Effective today, all casinos in Macao have closed, in governmental reaction to a spike in Covid-19 cases. “Only essential businesses like supermarkets, gas stations, and pharmacies will remain open.” In other words, just when you thought things couldn’t get any worse in Macao, they did. SJM‘s Grand Lisboa is the Covid hot spot, with 13 of the 71 newest cases being spotted in the pleasure palace. At the risk of sounding heartless, this latest turn of events exposes the danger of doing business at the sufferance of an authoritarian regime. Companies vulnerable to the effects of the shutdown include (in diminishing order) Las Vegas Sands, Wynn Resorts and MGM Resorts International. They may pass the pain on to their Macanese workers. When the Las Vegas Review-Journal asked if they would continue paying the idled—through no fault of their own—employees, all three firms clammed up.
Adding insult to injury, S&P Global Ratings downgraded Wynn Resorts, declaring “Wynn relies heavily on a recovery in Macao because the region accounted for approximately two-thirds of the company’s property-level cash flow pro for a full-year contribution of Encore Boston Harbor and using 2019 cash flow for Wynn Macau.” Based on the reaction of Sands, companies affected by the clampdown are going to keep their own counsel, at least until 2Q22 earnings calls. Meanwhile, execs at Caesars Entertainment must be thanking their lucky stars that they’re not mired in the Macanese morass. Is Gary Loveman having the last laugh?
Gambling revenues in Illinois showed surprising strength last month, up 5% to $111 million. Most of that was driven by Hard Rock Rockford but same-store revenues were 1% higher. Rivers Des Plaines led all comers with $46 million and a 12% surge. Hard Rock chipped in $4 million and the rebranding of Bally’s Quad Cities continues to gain traction, coming on +17% and good for $4.5 million. The biggest gain of the month took place at DraftKings Casino Queen, erupting 23% to $6.5 million. Against this must be placed a number of setbacks. For instance, Par-A-Dice in Peoria tumbled 10.5% to $5 million and Argosy Belle in Alton plunged 14.5% to $2.5 million. Hollywood Aurora sank 13.5% to $7.5 million and Empress Joliet slipped 5.5% to $6.5 million. Of Caesars’ three properties, Grand Victoria was most prosperous with $12 million, albeit down 10%, while Harrah’s Joliet (pictured) made a symmetrical $11 million/-11% and Harrah’s Metropolis dipped 3.5% to $6 million. At least the Illinois market is showing some elasticity, which is more than could be said of …
Missouri, where revenues fell 3% to $151.5 million. Less foot traffic (-4%) couldn’t quite be recouped by higher spend per player (+2%). Despite a 2% dip, Ameristar St. Charles far outdistanced the competition with $24 million. Its nearest rival, both financially and physically, was Hollywood St. Louis, making $18 million but 5.5% down. Rebranding Lumiere Place to Horseshoe St. Louis failed to stanch the bleeding, as it plummeted 18.5% to $11.5 million. River City was the only St. Louis casino to record a gain, up 1% to $20 million. Across the state, Bally’s Kansas City continues to gobble up market share, vaulting 19% to $9.5 million. Argosy Riverside pushed back, up 9% to $15 million. Still losing action were Ameristar Kansas City (pictured), down 2% to $16.5 million and Harrah’s North Kansas City, off 4.5% to $14 million. Outstate, Century Casinos didn’t have an especially good month. Construction-disrupted Century Caruthersville fell 17% to $3.5 million while Century Cape Girardeau was off 7% to $6 million.
Sticking with the Midwest for a moment, Chicago is in for a serious disappointment if reports (and photographs) from Bally’s Atlantic City are to be believed. Our East Coast correspondent visited the players lounge, which is only open on weekends, for starters. “For middle and upper level players, this is the best Bally’s can do: chicken soup in a coffee cup and the world’s smallest ‘Greek’ salad. Looks like Bally’s is not up to competition in Atlantic City. About a month ago, we ate lunch at their ‘sports book’ and were told we could keep the menu because food would no longer be served there after that day. Server told us they needed the food/kitchen employees for their new Yard restaurant. If you want Bally’s breakfast at 8 a.m., your choice is Dunkin’ Donuts or go hungry. Between Bally’s and the Claridge, there is a Sack O’Subs that has great breakfast subs but doesn’t open until 10:30 or 11 a.m.” Bally’s Chairman Soo Kim talks big but there are growing reasons to doubt he has the capital or braintrust to back up all that verbiage.
On another Boardwalk-related note, we are told that “a homeless person asked Assemblyman Don Guardian (R) for a few dollars. Don told him he doesn’t carry cash. The homeless person told him to use his cell phone and send him money through Venmo. Don told the Press of Atlantic City he didn’t know what Venmo was!” Make of that what you like. Oh, and the NAACP is snubbing Atlantic City’s newest convention center—Harrah’s Resort—for a jumble of Borgata (new-ish meeting spaces), Tropicana Atlantic City and the local Sheraton. Was the latter a fallback position in case of a casino strike? Either way, the NAACP lucked out when the casinos came to terms with Unite-Here, even if it went down to the wire.
Jottings: It looks more and more like there will be five casinos in Thailand, sprinkled across the nation and taxed at 30%. “Unless done properly and transparently after local sentiments have been addressed, we could see the issue mired in petty politics, just as in Japan,” warned IGamiX Management & Consulting Managing Partner Ben Lee … Late of The Cosmopolitan of Las Vegas, former CEO Bill McBeath has landed on his feet at Crown Resorts, named its new chairman. Judging from his turnaround of the Cosmo, McBeath is just what the doctor ordered for Crown … Remember that long-awaited, long-delayed review of gaming policy that was just about to land on Great Britain‘s casino industry like a ton of bricks? Well, it’s suspended in midair thanks to the resignation of Prime Minister Boris Johnson. The review’s implementation has been punted to the next administration, giving the industry time to react and regroup … What’s trending in hospitality right now? Sleep concierges. Surely this wellness phenomenon will not be slow to reach Las Vegas, where shuteye is difficult to obtain (and undesirable to some).