Despite having neither financing nor a coherent design, Bally’s Corp. insists that its eponymous Las Vegas resort is a “go.” Shuffling paperwork to create the illusion of progress, Bally’s submitted budgetary documents to Clark County. Evidently the papers projected a start date of December 2025, so we can go ahead and throw out the estimated December 2030 completion out the window. Already Bally’s has welshed on its promise to be open when the adjacent baseball stadium (theoretically to be home of the Sacramento Athletics) debuts in 2028. Nor is that all.
Bally’s estimated budget of $1.2 billion for a two-tower, multi-phase megaresort simply beggars credibility. Remember that Aria cost $4 billion, Resorts World Las Vegas $4.3 billion and Fontainebleau at least $3.7 billion. Not for the first time, Bally’s Chairman Soo Kim sounds like he’s been snorting “happy dust.” Interestingly, just yesterday Bally’s LV was the source of eager skepticism on the weekly Casino Reports podcast. For context, the nine-acre stadium is budgeted at $2 billion. Bally’s would have use believe it can build a 26-acre pleasure palace for roughly half that amount. Makes you wonder where the corners will be cut.
Elsewhere, Bally’s is clearly planning a dreaded soft opening for its $1.7 billion Chicago megaresort. It’s only 14% finished by Bally’s execs insist they can get it done by year’s end. The phrase “speed through completion” isn’t reassuring but at least Gaming & Leisure Properties Inc. is providing adult supervision. Evincing Bally’s obvious desperation, Chief Development Officer Chris Jewett said, “We’d love to be open today.” We bet they would. This is a company that needs money yesterday and hasn’t posted a profit within memory. Jewett pooh-poohed the disappointing performance of Medinah Temple‘s temporary casino, blaming it on a lack of amenities.
And is George Papanier out as company president? The Chicago Sun-Times identifies one Ameet Patel as prexy of Bally’s. He gushed, “If I see the renderings today, it gives me goosebumps.” Patel was squirming under the questioning of skeptical aldermen. “I need to see you all do a better job,” concluded one, noting that rival casinos in Indiana were siphoning off business that could have been Medinah Temple’s: “It’s not well-advertised and you all are not doing all that you can to make sure that this thing actually works.” Sounds like Bally’s all right.
Early returns from December aren’t trending so hot on the East Coast. For instance, Massachusetts was off 4% as its three casinos combined for $98 million. (At least sports betting was boffo.) Encore Boston Harbor dipped 4.5% to $62 million, MGM Springfield slipped 3.5% to $22 million and Plainridge Park was down 3% to $14 million. Sports betting revenue, however, spiked 70% to $101 million on handle of $845 million, dominated by DraftKings with $54.5 million. FanDuel made $26 million, BetMGM $5.5 million, theScore $2.5 million and Caesars Sportsbook $1.5 million.
In the Keystone State, revenue slid 5%, for an overall gross of $266 million. Four casinos were revenue-positive: Rivers Pittsburgh ($29 million, 2.5%), Valley Forge Resort ($12.5 million, 1%), Philadelphia Live (above, $22 million, 4%) and Parx Shippensburg ($3 million, 6%). The worst slump hit Hollywood Penn National, plunging 16.5% to $11 million. Other double-digit losers were Pittsburgh-area Penn Meadows ($14 million, -15%) and suddenly luckless Lady Luck Nemacolin ($2 million, -12%). Parx Casino was down 9% but still led the state with $44 million, while Wind Creek Bethlehem was close behind ($41.5 million, -7%).
Rivers Philadelphia slipped 7.5% to $17 million and Harrah’s Philadelphia dove 7.5% to $10 million. Mohegan Pocono slipped 2% to $16 million, Presque Isle Downs was down 5% to $7 million and Mount Airy Resort dipped 3.5% to $14 million. Hollywood York was 2% off at $8 million and Hollywood Morgantown fell 8% to $5.5 million. Keystone State citizens, by staying home, turned to iGaming in droves, losing $259.5 million online. That was a 16% leap. FanDuel ($72 million) and DraftKings ($42 million) topped most of the legacy operators: BetRivers ($39 million), Hollywood Casino ($6 million), BetRivers ($39 million) … but not BetMGM, which tallied $44 million for second place.
Sports books held super-tight in Michigan. Try 16.5% on for size. Ouch! Punters lost $84 million out of $513 million wagered. Penn Entertainment‘s theScore bested Caesars Sportsbook, $3 million to $1.5 million. BetMGM saw $10 million, DraftKings $21.5 million and FanDuel $34 million. BetMGM also ceded iGaming supremacy to FanDuel, $68 million to $77 million. DraftKings raked in $55.5 million, Caesars Palace Online $19 million and Hollywood Casino $7.5 million. Terrestrial casinos were led by MGM Grand Detroit with $50.5 million (-1%), Hollywood Greektown made $22.5 million and MotorCity did $30 million.
Not for nothing was Derek Stevens recently profiled in Forbes. There aren’t many true risk-takers left in Big Gaming and Stevens is a standout among that dwindling breed of entrepreneur. Let one example suffice. Las Vegas continues to suffer from the persona non grata status of people from Canada. (We can’t think why they’d want to come here right now, but let that pass.) Rather than simply bemoan the fact that Great White North visitation was -20% last year, as the rest of the industry is doing, Stevens is taking steps. He’s offering a promotion whereby Canadian dollars will be honored on a 1:1 basis with American ones. That’s a $1.40 value for every American buck.
Admittedly, this only applies to “select” offerings at Circa or The D or Golden Gate. But it’s a helluva lot better than just whingeing about the problem. Remarked Stevens, “Canada has always been a part of my story, so I feel a deep connection to our Canadian visitors here in Las Vegas.” Remember, he grew up just across the bridge from Windsor, Ontario, so he knows whereof he speaks. We don’t know if this will move the needle on Canadian tourism to Vegas, but trust Stevens to inform us if and when it does.
Meanwhile, Stevens’ confreres in Big Gaming are engaged in maidenly fretting over the future of tourism from Europe. The U.S. government having spent the last week punching our transatlantic allies in the face, there might be some fallout. Besides, obtaining a tourist visa is becoming insanely intrusive and expensive. How many more roadblocks to tourism shall we throw up? As Las Vegas Convention & Visitors Authority boss Steve Hill delicately put it, “when uncertainty increases, it’s reasonable that international visitors could consider other destinations.”
At least Hill (pictured) had the balls to say something. Others whose lunch is being eaten merely ran and hid, with “some saying the topic is too volatile to comment on and others saying it’s too early to analyze potential tourism consequences.” Gosh yes, let’s not ruffle any hypersensitive feathers in Washington, D.C., or indeed say anything until it’s much too late.
We don’t know a great deal about Nebraska Gov. Jim Pillen (R) but he did launch an impressive Dickhead of the Year candidacy this week. Although legalized gambling continues to expand in the Cornhusker State, Pillen had the nerve to propose that it “eliminate the state organization that connects people to free counseling services for gambling addiction.” Gov. Grinch would also claw back $600,000 in funding for aid to disordered gamblers, whilst dumping the semi-funded mandate upon Nebraska’s Department of Health & Human Services. Pillen’s dickwad move comes at a time when demand for precisely the services he would eliminate has risen by 40%.
We defer to Nebraska Council on Problem Gambling Executive Director Mike Sciandra, who says, “Without that treatment, I truly believe I would be dead or in jail at this point. This is life or death for so many people out there. It’s beyond just being a behavioral issue, it is a public health issue. If we are going to make cuts anywhere, this feels like such a horrible place to do it and so many Nebraskans and their families will be affected.” Unfortunately, there are too many people in America like Pillen, who regard gambling addicts with contempt and would be only too happy to see them left to their own desperate devices. For shame.
Gridiron Grumbles: We regard this weekend’s NFL conference championships with some trepidation. Although our heart is with Mike Vrabel and the New England Patriots to win it all, if the Denver Broncos defense can keep it close, we think Denver could minimize Jarrett Stidham‘s rustiness and win ugly in a low-scoring game. That’s our fear, anyway. We also expect a defensive struggle in Seattle, where the Los Angeles Rams‘ Cinderella season will undoubtedly turn to a pumpkin against the Seattle Seahawks. The missus is a Matthew Stafford fan, so we take no joy in our prediction.
Movie pick: If you haven’t seen Gus Van Sant‘s Dead Man’s Wire, you’re missing the best film of the year so far. Easily. It’s based on bizarre, true-life events that took place in 1977, but Van Sant clearly didn’t choose the subject matter out of nostalgia. The movie feels like it could happen tomorrow. Also, when most movies (even cash-it-in comedies) fart-ass around for 130-150 minutes for no good reason, Van Sant respects our time and tells his tale in a brisk 105. Buy that man a beer!