Gaming industry bears are going to latch onto a 4% drop in Maryland gambling earnings as evidence of an impending recession. Thankfully, J.P. Morgan analyst Joseph Greff puts it in context by pointing out that the $174 million haul is 17% higher than July 2019, itself a high-water mark at the time. The Free State moves closer to a duopoly, with MGM National Harbor (41%) and Maryland Live (36%) capturing more than three-fourths of all business. That left woebegone Horseshoe Baltimore, the casino that Caesars Entertainment forgot, with just $16 million, 13% below last year and 17% down from 2019. MGM, meanwhile, raked in $72 million, a 6.5% slippage, while Maryland Live booked 63%, up 2%.
Outstate, Hollywood Perryville was flat at $7.5 million, while Ocean Downs slipped 4% to $10 million. In its last month as a Golden Entertainment property, Rocky Gap Resort did $6 million, a 6.5% dip. Over in West Virginia, there was minimal variation, good in a month that had one less weekend day than the year before. Slots were up 1% while table game winnings were flat. Hollywood Charles Town bucked the trend, being 2% down at the slots but 2% higher at the tables.
While we’re in vicinity, it would behoove us to note that the Urban One casino project being juiced into a November ballot slot in Richmond is drawing some ire for the sweetheart nature of the deal. Attorney Paul Goldman astutely noticed that Mayor LeVar Stoney (D) and the city council didn’t bother to hold a competitive-bidding process but gift-wrapped the upcoming referendum for Urban One. The latter had been the beneficiary of the 2021 open-bidding process, besting Golden Nugget, Cordish Cos. and Bally’s Corp. However, voters were entitled to a rebidding, especially if Stoney is going to cram that damn casino down their throats (they voted against it in 2021), as he seems to determined to do. Also, the much-touted minority owners have now become a stalking horse for new partner Churchill Downs. Ironically, Goldman actually favors the do-over plebiscite … but thinks voters are entitled to have all the facts. We agree.
To give the Illinois Lege its due, it may have been right that enlarging the number of Land of Lincoln casinos would grow the industry. At least that’s what July’s revenue numbers suggest. On a same-store basis, revenues were flat with last year’s. But factor in new product and they expand 8.5%. In other words, the new casinos don’t appear to be cannibalizing the old ones, at least from a top-line perspective. Let’s take a closer look. In Chicagoland, newbie The Temporary at American Place ($8 million) does appear to be nibbling on the femurs of its competitors. Rivers Des Plaines ($47 million) was down 5.5%, as was Grand Victoria ($12.5 million), while Hollywood Aurora ($8 million) and Hollywood Joliet ($9 million) were off 2% each. None of that is serious damage and Harrah’s Joliet defied the trend by climbing 4% to $12 million. Hard Rock Rockford, now into its second year, shot up 23% to $6 million.
Elsewhere in the state, new Golden Nugget Danville eked out $3 million in its second full month. In the St. Louis market, DraftKings Casino Queen‘s $7 million represented an 8% gain, while Argosy Belle leapt 15% to $3 million. Par-A-Dice mucked $5.5 million (+4%), Bally’s Rock Island did a like amount (+7%) and Harrah’s Metropolis was flat at $6 million. All the gains were more impressive for having been achieved in spite of an unfavorable calendar.
Commissioner, heal thyself! That’s our reaction to the NFL‘s plea to Rep. Dina Titus (D, above) to save it from itself where illegal gambling is concerned. Specifically, the league wants Congress to act as back-alley enforcer, putting a hurt on the betting competition. As far as congressmen are concerned, the NFL may need to go suck eggs, as it has been less than forthcoming with data about its in-house gambling problem. “It’s very disappointing that the NFL has declined to answer our questions and instead pivoted to illegal sports betting generally in their response,” said Titus. “It makes one wonder what they are trying to hide.” Besides, it’s not like Congress can do a damn thing about offshore sports books. For that matter, what will making more laws against Lefty down at the corner achieve? His actions are already unlawful and yet people (foolishly) keep going to black-market bookies anyway. If John Q. Public is betting on NFL games through league-approved bookies that’s hardly Congress’ headache.
You kids get off of my lawn! That’s the old-fogey message coming from Bally’s Atlantic City as it announced a new policy that makes the swimming pool off-limits to anyone under 21. This was supposedly prompted by “complaints” regarding children in the natatorium. “The pool is an amenity for our hotel guests,” the casino declared shirtily, leaving open the question of what children of hotel guests are supposed to do instead. Gamble? General Manager Michael Monty‘s fatwa was well-received by an Instagram fan who thumbed, “We as adults are spending the money we need a place to relax and cool off.” Also saying a thank-you will be Bart Blatstein, whose new water park stands to pick all the kiddie business that Bally’s is spurning. And from what we hear, Bart could use the lift.
Elsewhere in what passes for the Bally’s empire, CEO Robeson Reeves is evidently unwilling to play Captain Ahab to BallyBet‘s Moby Dick, unlike predecessor Lee Fenton, who walked the plank as a result. Bally’s is credibly reported to be contemplating a sale of its (underperforming) OSB assets, which are simply too far from gaining credible market share to be worth the trouble. If this is true, Bally’s leadership kept it under wraps during the most recent earnings call. However, Reeves did lay the groundwork for repositioning by downplaying sports wagering as merely “a funnel” to bring players into where the real money is: I-gaming. If Reeves intends to stop throwing good Bally’s money after bad then we applaud the move.
Perhaps Station Casinos is looking to patch up its image with Clark County‘s public schools. Or maybe it’s just feeling generous. Either way, we applaud its forthcoming $120,000 donation to The Public Education Foundation‘s “Start Smart” program, which features 11 county schools. On top of that largesse, Station will be providing school lunches and supplies to soften the back-to-school blow to the little nippers. Durango Resort boss David Horn will be forking over the 120 dimes tomorrow at a morning ceremony.