If people who contradict themselves contain multitudes, it must be very crowded inside Full House Resorts CEO Dan Lee. Make no mistake: Big Gaming needs a lot more CEOs like him. He’s down to earth and a straight shooter. But Full House’s latest earnings call could have given you whiplash, given some of Lee’s back-and-forth comments about new resort Chamonix, in Cripple Creek, Colorado. One minute he was praising the property, the other making excuses for it. Some of this was understandable, seeing as the opening was botched, coming off a rough start for The Temporary at American Place, in Waukegan (birthplace of Jack Benny), which also had Full House going into spin-doctoring overdrive.
For instance, in re Chamonix, Lee said that it ran into many of the same problems that bedeviled Monarch Black Hawk and Ameristar Casinos in the area, including an insufficiency of labor. If that was the case, why did Full House not anticipate it? Even harder to overlook was Lee bragging on the design of the new pleasure palace, saying it was designed by many of the same architects responsible for Wynncore and Bellagio. “It’s every bit the quality that Wynn [Las Vegas] and Bellagio are and it’s going to be a long-term asset,” he remarked.
Lee then proceeded to throw these same architects under the bus over a design decision that amazing flew right under Full House’s radar. Many of the rooms have non-transparent window paneling (opaque, at minimum) that blocks guests’ views of the Rocky Mountains. Lee had signs posted in the rooms with a free-play offer that also read: “Sorry we blocked your view. Our architect screwed up.” That’s just not cricket.
Also, Lee and CFO Lewis Fanger said they deliberately opened Chamonix (last Dec. 26) during a slow part of the year. How then to explain being caught flat-footed by frozen pipes, falling ice and other mini-debacles. Fanger said gamblers and other inconvenienced guests would be happy when they returned to Chamonix this year … but aren’t those a lot of wasted comps FLL wouldn’t have to spend if it had gotten it right the first time.
Speaking of getting it right, Lee and Fanger gave Wall Street a refreshing dose of truth when they basically told the analyst community to go suck eggs for constantly clamoring for immediate results from brand-new casinos. “I sometimes think the analyst community is focused on, ‘What’s this quarter’s earnings?’ I’m trying to get the steakhouse open. I’ll get back to you,” said an understandably exasperated Lee. Added Fanger, “People tend to forget that these casinos, their best months are not their first 12 months of operation.” Indeed, the cash spigots that have been turned on in Cripple Creek and Waukegan should keep Full House afloat for a long time to come. The Street’s incessant short-term fixation has been the ruination of some fine companies. Let’s hope Full House isn’t one of them.
By the way, there was a delicious Lee diss of Bally’s Casino in Chicago. The CEO couldn’t help observing that The Temporary had lost a number of employees to Bally’s when the latter opened—and that most of them came right back. He also practically yawned at the newbie, saying it was too far away to be a competitor. Read it and weep, Soo Kim.
A similar theme was sounded by Rush Street Interactive CEO Richard Schwartz during the latest earnings call. When one sniveling analyst tried to worm a stock buyback or dividend out of the company, Schwartz shut him down: “We’re going to invest the cash for the highest return.” CFO Kyle Sauers piled right on, saying, “There will be plenty of places to make smart investments. That’s the first priority for us.” Note the stress on investment. RSI is another company with a sound business model, and Schwartz and Sauers were unapologetic about prioritizing Latin America, etc., rather than the U.S. as their catchment area. They’re not unappreciative of what the U.S. has done for them, but the intensity of both competition and taxation are taking their toll. Rush Street is going to dance with the gal that brung them, and if that means learning Spanish and Portugese, so be it.
Flatness was the order of the day for casinos in Missouri last month. They grossed $157 million, even with the year before (but 17% higher than before Covid-19). Although visitors came 2.5% less often, their spending was 2.5% higher, so it’s all good. Hollywood St. Louis continued to chip away at Ameristar St. Charles. The former was up 7% to $21 million, the latter down 6% to $24 million. Elswhere in the St. Louis area, River City slipped 2.5% to $20.5 million whilst Horseshoe St. Louis dipped 2% to $12 million. On the other side of the state, Bally’s Kansas City resumed stealing a march on the competition, up 9% to $11 million. Ameristar Kansas City hopped 6.5% to $17 million and Argosy Riverside ceded 2% to $13 million, while Harrah’s North Kansas City was flat at $13.5 million. To the south, Century Casinos had a setback in Cape Girardeau ($6 million, -5%) but not in revamped Caruthersville ($5 million, +5%).
Our man on the Boardwalk made a couple of visits to Atlantic City recently. The first was to Hard Rock Atlantic City, whose newly enlarged high-limit slot room (the biggest of its kind in A.C.) debuted recently and is seen above. The Hard Rock swag was disappointing: a “full-zip hooded sweatshirt,” emblazoned with a Hard Rock decal that would probably come off unless you washed it very carefully. “I hate to be picky, but this ‘sweatshirt’ is so thin, you won’t be doing any sweating when you wear this,” adds our correspondent, who endorses the chow at Icon Lounge at Hard Rock. You might want to put off a visit to the Hard Rock beach bar, though. It’s been closed due to storm erosion that wiped away as much as 10 feet of cliffside. Adds The Press of Atlantic City: “Casino security worked with police last summer to increase patrols and safety on the beach and Boardwalk, so people would feel safe going to and from the beach bar and casino.” Unsafe in Atlantic City? Whatever gave them that idea, Mayor Small?
Oh, and a rest stop on the Garden State Parkway will be renamed in honor of Bruce Willis. Suggests our scribe, “perhaps they could get Kelsey Grammer to re-open the place.” Ouch!
Jottings: Unless you were living under a rock, you know that the Academy Awards were last night. We went 18-for-23 in our fearless forecast and will try to do even better next year … The news media continues to gush over the renderings released for the new Potemkin village, er, Oakland Athletics vanity ballpark. Don’t dwell on such things as the fact that the stadium is supposed to face west and yet, somehow “direct sunlight is blocked.” Just remember that when you’re squinting into the setting sun from center field … Unless Gov. Glenn Youngkin (R) comes to his senses and vetoes it, Virginia legislators have passed a bill that re-legalizes the black market slots that were outlawed last year. The thirst for new tax revenue overrides all other considerations, evidently … That cesspool of casinos, Cambodia, may finally be cleaning up its act. The government there has stopped issuing new licenses and we might (repeat, might) pull existing ones. It’s a good start … Genting Group has dramatically upped the ante for a New York City casino, proposing a $5 billion megaresort where Resorts World New York now stands. The prohibitive offer would entail 1,600 hotel rooms, a 7,000-seat arena, the East Coast’s biggest charging station for electric cars and 3,000 new housing units for the workforce. Aqueduct Racetrack would be demolished and its meets displaced to Belmont Park. Since New York State Gov. Kathy Hochul (D) has already approved the relocation of the horse races, Genting would now seem to have several legs up on the competition … Live Bossier City is belatedly seeking minority subcontractors and vendors. Cordish Cos. started on the project before putting these gigs out to bid …
Las Vegas‘ loveliest casino, The Rio, is now flying solo but has picked up a tailwind in the form of an alliance with Hyatt Hotels Corp. Customers in the Hyatt chain can now rack up points toward a Rio stay. New owner Dreamscape is in the midst of a $340 million refurbishment of the place and will anchor the casino-hotel in Hyatt’s Independent Collection … Palace Station will become more flavorful this spring. Popular Vegas restaurant Lindo Michoacan opens a branch within the casino-hotel at an undisclosed date. Said Palace GM Lee Torres, “The addition of this beloved Mexican restaurant reinforces our commitment to offering our visitors an unparalleled culinary experience and we’re excited to be a part of their expansion, providing both locals and visitors with an exceptional dining option that celebrates the vibrant flavors of Mexico.” … Not too far away, Middle Eastern food is making its debut at Wynncore, courtesy of Safta. Expect lots of hummus—and Jello … Chicken Ranch Casino, in California, is now hiring for its new, nine-story hotel. The 200-room facility is said to boast “breathtaking” views of Yosemite National Park … At a time when casinos are shedding poker rooms, Potawatomi Casino Hotel in Milwaukee is adding a 14-table one. It’s debuting Wisconsin‘s first permanent sports book, part of a $190 million makeover. “In all my years in the gaming industry, the opening of the sportsbook and poker room has to be the most exciting time in my career,” stated CEO Dominic Ortiz, who may need to get out more … Michael Gaughan‘s Mesquite Gaming isn’t sitting on its assets, either. It’s investing $6 million in an upgrade of CasaBlanca Resort that will include expanding the slot floor and adding a sports bar … Since Bally’s Corp. won’t bar smoking from its monopoly casinos in Rhode Island, do players have an alternative? Yes, they can now play online from the comfort of their smokeless homes, praise be … MGM Resorts International did the responsible thing when an ultra-rare Yellow-bellied Loon came to visit the Bellagio lagoon. To accommodate the rara avis, MGM shut down the famous fountains—indefinitely. We heartily approve.