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Christmas on the Boardwalk

Our man on the Boardwalk stayed at Borgata last weekend and reports that the property is fully decorated for Christmas, juxtaposing Santa and slots. Golden Nugget is still getting started (way to go, guys) while Bally’s Atlantic City had “some small stuff” on view. That’s the holiday spirit. Not. Speaking of the last-place Nugget, it is requiring players to accumulate 200 tier credits before obtaining a December $25 gift card, which is a big outlay for players. Bally’s, by contrast, “will be offering $125 gift cards eight times, $150 one time, and $175 one time.” That’s mighty George of them.

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Atlantic City surges, PA & LA slide; Peace in Detroit?

Business is still strong on the Boardwalk. Casino revenues of $228 million for October in Atlantic City were 3% higher than last year and a healthy 13% more than in 2019 (and still Big Gaming claims that it can’t make money at the shore). Sports betting leapt 18% to revenue of $92 million on $1.3 billion in handle. And i-gaming generated $167 million, a 13% jump. A poor performance at the slots (-14%) translated into a 9% drop for Borgata, closing out the month with $57 million. But that’s nothing compared to the performance of Ocean Casino Resort, which shot ahead of Hard Rock Atlantic City. Ocean grossed $43.5 million, a +53% moonshot. Hard Rock did a not-inconsiderable $41 million, up 6%.

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Massachusetts flattens; Who’s “irresponsible”?

Massachusetts flattens; Who's "irresponsible"?

Casinos in the great state of Massachusetts grossed $97 million in October, a flat trajectory from last year but a whopping 23.5% higher than 2019. Encore Boston Harbor led with $62.5 million (flat). MGM Springfield slipped 6% to $21.5 million, led by an 11% slide at the tables. Plainridge Park continued its upward trend, gaining 3% to $13 million. High hold enable sports books to bring in $59.5 million on handle of $556 million. Homeboy DraftKings took home 58% of the revenue, with FanDuel settling for 27%. BetMGM was way back at 7%, followed by Caesars Sportsbook (2%) and two other operators apparently too negligible to mention.

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Bally’s flags; Midwest malaise; Boardwalk blotter

That novelty factor wore off quickly for Bally’s Casino in Chicago. The good news for Bally’s Corp. is that the Medinah Temple temporary won $7.5 million last month, good for (distant) fourth place in the state, far behind Rivers Des Plaines. The bad news is for the City of Chicago itself, as the Sun Times reports that the number is “well behind city tax revenue projections for Chicago’s desperately underfunded police and firefighter pensions,” and that the data showed a dropoff from September. There’s also been a 20% decline in visitors. We warned Chicagoans that then-mayor Lori Lightfoot had absurd numbers dancing in her head. If the rescue of those pension funds relies on one casino, they’re screwed, sad to say.

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Win at Wynn; MGM roars

It went right until the last minute but there’s a deal in place between Wynn Resorts and the Culinary Union. When negotiations were gaveled finished this morning, Wynn was three hours shy of the Culinary’s 5 a.m. strike deadline. The new pact resembles those achieved with MGM Resorts International and Caesars Entertainment, especially in two crucial (and reasonable): substantial pay increases and reduced workloads for some staff. Big Gaming beat up on labor during and after the Great Pandemic, so it was time to give something back—and it did. Kudos to them and to the Culinary for a masterfully run campaign that said ‘nay’ to the union’s naysayers, including some corporatist lickspittles at the Las Vegas Sun.

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Strike (almost) averted; Durango delayed

Two down, one to go. This morning, the Culinary Union tersely announced the reaching of a tentative deal with leading employer MGM Resorts International. That’s 24 hours after the local declared it had achieved a pact with Caesars Entertainment by dint of a marathon, 20-hour bargaining session. Bleary-eyed CZR and Culinary negotiators reached an agreement at 5:30 a.m. Wednesday. Wynn Resorts remains the lone holdout of the Big Three, with less than 24 hours to the strike deadline and a week before Formula One comes to town. The Culinary was loaded for bear and gaming execs ultimately realized that.

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Election update: Churchill Downs loses big

No really meant no. Voters in Richmond rejected an Urban One casino two years ago by a whisker. Yesterday they buried it in a landslide. As of midnight, what was expected to be a tight race was a rout, with pro-casino forces only mustering 38% of the vote. Late polling had shown the casino ballot initiative trailing by two points. Why the dramatic, 10-point shift in the race? Was it the NASDAQ delisting of Urban One? Was it annoyance at being asked to go through a do-over campaign?

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MGM flops; Bally’s disappoints; DraftKings surprises

Live by the tables, die by the tables. Maryland‘s casinos, as a whole, were down 5.5% from last year. But factor in MGM and that becomes a 25% plunge. MGM National Harbor plummeted 41.5% to $67 million. Admittedly, the year-previous figure was fattened by record table game revenue. But almost 42%? Yikes. Slot play was only off 5% but table winnings toppled 48%. Despite the revenue implosion, MGM held onto first place, as Maryland Live dipped 3% to $58 million.

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Election Special; Trump testifies; Stitt’s stupidity

Police blotter; Racism in Richmond vote?

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.

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Are the good times over?

A sobering report on the economic future of Caesars Entertainment and, by extension, Big Gaming in general, appeared (aptly enough) on Halloween. Deutsche Bank analyst Carlo Santarelli penned gloomily that “What was once an outlook/bull case … has given way to concerns around the impact of a looming recession and a deteriorating U.S. consumer. We have believed and continue to believe that the cyclical peak for CZR, and others exposed to the LV Strip and domestic drive to markets, has passed …” Santarelli swiftly dismissed the Roman Empire’s 3Q23 results as not “overly meaningful,” as they merely confirmed that regional casinos are challenged but Las Vegas “remains resilient.” He chopped his price target on the stock from $70/share to $60 but kept a “Buy” rating on CZR.

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