Steve Wynn, Commie stooge?; Resorts World LV jumps shark

If there’s one thing Steve Wynn loves almost as much as money (and women to whom he is not married) it’s the Red Chinese. He’s been warbling sweet nothings about them ever since he got a gig in Macao as a casino concessionaire. Now his up-close and personal relationship with the ChiComms may be about to catch up with him. He’s being sued by the Justice Department to register as an agent of China, having done some dirty work on Beijing‘s behalf. In 2017, he lobbied the Donald Trump administration to expel a Chinese businessman seeking asylum in the U.S., a particularly odious act. (The Trump administration, to its great credit, refused.) This isn’t a Biden administration vendetta (Wynn is a spent political force): Justice has been after him for four years to register under the Foreign Agents Registration Act and Wynn, with typical stubbornness, has refused. Hence the lawsuit.

Hey, the mogul is getting off easy. Criminal charges could have been filed but weren’t. “Where a foreign government uses an American as its agent to influence policy decisions in the United States, FARA gives the American people a right to know,” explained Assistant Attorney General Matthew Olsen. This inspired some predictable huffing and puffing from Wynn’s attorneys, who said, “Steve Wynn has never acted as an agent of the Chinese government … We respectfully disagree with the Department of Justice’s legal interpretation of FARA and look forward to proving our case in court.”

So hellbent was Wynn on getting the well-heeled Chinese exile kicked out of our country that he barged into the Trump White House unexpectedly on several occasions, working at the behest of then-vice minister of the Ministry of Public Security Sun Lijun. What motivated Wynn so much? Keeping his Macanese casino licenses, of course. The target of Wynn’s animus, Guo Wengui, was wanted by Chinese dictator Xi Jinping on charges of rape, kidnapping and bribery, which raises the question of why Xi didn’t pursue the matter through normal diplomatic channels rather than sending an errand boy. Also complicit in this matter is Elliott Broidy, a convicted felon and sometime Republican Party rainmaker. Broidy had also attempted to get Trump to quash an investigation of a Malaysian sovereign fund. A fine fellow, obviously. We don’t think Wynn belongs in the clink but if he’s going to wash China’s dirty laundry he can fill out some federal paperwork while he’s doing it, even if he clearly thinks it’s beneath him.

Pennsylvania casino revenue plowed ahead in April, showing no signs of cannibalization as it rose 11.5% over last year to $309.5 million. Leading the pack was Hollywood Penn National with $65.5 million, up 22%, with a surprise second-place finish going to Valley Forge Casino Resort (above) and its $57 million and change, a 54% moonshot. Parx Casino slipped to third, down 9% on a gross of $57 million. Wind Creek Bethlehem surged 34% to $49.5 million and Rivers Philadelphia shrugged off Philadelphia Live, $49 million (flat) to $25.5 million (+16%), while Harrah’s Philadelphia lagged with $20 million (+6%). Also up 6% was Rivers Pittsburgh at a market-leading $31 million. Rivals Hollywood Meadows ($21 million) and Pittsburgh Live ($10 million) were flat and up 27.5% respectively.

Mohegan Sun at Pocono Downs gained 8% to $22 million, followed by Mount Airy, experiencing a rare bad month: down 15% to $20 million. Presque Isle Downs trotted +1.5% to $11 million, Hollywood York banked $8 million and Hollywood Morgantown skyrocketed 347% to $5 million. Slot routes outgrossed Lady Luck Nemacolin, which brought home $2 million, a 2% dip. Sports books captured $49 million—$34 million after promotional giveaways—on handle of $573 million. The good news was that revenue increased much faster (36%) than handle (19%), suggesting that the books might be finally starting to get promos under control. Internet gambling was, predictably, more lucrative, earning $113 million for i-casinos.

Still, PlayUSA analyst Katie Kohler warned, “If there is a concern for the industry, though, it’s that troubles in the greater economy will push customers to slow their spending. It’s something every business has to watch closely over the next few months, especially for online casinos and sports books that have known nothing but growth.” Speaking of which, FanDuel trounced all competitors with $28.5 million in revenue, DraftKings lollygagging far behind at $5 million. Other also-rans were Barstool Sportsbook with #3.5 million and BetMGM, just shy of $5 million. With five skins, Penn National Gaming dominated i-gaming with $55 million. Then came BetRivers and its affiliated skins with $36 million, leaving table scraps for everyone else. PokerStars knocked off Mount Airy for top spot in i-poker with $2 million.

Elsewhere in cyberspace, Michigan realized $132.5 million in Internet-casino revenue last month, as well as $31 million from sports betting … minus $14 million in promotions. BetMGM ruled i-gaming with 38% of market share, followed by FanDuel (16%), DraftKings (15%), then much further back Caesars Entertainment (4.5%), Barstool (4%) and WynnBet (3%). Sports wagering was led by FanDuel, with its 32% share. BetMGM had 24%, DraftKings 21%, Barstool 8.5% and Caesars Sportsbook 7%.

Anyone want to buy a used ‘failsino’ site? For $7 million an acre—or $182 million total—the arid land on which Howard Bulloch tried to build SkyVue is for sale. Again. Seattle-based business Wayne Perry had bought it at a bankruptcy auction using a ‘credit bid’ (i.e., a promissory note for money Bulloch owed him). That and eight bucks cash will buy you a cup of coffee at Starbucks. We didn’t think much of Perry’s acquisition at the time and neither did the real estate market, evidently. CBRE is shopping the scrubland again, hyping it as a possible site for an Oakland Athletics baseball stadium.

However the A’s have site offers galore and why are they going to spend $182 million on land when gullible Nevada politicians will be only too eager to foot the bill? The acreage has already been discounted from $385 million and CBRE had better hope that some enterprising Native American tribe is willing to take a flier on the land, although the problem isn’t the upfront cost but the steep price of Las Vegas Strip construction. Bulloch told the Las Vegas Review-Journal the parcel had been “in escrow numerous times” but bidder “were just not able to arrange their financing as they had promised.” That doesn’t bode well.

As we covered earlier, DraftKings CEO Jason Robins whistled past the graveyard during his 1Q22 earings [read: losses] call. “Gaming has generally been very well performing during economic downturns, recessions, inflationary periods and the like. This has been well known about the industry for quite some time. And we’re certainly seeing the same thing materialize in our numbers,” he blustered. But, as columnist Ken Adams pointed out, “Today … no gaming executive, analyst, or observer believes it. The Great Recession, the events of September 2001 and most recently the pandemic exposed the fallacy in that thinking.”

Someone who lives in the real world, unlike Robins, is Hard Rock International CEO Jim Allen. He took a very grim view with investors, saying, “We look at gasoline anywhere from $5 to $6 a gallon. There’s no doubt that in most regional gaming markets, that customer is a day-tripper. When gas is up 30 percent to 40 percent, that’s going to be problematic.” He observed that Hard Rock casinos in Florida were already starting to see softer business. Fortunately for Allen, he is not answerable to the whims of the stock market and can batten down for the long haul. How much more patience will The Street have with Robins? Not having learned from history, he is surely doomed to repeat it.

If AEG Presents is telling the truth, Celine Dion‘s Resorts World Las Vegas residency, the tentpole of the Resorts World LV entertainment program will happen “later this year,” medical problems notwithstanding. The resort, however, appears to have given up hope. We were going to follow up by saying that, not to worry, Resorts World has a solid rotation of acts to fill the void. Then Genting Group jumped the shark by signing “illusionist” David Blaine, whose fame is built upon (as Penn Jillette so memorably put it) “stuff that Siegfried & Roy stopped doing when they were 12.” Maybe Blaine will prank Las Vegas audiences by having himself encased in a block of ice (again) and charging megabucks for the privilege of this non-spectacle. Judging by the queue for Blaine when he staged that nonevent at Lincoln Center, it would sell.

Quote of the Day: “The fact remains that the largely secretive selection process has resulted in the license being awarded to the least experienced operator, at a location in need of massive infrastructure upgrades and in a community where the majority of local residents oppose its location. Community input? Not so much.”—the Chicago Tribune on the behind-the-scenes casino deal between Bally’s Corp. and Mayor Lori Lightfoot (D).