Ohio‘s gaming industry continues to experience woes. Former lottery director Pat McDonald claims to have resigned for reasons of health. Gov. Mike DeWine (R) cites “HR irregularities.” Either way, McDonald’s out abruptly. Top members of DeWine’s staff personally escorted him from the building. Now DeWine has to find a Mr. or Ms. FixIt and soon. For the time being aerospace specialist Michelle Gilchrist is the new occupant of the hot seat. We don’t envy her.
Continue reading Case Bets
Atlantic City‘s first casino, Resorts Atlantic City, celebrated the 45th anniversary of legalized gambling on the Boardwalk in rather limp fashion. Highlights included a beachball drop and an appearance by Mayor Marty Small (D). Well, we suppose he’s got to do something besides be a sock puppet for Trenton. Small was accompanied by Atlantic City’s new resident celebrity, Kelsey Grammer, who was evidently “assistant mayor” for the occasion. Is being a Small sidekick that much of an honorific? To cap the festivities, Resorts rolled out … a tribute band?!?! Yes, it’s the New York Bee Gees, adding to the perception of the Boardwalk as an also-ran destination for entertainers.
Continue reading Atlantic City blues
Gambling revenues in Illinois were jolted 10% upward last month, hitting $131 million. This was driven by 15% greater visitation, customer spend being 4.5% lower. Most of the increase was driven by new product. Otherwise, the boost would have been only 4%. American Place improved markedly, reaching $7 million in its second month, putting it on par with Hard Rock Rockford ($6 million, +22.5%) but still trailing the rest of the Chicago market. Rivers Casino Des Plaines enjoyed a 9.5% bump to $48 million, while Grand Victoria slipped 6% to $13 million. Hollywood Joliet gained 10.5% to $8.5 million, Harrah’s Joliet slid 11% to $11 million and Hollywood Aurora was flat at $9 million. Full House Resorts seems to be executing on its Waukegan business plan to the extent of creating new gamblers, not so much at drawing business from outmoded rivals.
Continue reading Illinois leaps, Indiana falls; Japan awakens; PointsBet blunder
Well, it didn’t take Nevada Gaming Control Board member George Assad long to stick his foot in it. No sooner had we prophetically called him a regulatory “doofus” than news surfaced of some most-unbecoming conduct during an NGCB hearing. Specifically, he whined at length about how his MGM Resorts International stock had supposedly suffered under the regimes of Jim Murren and Bill Hornbuckle. “[Terrence] Lanni had it up from $7 all the way to $96.40 and then Mr. Murren comes in, the stock price drops into the low teens,” Assad whinged. Why the financial performance of a company’s stock became the NGCB’s ostensible purview is anybody’s guess. Steve Wynn, many years back, opined that regulators should look harder at the financial probity of transactions and companies they approve—and we agree. It would have spared us fiascos like the Caesars Entertainment LBO and the Station Casinos bankruptcy, among many others.
Continue reading Control Board buffoonery; Super-Mega-Jottings
All was not sunny at Borgata last weekend. Our Atlantic City correspondent writes, “When we were driving back to Borgata, heavy rain started. As we pulled into MGM valet intake the wind was getting stronger. The luggage carts were starting to roll around, so the valet people took quick action and knocked the luggage carts over into the nearby grassy area to keep them from hitting parked cars. The wind got extremely strong, and started to make the parked cars rock back and forth, including ours, and we even felt some ‘lift.’
Continue reading Storm in Atlantic City; Big trouble for sports betting
Caesars Entertainment CEO Tom Reeg and Senior Vice President of Corporate Finance Brian Agnew just sat down with Deutsche Bank analyst Carlo Santarelli, who came away sufficiently impressed with the Roman Empire to maintain a “Buy” rating on CZR. Santarelli found the execs “largely balanced and consistent,” their top priority being to reduce debt at the company, which definitely should be Job One. Other leading concerns are “operational prudence” and online execution. The analyst was pleased with “stable operations, underpinned by continued strength in Las Vegas,” as well as by continued traction towards profitability and growth in the Digital business.”
Continue reading Caesars meets The Street; NYC shuffle; Shreveport switcheroo
Truist Securities analyst Barry Jonas took a swing through Dixie casinos last month and had quite a bit to report. He hit the New Orleans, Lake Charles, Baton Rouge and Biloxi markets, his primary takeaway being that operators are consistent and resilient, and the macroeconomic impact “has been limited.” Horseshoe Lake Charles is reported to be growing that market, whilst impacting incumbent operators “less than we feared” (as already noted in these pages). As for macroeconomic impact, “The only notable softness appears to be with more value-oriented, lower-to mid-tier customers in select (but not all) markets.” Jonas partly blamed said softness on lower tax refunds (-11%) this year. He “also heard enthusiasm over social security cost of living increases and higher interest rates on savings flowing to discretionary spend for the older demographic.”
Continue reading Under Southern skies; Presidential casino players
Ohio casino tallies jumped 10% last month, hitting $197 million. It was a decisive win for MGM Northfield Park, which outstripped the competition by grossing $25.5 million, an impressive feat for a casino with *no* table games. Jack Cleveland continues to surge, hitting $23 million (+13%) and surpassing the two Penn Entertainment casinos, so dominant for so long. Hollywood Columbus climbed 16% to reach $21.5 million and Hollywood Toledo nudged up 2.5% to gross $18.5 million. The last of the non-racino properties, Hard Rock Cincinnati, was up 6.5% to $20 million. The heat-up of Jack Cleveland didn’t hurt Jack Thistledown‘s cause, as the racino hopped 8% to $15.5 million. Scioto Downs grossed $20 million, an 11% leap, while Miami Valley Gaming delivered $20 million for co-owner Churchill Downs, a 14% vault. Belterra Park hung in there with $7 million (+2.5%), whilst Hollywood Dayton was up 8.5% to $13 million and perennial overachiever Hollywood Mahoning Valley netted $13.5 million in an 8% hop. As you’ve undoubtedly noticed, no one was revenue-negative, praise be.
Continue reading MGM owns Ohio; NY Lege owns sports books; Texas jolt
Former casino overlord Donald Trump is monopolizing the headlines today but let’s not let him have all the fun. There’s plenty of other gaming-related news today. First and foremost, in the same week that Nashville has seen the latest in an endless series of mass shootings, our attention is drawn back to the Mandalay Bay Massacre, one of the worst. Seemingly every news outlet in the country has gotten ahold of the FBI report on shooter Stephen Paddock. Even though Paddock cased possible shooting sites from San Francisco to Boston, the G-men put down his Las Vegas outburst to a fit of pique. (Kudos to the Wall Street Journal for getting the feds to give up the goods.) A witness told G-Men that “was not treating Paddock well because a player of his status should have been in a higher floor in a penthouse suite.” Yup, that’ll really cause people to go postal. Happens every day.
Continue reading Crime and punishment
Yes, they even read S&G in Atlantic City … Thanks to everyone who keeps us in business. Hey, it’s a slow news day.
