If you rely on the sleepy, docile Las Vegas Review-Journal for your casino news, you missed a doozy. The local ‘dead tree of record’ still hasn’t picked up on a dispatch from Inside Asian Gaming about the dismal performance of Resorts World Las Vegas. The latter is reeling from its worst quarter since 20222. Between July and September, revenue averaged an unimpressive $59 million a month. Return on investment for the $4.2 billion metaresort fell from an insufficient $50 million per quarter to $15 million. Suffice it to say you’d need an electron microscope to find the ROI in that.
It’s been an ill-kept secret in Las Vegas that Resorts World has been underperforming ever since it debuted in June 2021. Former president (and confessed felon) Scott Sibella tried to make ends meet by running it as an outlaw property, a strategy that has brought owner Genting Group little but grief. Genting’s excuses for Resorts World’s summer swoon ranged from the record heat in Las Vegas to “economic uncertainty in an election year.” That’s a good one. Other Vegas-based casino companies aren’t trotting that line out to explain their Las Vegas Strip performance, although the election-uncertainty excuse has been floated by revenue-challenged provincial casinos.
The bottom line is that Resorts World ain’t doing so hot in the best of times and is just limping along when things get tough. Minimal brand equity, a limited database and an incoherent market positioning will do that to you. Genting, meanwhile, blew smoke up its own ass, proclaiming that “Future projects such as additional dining, entertainment, retail offerings and new performances at the Resorts World Theatre are expected to drive significant foot traffic in the remainder of 2024 and beyond.” If all Genting’s horses and all Genting’s men haven’t gotten it done in three years, what can they hope to accomplish in three months?
Genting’s official business is long on hope for new database acquisitions, particularly of high rollers, and landing convention traffic. At least proximity to the ever-expanding Las Vegas Convention Center makes the second hope sound less than delusional. As for investing “in new dining concepts, entertainment and retail offerings to drive operating leverage,” what the heck has Resorts World been doing for the last three years? It’s awfully late to be rebooting the property. However, unless another, more experienced U.S. operator can obtain this problem child at a bargain price, monetization of the North Strip boondoggle seems remote.
Lastly, a complaint by the Nevada Gaming Control Board continues to hang fire. Genting has until Dec. 9 to respond with its apologia pro vita sua. Faced with the prospect of a stiff fine or even losing its license (admittedly unlikely, if desirable), Genting will probably use its 3Q24 results to plead poverty. It will beg the NGCB to show mercy and not impose any sort of financial penalty that would crimp its style. (We’d say “ability to turn a profit,” but that’s debatable.) Resorts World thumbed its nose at the rules and the marketplace’s indifference to its product is an indirect and somewhat loopy form of punishment. But we’ll take whatever chastisement of Genting we can get. It’s overdue.
At the other end of the spectrum is Hard Rock Bristol, in Virginia. Here’s a casino brand that makes no excuses for its financial performance and doesn’t need to. The Cavalier State permanent casino opened to smash business: 110,000 visitors in the first two weeks and 99% hotel occupancy. $12 million in jackpots were hit. It’s reported to be pulling in customers from as far away as Atlanta (!), as well as from Charlotte and Knoxville. Other Virginia cities were relatively unaffected, with only Roanoke cited as a feeder market. That’s the unofficial Virginia strategy for casinos: Salt them around the borders and pull in out-of-state money. So far it’s working like a charm, with Hard Rock Bristol performing ahead of management’s expectations. Given the industry’s tendency to highball its anticipations, that’s saying a great deal. Congratulations, Hard Rock.
Gambling continues like gangbusters in the state of Ohio. Last month’s gross of $195 million was up 4% from 2023 and 23% higher than in the same period of 2019. This was accomplished without any new casino product, unlike revenue inflation in Illinois and Indiana. Slots-only MGM Northfield Park continues to defy both logic and conventional wisdom, up 5.5% to $26 million for pride of place. Miami Valley Gaming also cracked the top five with $19.5 million (+5%). It bested Hollywood Toledo ($19 million, +6.5%) but not Jack Cleveland ($20 million, -7.5%), Hard Rock Cincinnati ($20.5 million, +8%) or Hollywood Columbus ($24 million, +12.5%). The only revenue-negative racino was Scioto Downs, falling 4% to $17 million. Jack Thistledown was up 4.5% to $15 million, Hollywood Dayton hopped 4% to $13 million, Hollywood Mahoning Valley jumped 6% to $14 million and even Belterra Park (above) gained a point, reaching $7 million.
Sports betting saw revenue of $80 million on $882 million in handle, a 3% gain in winnings at a time when operators in other states were having their brains beaten out by players. Tight-holding FanDuel led with $34.5 million, segued by DraftKings ($25.5 million), Bet365 ($6 million), BetMGM ($4 million), Fanatics ($3 million), Caesars Sportsbook ($2.5 million) and ESPN Bet ($2 million). If Fanatics is besting both the Roman Empire and mighty ESPN, it might be time to get worried.
Black Friday. It may have been past Thanksgiving but there was still a hefty serving of turkey, in the form of the Las Vegas Raiders. The NFL‘s worst team snatched defeat by the underwhelming Kansas City Chiefs from the jaws of victory with a last-gasp fumble that prevented what would have been the game-winning field goal. (It was almost as mind-boggling as the Chicago Bears collective brain cramp that cost coach Matt Eberflus his job.) We’re so over the Chiefs after this but the Silver & Black just can’t back up its big talk with on-field results. Signs of hope for Raider Nation were the presence of legendary Norv Turner as play-caller and a not-coincidental return of the famed Raider vertical-passing offense, which almost—almost—turned the tide. As for alleged mastermind Antonio Pierce, he seems just lucky to have a job at this point. Well, there’s always that #1 draft pick.