Talks are resuming, albeit with an apparent lack of urgency, between the Culinary Union and the Big Three of the Las Vegas Strip. True, MGM Resorts International sits down with the Culinary on Monday. But Caesars Entertainment doesn’t meet with the union until a week from today—and Wynn Resorts not until Oct. 30. Wall Street thought the labor negotiations would be resolved by now. It thought wrong. Golden Entertainment execs look damned prescient for predicting a mid-November resolution. It will take the oncoming prospect of the Las Vegas Grand Prix to focus everyone’s minds—and maybe not even then. Yesterday, someone predicted on X that Formula One spectators would be greeted by the sight of picketing. We replied that it was too close to the truth to be funny. It would certainly get Big Gaming’s attention in a grave way.
Last week, Vice President Kamala Harris (D) threw in the Biden administration’s lot with the Culinary, saying “I wanted to come by and just acknowledge the Culinary workers. I have known their work for years. And they are true champions for working people. And so just came by to say hello to them. And to thank them for standing up for all working people. When they are in this fight, all people, all working people really do benefit. So I applaud them.” We hope President Biden doesn’t need any campaign checks from Big Gaming, ’cause they just went in the other direction. Given the attitude of noblesse oblige emanating from casino bosses in strike-afflicted Detroit, we’re not optimistic about both sides reaching a resolution next week or the week after that … maybe not for a month.
Gambling revenues in the great state of Pennsylvania showed some signs of fatigue, down 2% from last year but still 6% over September of 2019. The statewide gross was $275 million. Internet casinos chipped in another $159.5 million, a 41% vault. Parx Casino seems to be normalizing the effects of banning smoking. It was down 2.5% but led the state with $47.5 million. The rest of Philadelphia‘s casinos, always in the long Parx shadow, were led by Philadelphia Live’s $19.5 million, up 4.5%, while Rivers Philadelphia (above) mustered $17 million, flat year/year. Valley Forge Casino Resort finally caught up with and passed Harrah’s Philadelphia, $11.5 million to $11 million. Outstate, Wind Creek Bethlehem was predominant with $43.5 million (flat).
Pittsburgh saw Rivers Casino fall 6% to $28 million, while Hollywood Meadows tumbled 13% to $14 million and Pittsburgh Live was flat at $9 million. Mohegan Pocono ceded 3% to $17 million, Mount Airy dipped 1.5% to $16.5 million and Presque Isle Downs was down 8% to $9 million. Hollywood Penn National slipped 9% to $13 million while Lady Luck Nemacolin continues to reverse its fortunes following the banishment of Churchill Downs: up 6.5% to $2 million. The remaining satellites produced a mixed bag of results, with Hollywood York down 1.5% to $8 million, Hollywood Morgantown up 6.4% to $5 million and newbie Parx Shippensburg gritting out $3 million.
I-casinos were led by the Hollywood Casino grab bag (DraftKings, BetMGM, Barstool Sportsbook) with $65 million, followed by FanDuel with $35.5 million. BetRivers continues to fade, down to $29 million. Sports betting saw handle of $726 million boiling down to $66 million of revenue, of which there was precious little remaining after $29.5 million of promotional outlays. Whatever happened to all that newfound marketing rationality which Wall Street keeps saying has taken hold? Operators were dominated by FanDuel’s $19 million, with DraftKings a distant second with $8.5 million. Then came BetRivers ($3 million), Parx ($2 million) and BetMGM ($1.5 million). Caesars Sportsbook barely registered and Barstool managed to achieve negative revenue for the month. The end of that partnership can’t come too soon.
Still in a trough are casino revenues in Louisiana, now in their eighth month of declivity. Sports betting showed signs of vitality, up 34% to $43 million won on $280 million wagered. Casinos fared 2% worse than last year but 6% more so when measured on a same-store basis. Whether due to Horseshoe Lake Charles ($7 million) or some other factor, Lake Charles casinos took quite a hit. L’Auberge du Lac wrested top honors with $26.5 million but absorbed a -12.5% chomp. A -19% wallop pushed Golden Nugget into second place with $26 million. Relatively speaking, Delta Downs suffered least, down 4.5% to $13 million. The New Orleans market saw Harrah’s New Orleans slide 10% to $21 million, followed by Boomtown New Orleans‘ $9 million (-6.5%), Treasure Chest‘s $7 million (-1.5%) and Fair Grounds racino’s $3 million (-4%). Reinvention of Hollywood Baton Rouge as Queen Casino saw revenues explode to the tune of +84.5% or $7 million, showing how starved that market is for new product. Ancient Belle of Baton Rouge plunged 21% to below $1 million (a worst-ever showing), while even L’Auberge Baton Rouge got trimmed -5% to $12.5 million.
Up in smoker-friendly Shreveport/Bossier City, an 8% drop in revenue wasn’t enough to keep Margaritaville out of a comfy, $15 million top spot. Horseshoe Bossier City was flat at $10.5 million, while the return of airborne carcinogens was good for business at Sam’s Town Shreveport ($3.5 million, +13%) and Bally’s Shreveport ($8 million, +7%). Boomtown Bossier was up a point to $4 million and Louisiana Downs, faring surprisingly well without Caesars Entertainment, grossed $3 million, +2%. Outlying Amelia Belle was up 4% to $3 million whilst Evangeline Downs galloped 4.5% to $6 million.
Solons are kicking the tires of gambling legislation again in Georgia, with a little help from British corporation Entain (co-parent of BetMGM). They’re looking at sports betting as the soft underbelly of gambling legalization—and why not? Tennessee and North Carolina, both of which adjoin the Peach State, have it. Florida might have it soon. Why be left behind? (Well, because of backward attitudes maybe.) Casinos may be too much of a stretch and even horse racing (of the non-mechanical kind) seems far-fetched. But sports betting in a state that is mad for college football and boasts multiple major league sports franchises … the appeal is obvious, if not a lead-pipe cinch. Expect Entain and its legislative allies to lead heavily on an opinion from former Georgia Supreme Court Chief Justice Harold Melton to the effect that—if run through the Georgia Lottery—sports betting need only pass the Lege to go into effect. Gov. Brian Kemp (R), although a gambling foe, has promised not to stand in the way of retail wagering and OSB, if that’s what the Lege dictates.
The spider at the picnic is the Georgia Baptist Mission Board. Its mouthpiece, Mike Griffin, argues “that just because somebody is doing something illegal does not mean that it should be made legal. Something as detrimental as sports gambling made legal will be like putting gasoline on a fire. It will make something that is already bad, just worse.” Unfortunately, the best counterargument Entain lobbyist Bill Pascrell could make was that legalized, regulated sports betting makes it easier to track addiction, which cedes a lot of ground to Griffin. He and his masters will have to do a lot better than that if they hope to prevail in the next session, even if the time does appear to be ripe.
That’s all, folks. Enjoy your weekend.