At $277 million, Pennsylvania casinos were 2% higher in February than last year, although a 12% declivity from go-go 2019 is further indication of a slowing recovery in gaming. Then again, after having reached record altitudes last year, how much higher can the industry go? Sports betting activing was flat at $599.5 million handle, which boiled down to $62 million in revenue, $43 million after promotional giveaways. As measured by handle, BetMGM is getting the least bang for its buck, spending 7% of handle for a 7% market share. Most efficient was Barstool Sports, laying out 2.5% of handle for a 6% share, closely followed by Caesars Sportsbook. Internet gambling was way up (29%) to $131.5 million. The catchall Hollywood Casino license, embracing three providers, brought in $56.5 million. BetRivers accounted for $26 million, surpassed by FanDuel‘s $27.5 million.
In terms of terrestrial gambling, Parx Casino was predictably tops, down 4% to $48 million. Rivers Philadelphia (+25.5%) surged sufficiently to best Philadelphia Live (above, +32%), $19.5 million to $19 million, in the seesaw battle for runner-up status. Harrah’s Philadelphia slid 12% to $14 million, while Valley Forge Resort slipped 6% to $10.5 million. Easily the best of the remaining casinos was Wind Creek Bethlehem, down 4% but good for $38 million. In the Pittsburgh area, Rivers Pittburgh posted $30 million, up 8%, while Hollywood Meadows climbed 7.5% to $16 million and Pittsburgh Live was up 2% to $9 million. Outstate, Mohegan Sun Pocono Downs slipped 9% to $17 million, Presque Isle Downs hopped 3.5% to $8.5 million and Mount Airy was up 5% to $14.5 million. Hollywood Penn National was down 7% to $14.5 million and Lady Luck Nemacolin plunged 20% to $1.5 million. Among the remaining small fry, Hollywood York was up 5% to $8 million, Hollywood Morgantown (above) jumped 11.5% to $5.5 million and Parx Shippensburg grossed an impressive $3 million in five days of operation.
Add Arizona to the list of states having tax remorse with regard to sports betting. Having imposed an 8% tax on retail wagering and 10% on online betting, the state is seeing income of $28.5 million last year. A TV investigative report was shocked—shocked!—to discover that “several other states are making more money in taxes from sports betting, and in some cases—eclipsing Arizona’s take.” Blame it on tax-averse lawmakers like state Sen. Sonny Borrelli (R), who likened a tax rate higher than 8% to usury, saying, we’re starting to make the bookie and [sic] the end of the bar, we’re starting to make him a lot of money.” Proving himself to be not only hyberbolic but flat-out wrong, Borrelli continued, “People back east, they put the tax up so high, you know they made the Mafia billions of dollars because they, nobody’s going to do it legally.” ‘Nobody’ would presumably include the New York State citizens who wagered $14.5 billion legally last year.
Logic like Borrelli’s was probably also the reason that free play is tax-deductible, incentivizing providers to give away the store in promotions, rather than send those dollars to the state. However you look at it, it was a sweetheart deal. Borrelli is now hiding under the cone of silence but others are less reticent. Citing problem-gambling issues created by legalized sports betting, responsible-gaming advocate Brianne Doura-Schawohl says, “We weren’t really asking the right questions to understand the implications of this expansion.” And whose fault was that? Here at S&G we don’t favor legislative do-overs. Arizona made a bad bargain and has to live with it. To her credit, Gov. Katie Hobbs (D) has no plans to revisit the issue.
In Missouri, one maker of “amusement games” is suing another. “Politically connected” TNT Amusements has filed a federal claim against Torch Electronics, alleging that Torch’s truck-stop slot routes are illegal (which they clearly are) and have—horrors!—impeded TNT’s profitability. “TNT’s revenue has plummeted as a result of Torch’s illegal conduct,” wails the filing. “The presence of the Torch devices at amusement locations directly impacts TNT’s business.” Isn’t that the free market at work? Anyway, this is the second federal complaint levied at Torch, following one that accused it of RICO violations. The new litigation, ups the ante, adding charges of mail and wire fraud.
TNT has a point when it says, “Torch does not have a Missouri gaming license and does not operate its amusement devices in a casino.” Ergo, its slot routes are unlawful. State Sen. Denny Hoskins (R), meanwhile, would like to sweep the whole matter under the rug by legalizing the black-market routes, rewarding malefactors for having broken the law. On the other side, state Rep. Rasheen Aldridge (D) is pushing for a statewide crackdown. Torch has some big-time GOP allies on its side in a “red” state, so it’s no surprise that TNT is seeking injunctive relief instead of going to the state house. By contrast, the Kentucky Lege acted firmly to ban black-market slots, a bill quickly signed into law by Gov. Andy Beshear (D). PACs on both sides of the debate spent more than $600K in trying to prevail. Bravo, Kentucky. For shame, Missouri.
Jottings: You know the MSG Sphere in Las Vegas has image problems when its developers feels it necessary to contact the Las Vegas Review-Journal to assert that their London version is on schedule and “might” open in six months. To his credit, reporter Richard Velotta took the PR blat with a grain of salt … Penn Entertainment‘s on/off plan for a new tower at M Resort is back “on,” the company having filed plans with Clark County. Guess that means those sale talks with MGM Resorts International were a will o’ the wisp … It’s not just gambling anymore at Parx Casino. A 300-room hotel with rooftop dining is coming to the racino, envisioned for a 2025 completion … Congratulations to Nick Negro, new CFO of Scientific Games. The “results-oriented” Negro succeeds the retiring James Bunitsky and comes by way of the military-industrial complex … Turtle Creek Casino in Traverse City has 137 revamped hotel rooms, done at a cost of $10 million. The Michigan hotel has been refurbished with Native American themes, as befits the tribal property’s history … Tribal Bok Homa Casino in Mississippi is planning a “way overdue” restaurant and expanded sports book. Bok Homa hopes to have its enhancements ready by Dec. 20 …
MGM Resorts has big plans for Borgata. Its Water Club tower is to be renamed the MGM Tower and guest rooms will be redone at a tab of $55 million. A sky-high, 9,000-square-foot event space also plays a role the Water Club redo, which will be ready by Memorial Day. We salute Borgata for not resting on its laurels … Congrats, Sparks Nugget, you’re now the flagship casino of Century Casinos. The company’s $195 million purchase of the Nugget was approved by the Nevada Gaming Control Board, as it should be. General Manager Mark Sterbens and the existing staff will remain on the job … On the Las Vegas Strip, buffets are out and four-walled “specialty food halls” are in. The bottom line, of course, is maximizing profit. As food critic Al Mancini says, “we had warning signs that, unless you were doing it huge, like the Bacchanal at Caesars [Palace], why do it?” … In Warroad, Minnesota, tribal Seven Clans Casino has made room for 100 more slots and a new casino entrance, at the cost of $12.5 million. A sports bar has also been added in the 9,000-square-foot enlargement … Who has to be the last casino employee to die for a mistake? Cancer victims who work in Atlantic City shared their heartbreaking testimony with New Jersey solons last week. As Assemblyman Don Guardian (R) said to casinos flunkies, “I don’t want to take away your right to kill yourself by smoking. I do want to take away your right to kill someone else by smoking in a casino.” Good man—unlike outgoing Unite-Here Local 54 prexy Robert McDevitt, who remains stubbornly on the wrong side of the issue …
Boot Hill Casino in Kansas now has a DraftKings sports book. DKNG doofus Mike Golic attended the opening ceremony … Not to be outdone, FanDuel inked a $200 million pact with Horizon Next. The latter will manage the former’s media strategy, including its Internet-casino business … In a likely response to the Biden administration’s planned dilution of the Indiana Gaming Regulatory Act to broaden Native American online gambling, Playtech has paid $85 million for a stake in Hard Rock Digital. In return, Hard Rock gets Playtech games and technology platforms … At $12.5 million per acre, the Las Vegas Convention & Visitors Authority has unloaded a Strip parcel for $125 million. Unlike flibberdigibbet salmon magnate Claudio Fischer, the previous owner, new deed-holders Brett Torino and Paul Kanavos had an impressive track record of making good on their Vegas promises, and they plan a retail mall for the north-Strip site, just south of Fontainebleau … Feedback on proposed regulations for sports betting in Maine have pushed back the inception date for the rest of the year, possibly until 2024, Global Gaming Business reports … Great Canadian Gaming is feeling its oats, pitching a $725 million casino for Ontario. But the Mississaugas of Scugog Island First Nation are not amused.