Author: David Mckee

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Why is this man smiling?

Could it be because MGM Resorts International CEO Bill Hornbuckle came justhisclose to being S&G‘s Executive of the Year? Could it be for his vigorous pursuit of diversity within the lion’s house? Might it be for MGM’s very proactive “Convene with Confidence” anti-Covid program that promotes safe meetings and conventions with innovations like in-room testing? Perhaps it is for being the first Las Vegas CEO to drop the hammer and mandate Covid-19 vaccinations for salaried employees? Or maybe it’s for a canny string of real estate deals, culminating in the $1 billion sale of The Mirage, that have left MGM awash in liquidity?

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Congratulations, Las Vegas

Regardless of what happens next week, you have a football team with a winning record in the Las Vegas Raiders, who snared a potential wild-card playoff berth with a last-second win over the favored Indianapolis Colts. After hitting a 6-7 nadir against the Kansas City Chiefs, the Raiders got their act together and started winning when it counted. Cleveland … Denver … Indianapolis … it hasn’t been pretty but they’ve done it and we have to tip our cap to the Silver & Black for returning from a near-death experience. A playoff spot isn’t in the bag just yet but if the Los Angeles Chargers (currently ahead in their game) hang on to win, Allegiant Stadium gets treated to a winner-take-all tilt next Sunday. If the Chargers lose today, the Raiders are—we think—in the playoffs but somehow it would be a fitting reward for Las Vegans if their team were playing for all the marbles next Sunday night at home. In so many ways it’s been a season Raider Nation would sooner forget but it’s ending memorably.

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Las Vegas explodes

But in a good way. Despite having one less weekend in which to gamble than in 2019, gaming revenues were off the charts last November. The Las Vegas Strip vaulted 46% to $755 million and locals revenues, expected to level off, instead catapulted 45% to $263.5 million. Some of the latter was fattened by end-of-October slot win, not tallied until the following Monday. Statewide, the leap was 41% to $1.3 billion. The magic number for the Strip was a 45% increase in baccarat win (remember, more international players were allowed into town) on 35% more wagering plus tighter hold. Strip slot win—$408 million—was a 47% jump on 31% more coin-in (and 9% hold), while non-baccarat table games rallied 45% on 35% larger betting and tight hold.

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Programming note

Due to a mysterious fatigue, my doctor has put me on bed rest for the remainder of the week. That means no S&G. Fortunately, it’s been a glacially slow news week, unless you count the passing of former gaming regulator (and U.S. senator) Harry Reid, who succumbed after a plucky battle with pancreatic cancer. What the Mob couldn’t do with a car bomb decades ago, carcinogens did. At least he lived just long enough to see Las Vegas‘ airport renamed in his honor. Rest in peace, senator.

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Borgata behaving badly; Headless body in topless car

On the “george” side of the ledger we find Bally’s Atlantic City, which is offering room rates starting at $29/night through February 28, albeit on “select nights.” Hey, it’s a terrific way to raise awareness of the new-look Bally’s. As for the Stiff of the Week, the winner is Borgata. Let our Atlantic City correspondent tell it: “MGM Borgata is getting cheaper by the day. [My wife] has reservations for a Christmas show this Wednesday night, but we now have a family night out scheduled. When she called MGM yesterday, she was told next week was ‘fully booked’ for comp tickets, and the host she spoke with told her to contact Ticketmaster to buy her own tickets. With 75,000++ tier points (my estimate is somewhere between $7 to $9 per point). She told the host the tickets were only $12 each (seems like a ‘high quality’ show), and she already had tickets for this week. Didn’t matter to them (she doesn’t have any assigned host at MGM).” Bad Borgata!

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Fear and loathing in Chicago; All’s well in Macao; Tribe comes back from nonexistence

It wouldn’t be a fight for a Chicago casino if it weren’t down and dirty—and it is. Bally’s Corp. already sounds desperate, throwing a Hail Mary pass in the form of a report that rival bidders Rush Street Gaming and Hard Rock International would effectively get a tax break by diverting business to their nearby casinos in Des Plaines and Gary, respectively: “Granting the Chicago casino license to an operator with an existing operation in the same market runs the risk of revenue being manipulated away from Chicago to the operator’s financial gain, but at the detriment to the city.”

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Mixed signals in Pennsylvania; Atlantic City casinos get their wish

Despite fewer weekends than in 2019, Pennsylvania casino revenues nudged up 3% last month, albeit not a same-store comparison, what with three new casinos having opened in the interim (that would make it -9%). Slots won $185.5 million and table games $73.5 million. High hold was good for sports-betting revenues, which came in at $85 million ($64 million after promotional outlays) on handle of $762 million, holding up well in comparison to five-weekend October. Internet gambling brought in another $94 million. Alas, only two casinos were revenue-positive for the month, which will continue to fuel fears of saturation (with slot routes just over the horizon). Valley Forge Resort was up 6% to $11.5 million and Wind Creek Bethlehem grew 5% to $41.5 million. No 2019/21 comparisons are available for Philadelphia Live ($16 million), Pittsburgh Live ($8 million) or Hollywood York ($7 million).

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If at first you don’t succeed … sue; Academy Awards odds posted

It’s a tried and true adage of American life that if you can’t get what you want fair and square, take it to court. Case in point: Full House Resorts. Having lost out on the Indiana Gaming Commission‘s selection of a casino developer for Terre Haute, Full House is siccing its lawyers on the IGC, charging it with lawbreaking. And the IGC may have handed Full House a valid case by adjourning in mid-meeting to hold an executive session, something Indiana open-meeting laws expressly forbid. The gist of that secret conclave may never be known but Full House’s proposal went from contender to zero in the interim. Full House’s implication—the fix was in.

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Chicago dog-and-pony show; Raiders get punted by Covid

All three developers jockeying for a Chicago casino trotted out their proposals Thursday “replete with soaring promises of economic jolts, job creation and jackpots for the city’s future casino tax revenue coffers, which are earmarked for its depleted police and firefighter pension funds.” Mayor Lori Lightfoot (D) tried to wax cautious about the glowing promises, which included “an Eiffel Tower for Chicago” but hype was the order of the day-long session. Said Lightfoot afterward, “They look beautiful and they’re saying a lot of things that really, I think, speak to our values, but as you all know, the devil’s in the details and my financial team is going to do a deep scrub to make sure that we understand: Are these projects really viable?”

In an ill-concealed dig at Bally’s Corp. (an acquirer rather than a developer), Neil Bluhm jabbed, “Chicago needs an experienced developer with a steady hand. This is not the time or project for on-the-job training.” The Windy City needs “an experienced team who has done developments like this—exactly like this—before.” Bally’s execs didn’t let that pass. “Yes, we have built casinos from the ground up,” replied Bally’s Chairman Soo Kim testily. Alluding to Rivers Casino Des Plaines, they said they (unlike Bluhm) were free of conflicts of interest in the market. Regardless of which of its two proposals is chosen, Bally’s promised 2,000 permanent jobs and 7,500 construction ones. However, its South Side pitch ran into immediate opposition from Alderwoman Sophia King. Kim promised to be tractable to King’s concerns.

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Atlantic City stutters; Shocker in New Orleans; Palms changes hands today

Casinos in Atlantic City grossed $207 million last month, an 8% declivity from 2019, as players tightened their purse strings. Overall, slot revenues were down 1% on a commensurately lower amount of coin-in. The house played unluckily at the tables, falling 22% on 16% less wagering. For Borgata ($48 million) the numbers were a catastrophic 47% plunge at the tables on 30% less betting and looser hold, compounded by 6% less slot win on 6% less coin-in for a total 18% decline. The Caesars Entertainment threesome tumbled 26%, driven by terrible table win (-47% on 33% less betting) and poor slot performance (-17% on 13% less coin-in). Individually, Caesars Atlantic City plummeted 42.5% to $16 million, Harrah’s Resort slipped 12% to $22.5 million and Tropicana Atlantic City slid 21% to $19 million.

Only two casinos were revenue-positive. Hard Rock Atlantic City skyrocketed 59% to $37 million and Ocean Resort soared 46% to $28.5 million. New-look Bally’s Atlantic City was still down 17% to $11 million, Resorts Atlantic City declined 12.5% to $12 million and Golden Nugget grossed $12 million, a 30% falloff.

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