Why is this man smiling?

Could it be because MGM Resorts International CEO Bill Hornbuckle came justhisclose to being S&G‘s Executive of the Year? Could it be for his vigorous pursuit of diversity within the lion’s house? Might it be for MGM’s very proactive “Convene with Confidence” anti-Covid program that promotes safe meetings and conventions with innovations like in-room testing? Perhaps it is for being the first Las Vegas CEO to drop the hammer and mandate Covid-19 vaccinations for salaried employees? Or maybe it’s for a canny string of real estate deals, culminating in the $1 billion sale of The Mirage, that have left MGM awash in liquidity?

No, we think it’s something else. Hornbuckle has just figured out a new way to fatten MGM’s bottom line, which—at least in the U.S.—is pretty phat already. “Tier Credit earning rates change for eligible spend. Starting February 1, 2022 earn 4 Tier Credits per dollar spent on eligible spend, including: hotel accommodations, dining, and spa services.” (News courtesy of @LasVegasUK) Currently it’s 25 Tier Credits to the buck. Yes, you will shortly have to play over six times as much to get the same number of Tier Credits. If the past year has proven anything, it’s that the tourist public is so masochistic that it will gladly put up with understaffing, higher table limits and ridiculous fee add-ons just to get that Sin City fix. Are we really surprised that MGM decided to take this to the next level? The irony is, they don’t need the money—and they’re probably going to take it all and spend it in Japan. But as long as players behave like sheep they can expect to be devoured by lions.

No, if we need to acknowledge a top exec this year, it is Scarlet Pearl Casino CEO LuAnn Pappas. She was the first casino boss in the country to mandate Coronavirus vaccines for her employees and the first to install bitcoin ATMs on a Mississippi casino floor. At the risk of old fogey-dom, we’re skeptical about cryptocurrencies and their volatility. But give Pappas credit for being ahead of the curve. Scarlet Pearl has also been one of the few casinos with the stones to take John “Mattress Mack” McIngvale‘s multi-million-dollar sports wagers. So Pappas gets our nod for 2021.

Penn National Gaming is trying to get a piece of the greater Philadelphia market with the opening of Hollywood Morgantown, the closest satellite casino to the City of Brotherly Love. Sighs our East Coast bureau, “With all the excitement that the Hollywood brand has, I won’t be in any rush to see it.” The following was found on the H’wood Morgantown Web site, emphases included: “With the new mywallet feature on the mychoice® rewards app, you can connect to any slot machine via Bluetooth, leave your cash and cards at home—and load funds directly from the app. That means you can keep playing, earning and redeeming with mychoice, directly from the app!” Adds our reporter, “With no cash required, this sounds like a Very Bad idea!” What happened to Penn’s responsible-gaming policy? They do have one, right?

Sports betting in Arizona came hot out of the chute, generating handle of $291 million. That’s the biggest debut of any state in U.S. history. The books collected $32 million in revenue in September (the official launch was Sept. 9) although almost all went right back out in the form of promotional credits—which hardly seem necessary given the manifest demand. All that was left in the kitty was enough to pay taxes and privilege fees. Only $3 million in handle was wagered in person, with the overwhelming preponderance of bets being made online, leading one to question the pricey investments being made in fancy-schmancy brick-and-mortar sports books.

DraftKings clobbered FanDuel in revenue, $13 million to $600K. PlayUSA only published September numbers but Deutsche Bank‘s Carlo Santarelli quickly logged in with October data, which showed books winning $37.5 million amid a slightly more rational promotional climate. In terms of handle, DraftKings continued to have a substantial lead on FanDuel, followed in order by BetMGM, Caesars Sportsbook, Barstool Sports and WynnBet. As for winnings, it was DraftKings ($11.5 million), FanDuel ($9 million), BetMGM ($8 million), then Barstool and Wynn ($2 million each). Unibet ($0) has been a flop, and Twin Spires and Rush Street Interactive aren’t doing much better.

Moving on to November, we find Virginia sports books reporting $403 million in handle and $48 million of revenue. “When football and basketball seasons converge, as they did in November, the inventory of games creates a ripe opportunity for sportsbooks,” reported PlayUSA analyst Dan Stupp. However, the November pace wasn’t quite that of October, $13.5 million/day vs. $14 million/day. Luck was with the books though, as their winnings eclipsed October’s $30 million. Of that $48 million, $15 million was returned to players in the guise of promotional credits. All of this was accomplished with just four weekends of football and only three Washington Snyders games. Said Stupp, “the importance of basketball is often overlooked. In most major markets it is the highest-grossing sport, a product of the number of games played compared with football.”

Sports betting is coming to Ohio, too … eventually. The enabling legislation, signed by Gov. Mike DeWine (R) doesn’t require it to be implemented until Jan. 1, 2023. When that day rolls around, you’ll be able to place a wager about anywhere you darn well please (including your neighborhood supermarket) on just about any sport imaginable. Sports betting will be taxed at 10% of net revenue, paid daily (you read that right), which could generate a great amount of complication—and expense—for the sports books. For instance, when do you pay the tax on a futures bet? There’s not much the regulators, who still have to write the rulebook, can do about this, although companies like MGM are trying to chivvy the process along, hoping that “Wait ’til next year” doesn’t become their new advertising slogan.

Quote of the Day: “Let everything happen to you: beauty and terror. Just keep going. No feeling is final.”—poet Rainer Maria Rilke