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Vegas remains resilient; NFL reverses field

Vegas remains resilient; NFL reverses field 1

August was an unremarkable month, in terms of percentage changes in Las Vegas‘ gambling scene. The Las Vegas Strip was a point up from last year (to $667 million), locals casinos a point down ($247.5 million). That being said, it was the biggest August that Sin City has ever seen. Strip slots won 3% more despite 1.5% less coin-in, while non-baccarat table games dipped 1.5% on 5.5% less wagering. The difference maker was baccarat, where the house played lucky. Win leapt 24% on 6.5% larger betting. Locals slot revenue slipped 3.5% on 3% less coin-in, while tables jumped 15% on marginally (-1.5%) lower wagering. Compared to 2019, the Strip vaulted 28% while the locals numbers were a 40% moonshot. Visitation to Vegas was up 4% to 3.3 million, if still 7% below 2019 numbers. Occupancy levels in hotels averaged 80% (90% on weekends, 77% midweek) but convention trade (647,000 souls) was booming, up 64% from the previous autumn. Another major differentiator was air traffic, up 4% from 2019, if flat from last year.

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Culinary solidarity; Diversity in danger

Culinary solidarity; Diversity in danger 4

In the end, it wasn’t even close. 95% of Culinary Union members voted to authorize a strike (no date set) against 22 Las Vegas Strip casinos. Was a different outcome expected? Frankly, no. Mind you, casinos have no one but themselves to blame for the overwhelming plebiscite. Big Gaming used the Covid-19 pandemic as a catchall excuse to downsize service and employees, while simultaneously upsizing profits—which they weren’t shy about publicizing. To say that didn’t sit well with Culinary members would be an understatement. Add the casino industry’s complicity in the Las Vegas Grand Prix fiasco, which is making life miserable for the average Las Vegan, and you have all the makings of a “yes” vote on a potential labor action. That being said …

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You can’t fix stupid; Good-bad news on the bayou

You can't fix stupid; Good-bad news on the bayou

We live in an era of “alternative facts” and “false flag” narratives and, boy, are we the worse for it. It was only a matter of time before the gaming industry was on the receiving end of “false facts” and it’s happening, quite unfairly, to Bally’s Casino in Chicago. No, not the permanent megaresort that’s to go up on the city’s west side. We’re talking about Medinah Temple (above), best known as the former hangout of the Shrine Circus and venue for many of the best-sounding Chicago Symphony Orchestra recordings. What it isn’t—and never has been—is a mosque. But don’t let the truth stop a bunch of casino-hating, Islamic fanatics.

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If you can’t beat ’em, cheat ’em; Fun & games

No, this isn’t about politics. Or maybe it is. Either way, it’s another chapter in the crony-capitalism, juiced-in deal Washington, D.C.’s puppet government made with Intralot. Along with the Washington D.C. Lottery, Intralot is parent of that malign progeny GamebetDC. The latter recently changed its rules, suddenly imposing bet limits. It claimed to be motivated by problem-gambling worries. The real reason turns out to be that sharps were finding weaknesses in GamebetDC and using them to beat the system at sports wagers. Good for them! Not good enough for our nation’s capital, however …

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Pennsylvania soggy; Epic fail in North Carolina

At first blush, Pennsylvania‘s gambling economy looks all right, up 1% from August of 2019 and 2% from last year. But factor in the plethora of new casinos that have entered the fray and the Keystone State is down 14% from 2019. Clearly, more casinos does not equal more money. At least not if you’re casino owner. For a tax collector it’s a different story. Not even a 5% uptick in table game winnings (or losses, if you happen to be a player) could paint a smiley face on the portrait, despite $286 million in casino win.

Despite being absolutely flat in revenue, Parx Casino held onto its top spot with $50 million in takings. Wind Creek Bethlehem made a brave run at statewide supremacy in July but had to content itself with $45 million and a 10.5% upsurge. Only a few dollars separated Rivers Philadelphia (pictured, +10%) from Philadelphia Live (+4%), deadlocked at $19 million in their seesaw struggle for downtown supremacy. Harrah’s Philadelphia tumbled 15% but remained ahead of upstart Valley Forge Resort (-4%), $12 million to $11 million. To the west, Rivers Pittsburgh (+4.5%) regained market share for $29 million, outpacing Hollywood Meadows ($17 million, +5%) and Pittsburgh Live ($9 million, +1.5%).

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Sibella scandal spreads; Supremes forestall Seminoles

Flinging Resorts World Las Vegas CEO Scott Sibella to the wolves might not have saved Genting Group‘s bacon—and may have inflicted collateral damage on MGM Resorts International. According to the New York Post, the Sibella revelations have upset the once-universal assumption that Resorts World New York and MGM Empire City were juiced into casino licenses when ones for the New York City area are (eventually) awarded. Contacted by the Post, Genting elaborated on its previous comments in re Sibella by saying that he was given the chop for  “failing to disclose certain information required under company policies.” Which deepens the mystery rather than explaining it. Genting’s gnomic statement was not elaborated upon.

Although the Post thinks Genting, by scapegoating Sibella, is out of the woods, new evidence (see below) suggests otherwise. The paper continues, “The picture may be more complicated for MGM, which now may have questions to answer about what happened on Sibella’s watch several years ago.” That’s as it should be … but why would Resorts World, where the malfeasances were more recent, get a free pass? “Ethics is going to be a huge deal in deciding who gets the licenses,” said a Post source. “The ethics and the relationships with the communities where they are putting their casinos is where this is going to be fought and won.”

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Atlantic City rebounds; Sibella dumped; NFL suspicions

Dueling pianos amuse the oldsters at Ocean Casino Resort

Casinos in Atlantic City were up 2% in August, reaching $280 million. Slot winnings were 3% higher, on a commensurate increase in coin-in. The gambling halls weren’t so lucky at the tables, where 5% higher wagering translated into flat win. There were a few have-nots, with Bally’s Atlantic City ($15 million), Tropicana Atlantic City ($25 million) and Resorts Atlantic City ($17.5 million) all slipping 4.5%, while Harrah’s Resort ($24.5 million) ceded 2%. Both Hard Rock Atlantic City ($51 million, +11%) and Ocean Casino Resort ($39.5 million, +8%) were turbocharged, and put even further distance between themselves and the Caesars Entertainment threesome. The only one of the latter to post a gain was Caesars Atlantic City ($22 million), up 1.5%. Borgata, of course, was the dominant property with $73 million to its name, a 1.5% uptick. Golden Nugget remained stuck in last place with $13 million but also gained 1.5%.

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On and off the radio

During this morning’s stint on KNPR-FM‘s State of Nevada, we were only able to cover a fraction of the scheduled questions. So we had the idea of answering here what was not asked there. Let’s take it away …

Why do you think hackers targeted a major casino company over, say, any other multibillion-dollar company?

Because, as Willie Sutton famously said, “That’s where the money is.”

What MGM Rewards member data might the hackers be so interested in?

What aren’t they interested in? Every bit of personal data that they can get their grubby mitts onto. If we were an MGM Rewards member, we’d be changing computer passwords, etc., nonstop today.

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MGM crippled; Illinois & Indiana report; Bally’s shaky in Chi

Different day, same story for MGM Resorts International, brought to its knees by a cbyer-assault of still-unknown provenance. The FBI has been brought in although, per standard operating procedure, the G-Men aren’t commenting on what went down. MGM is daintily referring to the attack as a “cyber issue,” but its 28 casinos nationwide may face a long road back to recovery. UNLV‘s Yoowhan Kim is of the firm opinion that it was a ransomware raid that MGM was asked for “several million dollars” to resolve the ‘issue,’ one that may have been years in the making. Kim delicately implies that a cost/benefit analysis will come down in favor of paying up.

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MGM paralyzed; DraftKings debacle; Mount Airy wins

In a new kind of September 11 attack, MGM Resorts International was felled by a massive cybersecurity breach. From disabling digital room keys to kneecapping credit card systems (forcing transactions to be made in cash), it sent MGM back to the mid-20th century. The company Web site had to be taken offline, internal communications were disrupted and—worst of all for some—slot machines were silenced by the thousands. The higher the tech, the worse the vulnerability. For once, nostalgia for Olde Vegas was justified. The Cosmopolitan of Las Vegas was spared because it hasn’t been fully integrated into MGM’s master systems yet.

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