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Freezing in Pennsylvania, hot in Michigan

Taking a sharp dip in the harsh month of January were Pennsylvania casino grosses. The $252 million of revenue represented a 12% falloff from last year and a 1% dip from 2019. Factor out newer casinos and the picture worsens: -13% from 2023 and -18% from 2019. With the exception of Parx Shippensburg ($2.5 million, +438%), everybody got walloped and some pretty hard. Parx Casino led the state with $44 million but took a 13% hit. Other Philadelphia casinos fared better with the exception of Harrah’s Philadelphia, which plunged 21.5% to $10.5 million. Valley Forge Resort inched a few dollars ahead of Harrah’s (above), grossing $10.5 million, while Live Philadelphia ($20 million, -9%) bested Rivers Philadelphia ($18 million, -8%).

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Atlantic City feels chilly; Old dog, new tricks

Those scenic beaches of storied Atlantic City felt January’s cold winds last month, down 3% to $205 million. Table game play was actually more aggressive, with casinos winning 3% more ($59 million) and 6% bigger volume of wagering. But slots took that back and more, as revenue fell 6% to $143 million and coin-in declined 6% as well. But casinos did 16% better than in 2019. So things could have been a great deal worse.

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“Dreams do come true in Vegas”

Bobby Vegas: Friends Don’t Let Friends Play Triple-Zero Roulette

People come to Vegas often wanting to fulfill a fantasy, such as winning a million, living the high life, or experiencing their favorite celebrity. Well, here’s mine.

Let’s dream big — like hanging out with superstar Bruno Mars in a posh bar and lounge he curated. One that feels like some luxe fantasy-penthouse sunken living room in the round, saturated with some out-of-this-world live and DJ music and then (heck, let’s go for broke) toss in dancing with Janelle Monae and her friends on an intimate carpeted dance floor.

Oh wait. I did that. On a Monday night no less. With a few close friends —
maybe a couple of hundred of them.

This is Vegas, baby! At. Its. Best.

Monday wasn’t just the day after the Super Bowl. It was opening night of Bruno’s ultra-lounge, the Pinky Ring, at Bellagio. And as a major Bruno fan, I had to be there. No matter what.

For those not in the know, “Pinky Ring” is from Mars’ iconic worldwide smash hit “24K Magic” and the now-unforgettable line, “Players, put your pinky rings up to the moon! Girls, what y’all tryna do?”

You can go rock with the Super Bowl champions and Marshmello. Fine with me. This, however, is my fantasy come true and as Bruno declared on Monday, “This is it! And you’re never gonna hear anything like the Hooligans. I’ve traveled all around the world with these guys and they are tight!”

No doubt.

I was shocked and incredibly excited to learn that Bruno Mars was going to bring his own personal style to a venue that’s so special and intimate, it’s hard to believe that the Master of 24K Magic was sitting a mere 30 feet away, while we mortals got down to some fantastic beats blasting out of his killer band.

The super-tight Hooligans run the gamut from jazz-infused funk jams to epic covers, from Curtis Mayfield and Michael Jackson to Motown classics or Cheryl Lynn’s “Got To Be Real.” And man, do they lay down the groove.

The pre-opening Saturday night was a private star-studded event with Janelle Monae singing “Tightrope” in a duet with Bruno, all while Lady Gaga, T Pain, and others rocked along.

Oh, did I mention all his Grammys are on display as you walk in?

Though there’s no guarantee Bruno will sing, he did two numbers on Monday, including Marvin Gaye’s “Let’s Get It on.”

So beat feet to Bellagio and be sure you catch this stellar experience. The Hooligans are playing for two weeks, through Sunday the 25th. Other guests drop in, like Lady Gaga’s bandleader and horn player Brian Newman, sometimes even Bruno.

The Pinky Ring opens at 5 p.m. and closes at 2 a.m., 3 on the weekends. The music starts around 9. Arrive early for the great DJs and dancing, where you’ll find me. Tables for two or four go quickly. Seatings are for two hours and minimum spend is a ridiculously low $75 per person. And like his show, no phones or videos. What happens in the Pinky Ring stays in the Pinky Ring.

There’s some standing room only. And that, for now, is free.

Be there. You’ll never forget it.

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Penn underperforms, as does Louisiana

Did somebody screw the pooch at Penn Entertainment? It appears to have flubbed its ESPN Bet launch, judging by its 4Q23 numbers, which were an interactive bath in red ink. J.P. Morgan analyst Joseph Greff called them “much (much) larger … than what we were expecting … We think investors were bracing for a wide range of Interactive losses, but the magnitude of the absolute dollar value is, we think, surprising.” He had anticipated a loss of $180 million (the Wall Stree consensus was $151 million) and Penn came in -$334 million. Wow. We knew ESPN Bet-related promos had been—well, the word “generous” is inadequate. But we never anticipated this. And when you’ve lost Greff you’ve lost Wall Street.

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Boardwalk betrayal; Mega-Jottings

Atlantic City dip; Another strike in Motown?

Looking forward to a smoke-free day in Atlantic City? Better forget about it, at least if state Sen. John Burzichelli (D) gets his way. In a stunning betrayal of casino workers, he’s proposing a bullshit ‘reduction’ of casino smoking areas that would make even fewer allowances for health than the industry plan put forward by sock-puppet state Sen. Vince Polistina (D). While table games would be in enclosed spaces staffed by “volunteers,” it’s basically open season on slot workers and customers: “it would allow smoking in unenclosed areas of the casino floor that contain slot machines and are designated as smoking areas that are more than 15 feet away from table games staffed by live dealers.” In order words, casino employees are so many human sacrifices for Big Gaming’s Trenton pawns.

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MGM “confusing”; January the new cruelest month

Perplexity was the mood of J.P. Morgan analyst Joseph Greff when confronted with MGM Resorts International‘s 4Q23 numbers, as “there were lots of moving parts.” Cash flow came in 1% higher than expected and Las Vegas Strip-derived cash flow of $864 million was way above Greff’s $794 million forecast. However, he discounted $50 million of that due to high hold percentages in table games (read: players were exceptionally unlucky). Macao generated cash flow of $262 million where Greff had expected $236 million. And regional cash flow—$233 million—well undershot Greff’s anticipated $264 million, J.P. Morgan having admittedly underestimated the hit MGM Grand Detroit would take from last autumn’s strike. Greff’s price target edged up two dollars to $54/share, a conservative move.

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Boyd “surpasses”; Keep on rocking in the Free State

Using words like “strong” and “easily surpasses forecasts,” Deutsche Bank analyst Carlo Santarelli gave Boyd Gaming a thumbs-up for 4Q24. This was despite a “cautious tone” in the previous earnings call and “choppy” regional performance in the most recent quarter. Looking ahead, Boyd management highlighted “areas of concern in a prudent, but not overly draconian manner.” But on Wall Street you’re only as good as your last quarter, so let’s see what it divulged.

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Wynn, Station dominate; Illinois collapses

Thanks in part to a boost from the Las Vegas Grand Prix, high-end Wynn Resorts was able to “squash forecasts,” according to an impressed Carlo Santarelli of Deutsche Bank. His price target on WYNN stock leapt from $124/share to $132 on the strength of a 4Q23 that surpassed Wall Street‘s expectations. (J.P. Morgan analyst Joseph Greff added $5 to his $113/share price target.) Wynn Resorts brought in fourth-quarter cash flow of $632 million, $69 million more than Street analysts anticipated. Wynn’s Macao assets outperformed, with the older ones achieving 74% of pre-Covid cash-flow volume: “We believe this is likely to put to rest some of the structural concerns around the Peninsula in general.” The company’s Chinese flotilla also maintained its share (14.5%) of the mass market.

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Maryland drops; Koch caper; Borgata escapes

While gamblers in Ohio were playing more than ever, citizens of the Free State cut back their play substantially. Maryland casinos were down 8.5% last month and nobody came out ahead of the game. Despite slowing 9%, MGM National Harbor comfortably led with $66 million. Maryland Live suffered much less, down 2.5% for $57 million. Still wilting is Horseshoe Baltimore, -17% to $14.5 million. That waterfront location has backfired rather sadly. Ocean Downs was down 13% for $6 million and Hollywood Perryville slipped 7.5% to $6.5 million. Century Casinos‘ takeover of Rocky Gap Resort has coincided with a declivity in its fortunes, with January bringing a 36.5% collapse to $3 million. The only consolation was that Maryland gambling halls were still doing 12% better than in 2019.

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Sands “solid”; Ditto Ohio; Boardwalk notes

Fourth-quarter results from the far-flung empire of Las Vegas Sands were lauded by J.P. Morgan analyst Joseph Greff as “solid.” He wrote that they “should be viewed favorably in relation to recently subdued investors’ expectations and China-macro-concern-driven awful investor sentiment.” Looking ahead to this year and the next, he projected continued mass-market-propelled growth for Sands in both Macao and especially Singapore (which is really driving the bus right now), where Sands enjoys a duopoly.

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