Gambling revenue of $108 million out of Illinois last month looks pallid at first glance. But consider this: It was only 6% off April 2019’s pace, when casinos were at full capacity and last month they did it at 50% capacity. So the demand is the definitely manifesting. One of the stars of the market was Grand Victoria (pictured), up 1% to $13.5 million. Of course the marquee performer was Rivers Casino Des Plaines, grossing $41 million for a 7.5% lift. Nearby rivals Empress Joliet and Harrah’s Joliet were down 16% and 17% respectively, grossing $7.5 million and $12.5 million. Hollywood Aurora slipped 9.5% to $8.5 million. Mid-state, the tailspin continues for Casino Rock Island, spiraling -37.5% to a meager $3.5 million. Par-A-Dice, meanwhile, dipped 6% to $6 million. In the St. Louis area, Argosy Belle slipped 20% to $3 million while DraftKings Casino Queen was down 23% to $6.5 million. Harrah’s Metropolis was steady as she goes at $6 million.

Sports betting continues to lag casino reporting by a full month, so we are only now getting the March numbers. Handle was $633.5 million, from which $50 million in revenue was derived, including a tax haul of $6.5 million. Noteworthily, Illinois was just a few whiskers behind Nevada ($641 million handle). Silver State, look to thy laurels! The prohibition of bets on University of Illinois and Loyola College may have put a damper on March Madness action ($177 million), with professional basketball engendering $366 million in wagers. “March Madness helped deliver a huge month for Illinois, but March is essentially a ‘last hurrah’ for the state’s rapid growth,” warned PlayUSA analyst Joe Boozell. “Illinois will still be one of the largest U.S. markets because of the population of the state, but it will be difficult to maintain its current status as the U.S. No. 3, much less catch Nevada. No matter how appealing a market, there isn’t any easy way to overcome the inconvenience of in-person registration.”

Continue reading Illinois’ surprise; Scandal at Churchill Downs; Palms complications

Maryland didn’t just do well in April, it posted its third-best month ever. Gaming win grew 11.5% from 2019, to $162 million. That’s with 50% capacity constraints at MGM National Harbor and Horseshoe Baltimore (all other casinos are operating at 100%). MGM still took 38.5% of market share with a $62.5 million gross, up 2.5%. Maryland Live was second with 36% market share, hauling in 22% more than in 2019 and grossing $58 million. Horseshoe was flat with 2019, cantering in a distant third (12% market share) with $20 million. Speaking of cantering, Ocean Downs crossed the finish line with $8 million, a 30% boost. Hollywood Perryville leapt 36.5% to $8.5 million and Rocky Gap Casino gained 19% to $6 million. Even West Virginia is looking a little better. Over a three-week period ending April 24, it was down only 14%, with slots (-14%) propping up tables (-18%). Hollywood Charles Town underperformed the state, as slots declined -21%, tables were off 24%, averaging a 22% decline overall.

While on the subject of Penn National Gaming, it reported 1Q21 results yesterday. JP Morgan analyst Joseph Greff described it has having a “very strong regional casino top line,” similar to its peers. Although the quarter saw partial casino closures in New Mexico, Illinois and Pennsylvania, revenues were down only 6% from 2019, while cash flow grew 7% (no doubt due to operational economies). Furthermore, the company “indicated that strength has continued into April and May, with strong spend per visit continuing but now experiencing improved visitation relative to earlier in the pandemic, with a return of the important 55 year-old plus demographic.” Whereas Wall Street consensus had Penn achieving $1.1 billion in revenue and $394 million in cash flow, the company delivered $1.3 billion and $447 million respectively. Revenues from Penn Interactive helped shore up the year/year comparison, while numbers were boosted especially in the South, where dining and casino capacity restrictions have been lifted the most. As for revenue comparisons with last year, they were—as might be expected—all positive, except the West region (Las Vegas and New Mexico), down 24%.

Continue reading Recovery has legs; Resorts World LV impresses

In another sign of a faster-than-expected Las Vegas comeback, room rates on the Strip for the May 23-29 period are reported to be flat with 2019. Midweek numbers are mildly down (-17%) but counterbalanced by higher weekend rates (+18%) than two years ago. This is a big achievement and a rapid one. Only Wynncore is missing out on the bounty, -2% weekdays but -45% on the weekend. MGM Resorts International is just 2% off the midweek pace and +22% on weekends. Caesars Entertainment is down 36% weekdays but 28% higher on the weekend, while Venelazzo is not feeling the midweek love (-27%) but rebounding +63% on weekends. The midweek numbers at MGM and Wynn may have been goosed by the fact that there’s finally a convention in town but it looks like the window may have closed in Sin City for travelers seeking a room-rate bargain.

Vital Vegas is doubling down on its insistence that the Palms Casino Resort has been sold to the San Manuel Tribe, despite an absence of confirmation from either Station Casinos or the analyst boys on Wall Street. A sale would be a plus for Station investors, as it would remove a dead weight from Station’s balance sheet, provide a one-time cash infusion and accelerate the company’s refocus on what it does best: build quality locals casinos. (Will Durango Station ever be constructed?) Scott Roeben reports that the San Manuel got the Palms for $660 million, which wouldn’t even cover the $690 million Station put into renovating the place, although it would recoup the $312.5 million purchase price. So, capex aside, the Palms is now worth considerably more than when Station got it for a fire-sale markdown. That’s the glass half-full perspective.

Continue reading Las Vegas rates rebound; Kentucky Derby brings out crowds

Silver State casinos grossed $1 billion last month, with the Las Vegas Strip down 9% from 2019 to $501.5 million but locals-derived win vaulting 23%, leading to a 4% statewide increase on pre-Coronavirus numbers. The silver lining for the Strip was that win was 44% higher than in February, while locals improved 38%. The numbers were undoubtedly helped by a March 15 increase to 50% capacity in casinos, with further improvements likely in May (80%) and June (100%). Strip slot win was “flattish” which is actually impressive considering that coin-in plunged 29%. Slots kept $239 million on tighter holds. Probably the best news for Strip casinos was that baccarat is back, as win grew 32% on 29% more wagering and an exponentially higher hold. Other table games sucked wind, down 33% on 27% less handle.

Downtown casinos grossed $71 million, a 21% gain, while North Las Vegas nudged up 2% to $26 million. The Boulder Strip leapt 37% to $96.5 million, while miscellaneous Clark County hopped 19% to $133.5 million. Laughlin was modestly down, -4%, grossing $48 million, Reno jumped 18% to $59 million and Lake Tahoe rocketed 51.5% to $26 million. As for those Strip results, they can be chalked up to still-anemic visitation. Tourism was down 40% from March 2019. Hotel occupancy was 55.5%, compared to 2019’s 91.5%. Average daily rates fell 27% to a wallet-friendly $104, while revenue per room was $58. Thanks to a dearth of conventions, midweek occupancy stood at 48%. Air traffic still has a long way to go, down 42%, but highways saw as much as 7% more vehicles heading into and out of Nevada. There’s a ways to go but we’ll take numbers like these when we can get them.

Continue reading Nevada recovery skips Strip; Boyd buoyant