Author: David Mckee

News outlets covering the stretch drive of Richmond‘s controversial Urban One/Churchill Downs casino proposal report a “razor-thin” margin for whoever wins, aye nor nay. In an atmosphere like this, missteps could be killers. And boy, did Urban One step in it big-time. A radio show on Urban One, hosted by Urban One founder Cathy Hughes, became a megaphone for racism in the cause of casinos. Appearing on The Box 99.5, guest host Preston “Famous” Brown smeared casino adversary Paul Goldman as “a white Jew with the background of Judas.” The Box quickly backpedaled. “These statements were horrible and offensive. Once we heard the comments and because he was alone in the studio with his producer, I personally drove to the station and immediately removed him from the show. He will not be appearing again,” said Radio One Regional Vice President Marsha Landess. However, apologies from Urban One CEO Alfred Liggins and Landess may not be enough to undo the PR damage at this late date.

Casino revenues for September are in and they bode well for Las Vegas Strip casinos and rather concerningly for everyone else. The Strip carried the state to a 2% increase to almost $1.3 billion for the month. Strip gambling palaces grossed $741 million, a 7% jump. Baccarat winnings vaulted 88% on high hold, despite 2% less play. That more than made up for less slot play (- 4%), which brought in $383 million. Table wagering was off 7% win was 3% higher, to $211 million. “If we normalize both the low hold in September of 2022 and the high hold in September of 2023, [gross gaming revenue] would have been down ~3.2% Y/Y, though, given the cyber security event, this should not be surprising,” argued Deutsche Bank analyst Carlo Santarelli. Isn’t nice how an MGM Resorts International/Caesars Entertainment cyber catastrophe can be normalized as a mere “event”?

Our august Supreme Court had the chance to decisively outline the parameters of the Indian Gaming Regulatory Act—and blew it. SCOTUS had been petitioned by parimutuel owner West Flagler Associates to block implementation of Florida‘s compact with the Seminole Tribe, one which gives the Seminoles exclusive rights to sports betting in the Sunshine State. The highest court voted 8-1 against hearing West Flagler’s appeal, made after activist appellate judges redefined “tribal lands” in IGRA as extending throughout cyberspace, which neatly turns the Act on its head. Only Justice Brett Kavanaugh realized that there were bigger issues at stake and was acutely aware of the IGRA contradiction. Would that he was not alone. The compact, he wrote, also “raises serious equal protection issues.” We’d like to hear those litigated and there’s a chance that West Flagler will get another bite at the SCOTUS apple, although the chances seem bleak. The Seminoles have been green-lit to start taking sports wagers and once that particular ship has sailed it will be difficult to sink it.

It’s business as usual in Atlantic City. For example, it’s no wonder that the Golden Nugget (pictured) is at the bottom of the burg’s casino pile. Our man on the Boardwalk visited the Nugget recently and was charged a steep $90 in resort fees—for a comped room, no less … MGM Resorts International needs to be more George with its Las Vegas Grand Prix guests. It recently sent out an offer for four-day race tickets, free Wolfgang Puck food, opening-ceremony access—but only $40 in free play. That’s not going to attract the big spenders. Maybe event barkers are succumbing to their own hype that gambling revenue is going to triple (we’re not making that up) during Formula One weekend … Bally’s Corp. has quickly redubbed short-term Bally’s Casino as Bally’s Chicago. They’re promoting it to their customer base via Bally’s Vicksburg fliers mailed to Philadelphia customers. As though Vicksburghers are going to fly up to Chicago, especially when no special offers are on the table.

Beating the expectations of the boys on Wall Street was Las Vegas Sands, which reported boffo cash-flow numbers from Macao and Singapore. In the former it did $631 million where The Street anticipated $600 million. In the latter, Sands’ EBITDA number was $491 million. Wall Street expected about $450 million. With 20 bucks a share to make up to hit analysts’ price targets by year’s end, Sands reverted to that tried and true form of price manipulation: share buybacks and $2 billion of them. Wall Street boffins predictably did cartwheels at the news. The bottom line is that the Miriam Adelson clan is going to scarf up 15% of the shares it doesn’t currently hold.