Category: Casino News

Sometime today, Chicago Mayor Lori Lightfoot (D) is expected to ramrod her choice of Bally’s Corp. through the City Council. Why the unseemly haste? Lightfoot desperately covets Bally’s $40 million in upfront money to prop up the Windy City’s tottering civic budget, $306 million in the red, although some experts say the math doesn’t add up. Worse yet, Lightfoot knows it, judging from her attempt to jack up the property-tax assessment on the Bally’s Tribune site. It would be levied at $125 million … permanently. (So much for depreciation.) According to The Real Deal, “While Bally’s and owners of at least 25 percent of it could object to higher valuations, they couldn’t argue that it’s less than any amount below the minimum.”

In return, Bally’s would be allowed to slide on Lightfoot’s 30% minority-owned contracting demand, to say nothing of her 10% women-owned contracting edict. A “good faith effort” will now suffice. Also, controversy has not died down regarding Lightfoot’s designation of Medinah Temple as the temporary-casino site, in an apparent attempt to reward a george campaign donor. Said Zoning Committee Chairman Tom Tunney, an opponent of the rushed vote, “Even though Medinah is empty, it’s in the middle of a very congested area. They’re saying that there’s plenty of parking around the Medinah Temple because Medinah itself doesn’t have any parking. But parking was there before Medinah. So the question, in my opinion, is what’s the utilization rate right now? There’s a liquor moratorium. So the ordinance is going to exempt the casino from local liquor moratoriums. That’s a problem.”

Casino revenue leapt 24% in Atlantic City from last April 2021, pulling in $253 million. Slot revenue rose 21% on 18% more coin-in, easily offsetting a 3% decline in table revenue on flat wagering. Borgata lapped the field, catapulting 60% to $61.5 million. A distant second was Hard Rock Atlantic City, up 15% to $40.5 million. (In a case of fixing what ain’t broken, Hard Rock Rewards is being phased out in favor of something called Hard Rock Unity. Go figure.) Ocean Casino Resort climbed 18.5% to $26 million. Revamping is doing wonders for Bally’s Atlantic City, vaulting 31% to $14.5 million.

Of the Caesars Entertainment threesome, Harrah’s Resort fared the best, up 12% to $23 million. Tropicana Atlantic City was close behind, +17% for $22.5 million. Caesars Atlantic City was up 7% to $20 million. Resorts Atlantic City gained 10.5% to $14 million while last place was occupied by the Golden Nugget (above), garnering $12 million, up 12%. It was either feast or famine at the Nugget. Our correspondent went there and reported that Friday night was “well attended” thanks to a Dionne Warwick show. But Saturday night was dead, with the lounge empty save for one very lonely performer—even the bartender had left. That’s cold.

Our East Coast correspondent writes, “As of [May 4], everyone in New Jersey has to bring their own bags when they purchase almost everything. Single-use plastic and paper bags are gone, except for stores less than 2,500 square feet in size. If that doesn’t make sense, remember you’re in New Jersey, where nothing has to make sense. In Atlantic City‘s press the other day, the ‘pickleball courts’ will soon be ready at Bader Field (former airport), they are waiting for some parts to arrive (the pickles?). After all that excitement, they are planning to play cricket. Who, you may ask, knows how to play cricket in A.C.? Doesn’t matter, if the town council can get free money from the state or the casino people, they will build the playing field. [Editor’s note: Technically it’s a ‘cricket pitch,’ but you get the idea.]

“In other A.C. news, the casinos still favor smoking, even though only 15% of people smoke there. The casino unions are looking for substantial pay increases when their contracts expire soon—just before the busy summer season. What great timing.

That widening chasm between DraftKings‘ revenue projections ($2 billion in 2022) and its elusive profitability may be catching up with Jason Robins‘ company. Red ink from 1Q22 was $468 million, way up from 1Q21’s $346 million. Negative ROI shot up from $139 million to $289.5 million. What’s the problem? According to Bloomberg, the company is actually growing revenue ($417 million) and player base (two million added)—but spending ever more to get them. Robins’ answer to these problems is to cite $300 million in vague synergies from buying Golden Nugget Online and to sign former ESPN doofus Mike Golic. Yeah, that’ll really move the needle.

Analysts on Wall Street are going to be ratcheting up their forecasts for Caesars Entertainment for the remainder of 2022. Or so says Deutsche Bank analyst Carlo Sanatarelli. The Roman Empire’s 1Q22 cash flow of $296 million exceeded The Street’s consensus of $287 million. This was in spite of “the potential pitfalls associated with the domestic consumer … [and] the digital losses, all combining to drive the negative narrative.” As for that digital sphere, Caesars expects it to become profitable in two quarters’ time, but not before racking up a $1.5 billion cumulative loss. Meanwhile, the company continues to enjoy tailwinds on multiple fronts, whether it be the cessation of mask mandates in New Orleans or additional room capacity in Atlantic City. Still to be felt are the rebranding of Horseshoe Indianapolis, the expansion of Harrah’s Hoosier Downs and the return of the company to lucrative Lake Charles by year’s end.