Keep moving, nothing to see here. That’s the message from Big Gaming’s errand boy, Nevada Gaming Control Board Chairman Kirk Hendrick. Of the Sept. 10 cyber-rape of MGM Resorts International, Hendrick loftily informed Nevadans that it was unlikely the NGCB would update them on the fallout from the MGM raid, nor one on Caesars Entertainment. Instead, the Board “is now acting in its capacity as an investigative and law enforcement agency to support the gaming industry and protect the state of Nevada and its citizens and visitors.” [emphasis added] Isn’t that sweet? “To support the gaming industry.” Note also how “visitors” are the lowest on Hendrick’s totem pole. Wasn’t the NGCB’s remit to oversee the gaming industry, not support it? As the late Art Marshall of the Nevada Gaming Commission once told us, “The Control Board dispenses justice, the Commission dispenses mercy.”
If it was the NGCB’s job to mete out justice, it’s not any more. Not under the deregulate-at-any-cost regime of Gov. Joe Lombardo (R). Hendrick, his regulatory hatchet man, is the guy whose bright idea it is to deploy relatively untested slot machines in Nevada, as quickly as possible. He’a also the dude who only had to proclaim that some regulations were “outdated” to have the rest of the Las Vegas media chirping along in chorus. If Silver State regulation has been hampered from keeping up with the times, God help it when Lombardo and Hendrick are through.
In an effort at damage control, MGM informed the Securities & Exchange Commission that the fiscal impact of the cyber-terrorism would ‘only’ be $100 million impairment of cash flow. Whew! We were afraid real money might be at stake. Even so, the ultimate cost—MGM admits—is as yet undetermined and full customer service has not been restored. It is supposed to happen “in the coming days,” however long that might be. In an official statement, CEO Bill Hornbuckle wrote that the purloined data “includes name, contact information, gender, date of birth, and driver’s license number. The types of impacted information varied by individual. We also believe a more limited number of Social Security numbers and passport numbers were obtained. We have no evidence that the criminal actors have used this data to commit identity theft or account fraud.” Not very reassuring, especially if you’ve seen an upsurge in phishing lately. (Like all those people who message us claiming to be Kate Beckinsale.)
Also, what is “limited”? 51,248 stolen records (to use a completely made-up number) is “limited” but not especially consoling, for instance. Kudos to MGM, though, for having kept credit card and bank account numbers out of the hands of thieves. That’s something. Lastly, MGM says it “will offer free identity-protection and credit-monitoring services to individuals who receive an email from us indicating that their information was impacted.” That’s a George move and one we applaud. There is no indication whether or not Caesars has done the same thing. It bloody well should.
Casino revenues in Ohio remained robust in August. True, they dipped a percentage point from last year but remained 19 percent higher than before the pandemic. For all of the month, casinos and racinos brought in $195 million. The plurality of that—$26 million—was grossed at racino MGM Northfield Park, easily number one in the Buckeye State despite its slots-only gambling inventory. It jumped 7% from August 2022. Jack Cleveland and Hollywood Columbus (up 2% and flat, respectively) were respectable seconds with $22 million each. Hard Rock Cincinnati slipped 7% to finish at $19.5 million. Hollywood Toledo slid behind slots-only Scioto Downs, $18 million to $18.5 million. Miami Valley Gaming did better than either, with $19 million. Hollywood Toledo ceded 4% but Scioto Downs dropped 6.5%. Miami Valley was flat. Jack Thistledown grossed $15 million, a 3% slippage, while Belterra Park fell 11% to $7 million. Hollywood Dayton surged 11% to $13.5 million, closely followed by Hollywood Mahoning Valley, up 2% to $13 million.
Online sports betting in Ohio created $39.5 million in revenue on handle of $364 million, a nice hold percentage for operators. Market share has already been effectively consolidated, with five operators representing 89%. FanDuel led with $15 million in winnings, followed by DraftKings with $12.5 million. Far back were BetMGM ($3 million), Bet365 ($2 million), Caesars Sportsbook ($2 million) and Fanatics ($1.5 million). Promotional outlays were particularly ineffective for Fanatics, which splurged 40% of its handle on giveaways. Everybody else’s promos were way down in single digits, especially Caesars.
Gambling revenue wasn’t quite so bullish in Maryland last month, where receipts were 2.5% down from last year and -9% from 2019. The overall gross was $155 million, fully 78% of that split almost evenly between MGM National Harbor and Maryland Live. The former made $62 million, down 3%, while the latter took in $58.5 million, up 3%. Horseshoe Baltimore did poorly by its own emaciated standards, grossing $14.5 million, a 16% plunge. Ocean Downs hopped 5% to $9 million whilst Hollywood Perryville slipped 5% to $7 million. That left Century Casinos‘ new baby, Rocky Gap Resort, down 6.5% to $5 million.
Casinos in the Land of Lincoln were booming last month, up 16%, reaching $132 million … albeit off 2% on a same-store basis, indicative of limited cannibalization. Foremost among the Illinois cannibals was The Temporary at American Place, grossing $8 million. Close behind was late-arriving Bally’s Casino, making $7 million from Chicago denizens, impressive under the circumstances if not quite up to the Bally-hoo. As for the other newcomers, Golden Nugget in Danville made $3 million and Walker’s Bluff Casino did a comparable amount. Rivers Des Plaines tumbled 12% but still bested all comers with $41.5 million. Grand Victoria Elgin didn’t suffer, up 2.5% to $12.5 million, while the $11 million made at Harrah’s Joliet represented a 7% upsurge. Hollywood Joliet also rebounded, up 9% to $7.5 million, while Hollywood Aurora was flat at $8 million.
Most of the outlying casinos saw gains, led by the 22.5% vault of Hard Rock Rockford ($6 million gross). Argosy Belle hopped 9.5% to $3 million while Bally’s Quad Cities jumped 10% to $5 million. Harrah’s Metropolis ceded 2% to $5 million and DraftKings Casino Queen slid 4.5% to $6.5 million. Sports betting numbers for the month will be released sometime in our life, we hope.
Jottings: Fueled by football, New York State sports betting swelled to $166 million last month. No surprise, FanDuel and DraftKings were the prime beneficiaries … Alex Meruelo is bullish on Reno. The casino and sports owner has announced a 10-year, $1 billion expansion of his Grand Sierra Resort. A new sports arena and 800-room hotel tower (shown) are at the heart of the project, though the hotel will come last … MGM Resorts International can finally start work in earnest on its Japan megaresort. The $10 billion project received certification from Osaka and MGM hopes to open it in 2029, at which time it should have the Japanese market all to itself … Harrah’s New Orleans topped out its new hotel tower on Oct. 3, moving along nicely toward a rebranding as Caesars New Orleans, a $435 million investment by the Roman Empire. The casino façade already proclaims “Caesars” and a new food court is in place. Opening of the full makeover, originally budgeted at $325 million, is still at least nine months distant … Circa Sports planted its flag in Illinois last month. Circa opened a sports book at The Temporary at American Place, as well as an online book, featuring higher betting limits than its rivals … Let’s not forget Atlantic City, where Nobu is now taking reservations for a January opening of its boutique offering in Caesars Atlantic City. The 85-room hotel is part of a larger, $240 million renovation of Caesars A.C.