So we leave on vacation (I checked into the Westin O’Hare and didn’t leave the building for three and half days) and all hell breaks loose in Big Gaming. The breaking story was MGM Resorts International‘s decision to shuck Gold Strike Tunica. It’s unloading a non-core property to the fast-expanding Cherokee Nation Entertainment. The fact that the Cherokee got 1,100 hotel rooms and a casino for a below-average 6X cash flow speaks for itself. Vici Properties remains the landlord and will collect $40 million a year from Cherokee Entertainment. MGM collects $350 million in cash, net, money it will hopefully not sink into the Osaka pit. The transaction is expected to take a year to close.
Although 2022 is still shaping up as a better year than 2019 for the industry, the post-pandemic recovery is definitely cooling. Indiana came out of May down 4% from last year, booking $212 million in revenue. With $36 million, Hard Rock Northern Indiana was the clear winner, besting nearby Horseshoe Hammond, falling a precipitous 24% to $29 million, and Ameristar East Chicago, plunging 34% to $17.5 million. Over to the east, Blue Chip was relatively unruffled, off 3.5% to $12 million. Elsewhere in the state, Hollywood Lawrenceburg was flat at $14.5 million and everyone else was down except Bally’s Evansville, up 7% to $14.5 million. Horseshoe Indianapolis banked $29 million, off 4.5%, and Harrah’s Hoosier Downs was down 1% to $21 million, both of them making up for the leakage up in Hammond.
Little Rising Star slid 14% to $4 million, Caesars Southern Indiana dropped 13% to $20 million, Belterra was down 13.5% to $8 million and French Lick Resort slipped 7.5% to $6.5 million. Sports betting brought in $31 million on 10% hold. FanDuel was first in market share (32%), segued by DraftKings (29.5%), BetMGM (14%) and Caesars Sportsbook (11%). Also-rans were BetRivers, PointsBet and Barstool Sports, all somewhere between 2% and 4%, qualifying them for participation trophies.
Missouri casinos stumbled 5.5% for a final tally of $163.5 million. Foot traffic was down (-10%) but gamblers spent 4.5% more, on average. Unlike Indiana, the results were very mixed. Revenue champ Ameristar St. Charles ($25 million) ceded 6% while River City hopped 9.5% to $23 million. Hollywood St. Louis gained 3% to $21 million and Horseshoe St. Louis fell 19.5% to $12.5 million. Over in Kansas City, established casinos continue to cede market share to upstart Bally’s Kansas City ($10.5 million, +7.5%). Argosy Riverside was flat at $15.5 million, but Ameristar Kansas City dropped 13% to $17 million and Harrah’s North Kansas City slipped 12% to $15 million. Outstate, Century Casinos made $6 million in Cape Girardeau (-14.5%) and $4 million in Caruthersville (-19%).
Casino workers in Atlantic City will vote tomorrow on whether or not to strike. “We’ve been saying for some time now that casino workers need a real raise,” said Unite-Here spokeswoman Bethany Holmes, reminding everyone that the collective bargaining agreement expired a fortnight ago. Should workers vote “yes,” the likelihood is that Unite-Here will pull the trigger just in time for the Fourth of July, just when it can create the most havoc.
Jottings: Crown Sydney‘s casino will finally get to open, thanks to the arrival of Blackstone Group. It’s anticipated that the license is for two years, with an option to renew … In another private equity power play, Oaktree Capital Management has bought Interblock. The Slovenian company specializes in the manufacture of electronic table games … Las Vegas Sands tried it and failed. Cordish Gaming tried once before—and failed. Now Cordish is again attempting to persuade the Spanish government to let it build “Euro Vegas” near Madrid. Cordish has pitched a surprisingly modest $21 million … Macao‘s satellite casinos, outsourced to the six concessionaires (mostly SJM) will continue in the government’s new gaming regime. Even so, six to eight satellites are expected to close … I-gaming is out of the question for Japan. Why not? The country can’t even get casino gambling off the ground … The “summer” opening of Legends Bay Casino in Sparks has been narrowed down to August. Its license is expected to be approved June 23 …
Another opening, that of Full House Resorts‘ temporary casino in Waukegan, has been slotted for October. The tent casino will hold 50 table games and 1,000 slots … The so-called World Casino Awards would have us believe that Del Lago Casino is “North America’s Best Casino Destination.” Pardon us while we laugh … Hard Rock International is one step closer to managing Greece‘s first resort casino, at Hellenikon. The troubled project was previously won—and evacuated—by Mohegan Sun … The ballot initiative to get online sports betting onto the November ballot in California is on track to qualify. However, three major counties’ petitions’ have yet to be validated … Choctaw Landing, the newest casino project in Oklahoma, has broken ground. The $165 million project will offer 100 hotel rooms, 600 slots and eight table games when completed.
Welcome back Dave. Sounds like an interesting vacation….
Interesting to see how Chicago Land gamblers are driving past Hammond (and East Chicago) for the new and super brand Hard Rock which is still in Gary; a less desirable neighborhood (not by far though) and further from the city.
The former Trump and Majestic Star casinos in Gary did not have as much fire power (nor anything really other than a dumpy hotel and “temporary” land-based pavilion that lasted for about 25 years)
Have fun in Chicago, unfortunately its really hot here now at around 100 degrees. One of my friends was at Hard Rock Northern Indiana a couple of weeks ago for a concert and he said the place was packed.