Heaven be praised for the coming of 2023, not because 2022 was bad (quite the contrary) but because Wall Street is addicted to measuring this year against 2019, not 2021 … which can be quite crazy-making. By that yardstick, Pennsylvania casinos would appear to be staggering, -15%. But when measured against last year, they’re languishing only mildly, down 3% last month. Newcomers tended to grow (more of that later) and incumbents lost market share. Even after a 6% slippage, Parx Casino impressed with $46 million and Wind Creek Bethlehem notched $40.5 million, -2.5%. The cutthroat Philadelphia market is owned by Parx while the best of the rest was Philadelphia Live with $19 million, up a resurgent 19% and a few hundred thousand clams in front of Rivers Philadelphia, which is 7% off last year’s pace. Harrah’s Philadelphia plunged 16% to $12 million and little Valley Forge Resort tumbled 16.5% to $9.5 million.
The Pittsburgh market has also gotten more competitive with the entry of Pittsburgh Live ($9 million, +12.5%), impinging slightly on Rivers Pittsburgh ($28 million, -3.5%) but no so much on Hollywood Meadows ($15 million, flat). Mohegan Sun Pocono Downs did the best of the rural casinos, with $17 million (-3%). Mount Airy, soon to be an adults-only resort, hopped 1.5% to $14.5 million. Elsewhere in the state, Presque Isle Downs slipped 5.5% to $8 million, Penn National tumbled 13% to $13.5 million, Hollywood York leapt 15% to $8 million and newbie Hollywood Morgantown was good for $5 million.
Internet casinos contributed another $128.5 million to the $265 million engendered by terrestrial play. The catchall Hollywood Casino skin (which also embraces DraftKings, Barstool Sports and BetMGM) netted $56 million, while BetRivers grossed $27.5 million and FanDuel $26.5 million. Sports betting saw a $70 million gross (lessened by $17 million in promotions) on handle of $789 million. Breakdowns by operator are unavailable.
Only 2019 comparisons are available for Detroit‘s three casinos and they’re not flattering. The trio grossed just an increment under $100 million last month. MGM Grand Detroit, a real category-killer, led the pack as usual with $47 million, down 13%, while Hollywood Detroit stiffed -21% to $23 million, leaving $30 million for MotorCity (no tracking provided). Internet gambling yielded $145.5 million, led by MGM again with $53.5 million. Other top performers were DraftKings ($29.5 million), FanDuel ($27 million), BetRivers ($8.5 million), WynnBet ($5.5 million), Barstool ($4 million) and Caesars Entertainment ($4 million). It doesn’t say much for Caesars’ brand equity that punters would rather play online casino games with providers best known for daily fantasy sports.
Speaking of which, sports betting was dominated by FanDuel, which nabbed 49% of the $41 million grossed, off of $480 million in handle. It was followed by BetMGM (21%), DraftKings (17%), Caesars Sportsbook (5%) and Barstool (3%), with a plethora of operators scrambling for the remaining 5%. Promotions seem to be rationalizing, at least a tiny bit, accounting for $15 million or 37% of overall revenue.
Throw another Stetson into the scrumdown for Texas casinos. Dallas Mavericks owner Mark Cuban wants Las Vegas Sands to help him build a megaresort in downtown Dallas. Whether the egos of Cuban and Dr. Miriam Adelson can fit into the same room remains to be seen. Nor does Sands necessarily want Cuban calling the shots, although it’s smart of him to realize he needs LVS’ expertise rather than rashly going it alone. But let’s leave that aside for now. Cuban’s grand scheme, to be achieved by 2031 when his American Airlines Center lease expires, is to build a destination casino-resort anchored by an NBA stadium, all to the greater glory of Cuban. It’s an egocentric vision worthy of Sheldon Adelson himself. “I welcome [Mark Cuban] to the arena of this discussion,” said state Sen. Carol Alvarado (D), leading proponent of casinos in the Lone Star State. After all, everybody knows who Cuban is, while Tilman Fertitta‘s name doesn’t mean much if you don’t watch CNBC, his usual hangout.
Cuban demurred about his political savvy but is right that Texas is overripe for casinos. As he said, “Online gambling’s great because it’s fun for fans and everything. The reality is that a bunch of politicians in Texas have already said that mobile gaming only moves the needle a little bit. But destination resort casinos? That’s billions of dollars to the state. Big difference. We need to be a destination.” Indeed. Getting the support of two-thirds of the Lege seems a lofty goal but with Alvarado pushing from the left and former governor Rick Perry leading the charge from the right, it has a chance next year. As for the Adelsons, their signature project on the Las Vegas Strip, the MSG Sphere, has gone into such excessive cost overruns that it will now exceed Allegiant Stadium as the priciest entertainment venue in Sin City. What price posterity?
Say who you like about lightning-rod Cuban, at least he is decisive. Not so New York Mets owner Steve Cohen, still dithering about a casino in Queens. His latest initiative is a Hillary Clinton-style ‘listening tour’ of the borough. “For months, we have been listening to the local community who keeps telling us there is more they want from the area. Everyone agrees that the status quo isn’t acceptable,” said Cohen, without putting forward an ‘acceptable’ alternative, indeed any. Cohen, once mentioned in the same breath as Sands, may even be backing off the casino idea altogether, muttering instead about live entertainment and open-air fun. Fortune favors the bold in New York City and Cohen is waffling while at least five other contenders get the jump on him.
Disgruntled Florida man Steve Wynn is aiming for a $300 million payday as he puts a vast swath of real estate on the market. He’s gambling that the “faltering” luxury market will be paydirt for him. The bargain play is a pair of Sun Valley properties that go for a $27 million parlay (a $19.5 million markup). $90 million gets you Wynn’s Manhattan penthouse, where he probably used to hang with Charlie Rose. A mere $78.5 million nets you Wynn’s Palm Beach pied-a-terre, from whence he shakes his fist at an ungrateful world. Still going begging is a $100 million pad in Beverly Hills. At age 80, Wynn may have finally concluded that he can’t take the real estate with him. (Boy, is he going to give God a hard time when he reaches the pearly gates.)
If you balk at Wynn’s asking prices, you’re getting his decorative expertise along with them. As one Realtor says of a seven-bedroom Idaho cabin, “He took it from a very heavy, dark mountain-lodge style home to something that’s open and light with a more elegant feel.” Don’t worry about Wynn ending up homeless on a street corner. He’s gone through at least two other Palm Beach properties during the Covid Era, making handsome profits every time. “It’s like owning your own resort,” said a listing agent of the Wynn’s Las Vegas crib. He did have to compromise on that one in order to move it, asking for $25 million but settling for a paltry $17.5 million last June. (Pass the crying towel, please.) Given Wynn’s superb taste in architecture and decor, one could at lot worse—if you have the megabucks—than scarf up one of his luxury properties. Just expect him to drive a hard bargain.
Mark Cuban also has a “cost plus generic drug plan” available to anyone who wants it: “To get started, ask your doctor to send a new prescription to Mark Cuban Cost Plus Drug Company.”