May was the sort of month of which casinos dream. Although tourism to Las Vegas was flat with last year, a 14.5% boost in conventioneers helped carry Sin City. Attendance overall was up 2% despite what have been reported to be sky-high room rates ($198 a night, on average). Vegas could use that convention business, as visitation has been down in the past year more often than not. Tourists may not be coming back in droves but neither are they deserting a favorite playground.
On the Las Vegas Strip, casino takings shot up 13% to $808 million. Downtown, by contrast, was off its feed, -4% to $64 million. The Boulder Strip was up 3.5% to $80.5 million and North Las Vegas hopped 2% to $27 million. Miscellaneous Clark County unaccountably slumped, off 5.5% to $164.5 million. Border towns performed variously. Laughlin suffered a 5% decline to $41 million, while Mesquite was up 2% to $18.5 million and distant Wendover (also fueled by Utah) gained a point to $24.5 million. Volatile Lake Tahoe had an exceptional month, vaulting 23.5% to $16.5 million, while Reno also benefited 11% from the apparent California surge, grossing $70.5 million. Adjacent Sparks, however, was flat at $17 million. Not touristy enough?
The Strip numbers, once baccarat was subtracted, went from spectacular to solid, up 5%. Slot handle was up 10%, the best in nine months, while table games saw 4% greater wagering. Baccarat held at a super-tight 19.5%, resulting in a big win for the house, as baccarat play 30% and the house’s winnings exploded 58.5%. Table winnings for all other games were flat. Slots, however, were up 7%, as Lady Luck gave players a miss.
Also having a good month were casinos in Louisiana, where grosses improved 8%. The outperformer continued to be Bally’s Baton Rouge, grossing $6 million—or 591% more than its antediluvian precursor. It stole business from Queen Baton Rouge ($8 million, -17.5%) and incumbent L’Auberge Baton Rouge ($14.5 million, -16.5%). Also accelerating was Caesars New Orleans, jumping 29% to $27.5 million, while Treasure Chest improved 4.5% to $15 million. Less lucky were Boomtown New Orleans ($9.5 million, -8%) and Fair Grounds racino ($3.5 million, -5%). But Amelia Belle had an exceptional month, leaping 18.5% to $3 million. Outlying Evangeline Downs dipped 2% to $7 million.
In Lake Charles, a point was ceded by Golden Nugget, which made a hearty $30 million nonetheless. But it continued to lose pride of place to L’Auberge du Lac and its $31.5 million (9%). Once Tilman Fertitta’s buyout of Caesars Entertainment goes through, what becomes of nuisance Horseshoe Lake Charles? It grossed $8 million and stayed stuck far in last place as business fell 7.5%. Delta Downs, however, gained 5% to $17 million. Caesars had better luck in Shreveport/Bossier City, where Horseshoe Bossier muscled its way to second place with $15.5 million and a 39% wallop. It was narrowly bested by Margaritaville‘s $16 million, as it soared 16%. Newbie Louisiana Live was not to be outdone, jumping 25% to $13.5 million. Despite a 6.5% slippage, Bally’s Shreveport hung in there with $9 million. Boomtown Bossier was flat at $4 million, Sam’s Town slid 6% to $3 million and Louisiana Downs proved there’s life after Caesars, up 8% to $4 million.
OH NO! Guess who’s back? Unloved ex-mayor Lori Lightfoot (D) of Chicago has been retained by Bally’s Corp. to sue the city for putting in slot routes (well, that’s still in flux). Bally’s hopes to head off an infestation of convenience gambling, one which could well cut into $2 billion Bally’s Chicago‘s business. It’s a problem the resort-casino could do very nicely without. Bally’s argues (correctly, we think) that the insinuation of slot routes into the Windy City would violate the host-community agreement which Bally’s inked with Lightfoot, during her lone term as mayor. And who would know the Second City’s intent at that time better than its erstwhile mayor?
Also, it’s grimly apt that Lightfoot should be the new mouthpiece of the casino. After all, she selected Bally’s for the concession in return for $40 million for city coffers—and without consideration of rival candidacies. It was a sleazy move that probably helped get the shady Lightfoot bounced from office after one inglorious term. Then again, Lightfoot would probably be a star witness, should the case proceed, which puts her firm in an interesting pickle. Also, that HCA cuts both ways. Bally’s not-so-quietly deep-sixed a minority-investment provision, after a couple of cracker crybabies from Texas sued. Chicago has not held Bally’s to that provision … so is the HCA non-binding and purely advisory? We don’t see any moral high ground to be had in this case.
In a chilling series of events, too coordinated to be entirely coincidental, a nationwide slew of tribal casinos were threatened with violence last weekend. The menace extended from the Upper Peninsula of Michigan through multiple Oklahoma gambling halls, all the way down into Texas. In the case of Lucky Eagle Casino, in the Lone Star State, the Internet was the source of unreliable and ultimately false reports of an active-shooter incident, which would have been that casino’s second instance of gunplay in a year. As for all the non-Texas threats, they are troubling both in isolation and together. We’re currently witnessing the most anti-tribal federal government since Andrew Jackson‘s presidency. It’s been recklessly stoking the fires of racial division nonstop for the past 18 months and probably emboldened whoever is behind this wannabe-violent activity. Elect arsonists, expect a conflagration.