Author: David Mckee

Rumors of Atlantic City‘s imminent demise—mostly spread by Big Gaming itself—proved exaggerated last month. Casino revenues ticked up 2.5% to $236.5 million. Table play, up 14%, carried the Boardwalk, as slots won 1% less. And one less weekend day didn’t even hurt. Golden Nugget had a bad month, however, falling 13% into last place with $10 million. Volatile Caesars Atlantic City, by contrast, had a bully March, shooting up 17.5% to $19.5 million. Scarcely outdone was Borgata, vaulting 15% to $67 million. Some of that evidently came at the cost of Hard Rock Atlantic City, down 4% to $42.5 million. Ocean Casino Resort rounded out the top three with $35.5 million, up 2%.

Continue reading Hope for Atlantic City, Crisis at Caesars

First, the good news. That “inclusive pricing” strategy that the Las Vegas Strip filched from Downtown is working. The bad news is that it will probably be quickly abandoned, turning a promising recovery in Las Vegas into an anemic one, at best. Given all the misguided economic “policy” coming out of Washington, D.C., a nascent Vegas bounce-back could yet be smothered in the crib. It’s not like those fellows ever bankrupted a casino, is it? Oh, wait …

Continue reading A Mild Vegas Recovery Ahead?

There’s a fundamental flaw to Las Vegas‘ “Soak the Rich, Screw the Poor” business model. Somebody has to fill that preponderant number of hotel rooms (over 154,660) and gambling positions (too many to count). And the “Epstein class” isn’t going to stay at Circus Circus. But there’s hope. Maybe it’s recognition of our K-shaped economy, so called for the widening gap between rich and poor it manifests. Or, more likely, it’s the one-two punch of customer discontent and adverse media coverage of things like $13 candy bars at MGM Grand. Either way, there are signs that Big Gaming is finally waking up to the repulsive, anti-value message that Sin City has latterly presented to the public.

Continue reading Mixed Signals in Vegas

Delegating its CFO and vice president of investor relations, Churchill Downs packed them off to Boston to meet with J.P. Morgan stock analysts. The company is feeling high as a kite about Kentucky Derby prospects, to the point where it provided first-ever revenue guidance on the event: as much as $20 million in cash flow. Half of that reflects a deal with NBC to carry the race in prime time. “While there’s minimal downside risk to the low end, upside to the high end could come from wagering growth,” predicted analyst Daniel Politzer. Normal weather—unlike last year—would help, too.

Continue reading Visiting with Wall Street

Nothing sends those two twin vermin, Kalshi and Polymarket, scuttling to their rat holes like the threat of congressional action. In case you missed it, Sens. John Curtis (R) and Adam Schiff (D) have introduced a bill to get prediction markets the hell out of sports betting. Evidently sensing the seriousness of the moment, Kalshi and Polymarket promptly announced that they were going to put safeguards in place to ban insider trading. This is unlikely to satisfy the Senate’s bipartisan duo (we hope it doesn’t), but it shows how out of control event-contract wagering has become.

Continue reading Rats Cornered; Sherrill Finks Out