Vegas hears wedding bells; Sahara upscales; Mega-Jottings

All-important Baby Boomer customers are ‘trickling‘ back to Las Vegas, according to the Las Vegas Review-Journal. That’s the latest positive augury for Sin City. Better still, the destination-wedding biz is “bursting,” per Forbes, and what place is more synonymous with a getaway nuptial than Vegas? Almost 50% of couples surveyed who were planning to tie the knot in 2020 are now looking at either renewing their vows this year or at least holding the receptions they couldn’t last year. Throw in family and college reunions, and all the arrows are trending upward. At the risk of stating the obvious, “Wedding parties can drive a lot of business to hotels and resorts, including booking ballroom or outdoor event space, having food and beverage offered throughout the celebration, which often takes place over a couple of days, and of course the room reservations for the wedding party and guests.”

4Q20 hotel business was at only at 56.5% of pre-Coronavirus levels but, two rounds of stimulus later, those numbers are certain to be burgeoning. Even business travel is looking better, expected to rise 21% this year. Of course, conferences and trade shows require a considerable outlay, and the shift to virtual meetings will not entirely recede. Business travelers aren’t expecting a return to normal until 2022 or ’23, maybe never. We’ve seen this in Las Vegas, where Las Vegas Strip hotel rates are rebounding dramatically on weekends (along with occupancy levels) but continue to languish midweek. Still, if you’re in a REIT, as much of the gaming industry now is, it’s a good time for you. Writes economist Calvin Schnure, “Lodging/resort REITs have fully recovered their losses from the early months of the pandemic, and the improvements in the fundamentals for leisure and business travel are encouraging for future gains as the economy—and the wedding business—gets back to normal.”

One company getting good news today (but not in a REIT) was Boyd Gaming. It was upgraded by JP Morgan analyst Joseph Greff, largely on the strength of “a stronger recovery” in both the Midwest and South. Las Vegas locals business was estimated to be slightly better but (not such good news), Downtown was “little changed.” Don’t expect a Main Street Station reopening anytime soon, in other words. “We now model Midwest & South revenues that are near 2019 levels (prior 92% of 2019). We think that our estimates aren’t best-case scenarios and leave the door open for potential, future positive estimate revision. Remarkably, March results, which operators have commented on being quite strong, haven’t benefited from the core 55+ year old customer, a segment that should recover as vaccination rates improve,” opined Greff. If Boyd can get all the way to pre-pandemic revenue levels, at least regionally, that would really be something. Although Greff didn’t mention FanDuel by name, it was a major factor in the upward ratchet of Boyd’s price target (to $70/share), valued as $12 of the share price. Post-pandemic austerities look to be permanent, which is a good thing if you’re a shareholder, maybe less if one is a customer.

Illinois sports books continue to lag a month behind the rest of the country in reporting data but February’s results were no surprise, congruent with the swoon seen across the rest of this great country. Handle was down for the first time since last July and yet was still an impressive $510 million, third in the U.S. The dark lining to this silver cloud is that in-person registration requirements are coming back, which should hobble growth of the industry. Confirmed PlayUSA analyst Jessica Welman, “Passing Pennsylvania should be momentous but it is almost certainly going to be short-lived, as the decision to return to in-person registration will likely mean the end of growth for the Illinois sports betting industry. Open registration has been a key component in making Illinois one of the largest sports betting markets in the country. Forcing people to physically appear in a retail sportsbook is a counterproductive measure, which should be apparent whenever … April data is released.” Super Bowl handle was $45.5 million and, overall, books saw $30 million in revenue, as luck was with the players. (Win was $49.5 million in January.) Basketball was dominant with $257 million in bets but tennis generated an unexpected $45 million in handle. It hurt neither punters nor books that the latter were open for a full month for the first time ever.

With 39% of the state’s handle—$200 million—DraftKings Casino Queen reigned supreme, followed by FanDuel/Par-A-Dice (more good news for Boyd) with $160 million, almost entirely online-derived. Former market leader BetRivers/Rivers Casino Des Plaines languished in third with $96.5 million, a big comedown. March 11 brought the launch of Barstool Sports but it’s certain to be kneecapped by the reimposition of in-person registration, which fell soon afterward. “Barstool had just three weeks to build a customer base in an open environment, which should put it at a permanent disadvantage against the market leaders,” Welman said. “That said, their brand is popular and should draw significant interest, helping to grow the market. It could be the last hurrah, of sorts, as new operators might be deterred by in-person registration.” Like New York, the Land of Lincoln is never without ways to trip up its gaming industry.

What’s the Sahara doing with its announced $150 million in capex reinvestment? Well, it’s lured Shawn McClain, a real culinary coup, to open a new restaurant. Called Ballo, it will be an Italian eatery (as the name implies) with a rather vague and wide-ranging remit. No Italian region’s cuisine will be favored over any other. It “promises to offer everything you know and love about Italian cuisine made bold and fresh in a vibrant setting that celebrates Italian culture and la dolce vita.” Also pledged is bold, contemporary Italian art, family-sized dining rooms and that sine qua non of a new Vegas restaurant: a live-action kitchen you can watch while you wait for your saltimbocca. McClain is usually associated with tony Vegas resorts like Aria so snaring him is a real feather in Alex Meruelo‘s cap.

Meanwhile, summer bathers should find Azilo “ultra pool” (Is the water ultra-cleaner than Vegas average?) ready in time for their visit. In addition to “sexy Moroccan décor, lush greens and an alluring atmosphere,” Meruelo’s PR peeps are teasing “state-of-the-art visuals, lighting and sound packages that combine to envelop guests in a beautiful desert sanctuary.” What that boils down to are a pair of wraparound LED walls that can synchronized or subdivided (think multiple sporting events), including for livestreaming of performances at Azilo. There will also be private pools, spas and restrooms for the elite, as well as the obligatory cabañas with HDTVs. For a casino that was pronounced dead last year, the Sahara gives every appearance of being alive in kicking.

Jottings: “There she is, Miss Mohegan Sun.” The megaresort has inked a pact with the Miss America organization to extend their association by three years. (The 100th Miss America pageant will be held at Mohegan Sun this December.) The renewal should extend through 2023 … The Macanese pataca may be living on borrowed time. There’s sentiment afoot in China to replace it with the digital yuan, not presently in use at Macao‘s casinos. “This could convert VIP players into premium mass players, encouraged by the higher level of services from casinos without extra cost,” analyst Angela Han Lee told Global Gaming Business, increasing casino cash flow by 10%. Of course there’s an ulterior motive, as the movement of the digital currency would be much easier for the central government to track … It did not escape the notice of Americans for Nonsmokers Rights that Ohio and Maryland, two states with smoke-free casinos, posted record March revenues this year, even at limited capacity. “Even as most Americans still hadn’t been vaccinated in March, customers were comfortable visiting smokefree casinos in Maryland and Ohio because of the lack of secondhand smoke,” extrapolated ANR CEO Cynthia Hallett …

Comedy Cellar at The Rio returns to action on April 17, two shows a night. “We’ve taken every possible step to provide the same quality of show the Comedy Cellar is known for, while ensuring the health and safety of our guests, staff and comics,” promises owner Noam Dworman. That means “Face coverings will be required while not actively drinking. In addition, temperature checks will be performed at the door, guests will enjoy contactless ticketing, and enhanced cleaning and sanitizing will take place between shows. Guests who are experiencing COVID-related symptoms or live with someone who has recently tested positive, are asked to stay home.” A limited number of $22 tickets are available if you use the code CCVEGAS when booking … Parx Casino got the thumbs-up to proceed with a new satellite casino in a former Lowe’s in Shippensburg, Pennsylvania. When completed it will have 600 slots and a restaurant … Japan’s Casino Regulatory Commission has published draft rules for gaming operation, a mere four years after casinos were legalized in Nippon. (Mahjong and pachislot will not be permitted.) Better hurry: The public-comment period ends May 9 … Does your online sports-betting life lack a certain je ne sais quoi, such as large-breasted women? Fret no more, Maxim is getting into OSB action with BetMaxim.com, funded by xSigma Entertainment to the tune of $50 million. It will be a brand of Carousel, which is aligned with Caesars Entertainment … Oklahoma‘s Kiowa Tribe is entering the casino business, having obtained trust land for a 17K-square foot Hobart casino. It will be a modest enterprise, employing 150-odd people and generating $13 million in annual economic impact.