Category: Las Vegas Advisor

Caesars Entertainment formally took the Flamingo off the sale block yesterday, at least for the foreseeable future. CEO Tom Reeg cited ‘market conditions‘ (odd when the Las Vegas Strip keeps breaking records). There is also the complication that Vici Properties has right of first refusal on a sale, throwing a cock-block on any big spender the Flamingo might attract. Chances are, having knocked the price down from $2 billion to $1 billion to $800 million, Reeg is still having trouble finding takers for the property. Planet Hollywood theoretically remains in play but Reeg’s preposterous insistence on keeping the conjoined Zappos Theater (Or have they changed the name again?) is a serious deterrent. “There are plenty of interested parties,” Reeg claimed, blaming his inability to cut a deal on “the financing environment is what it is. If that’s going to impact what someone will pay, there’s a level I’m not going to chase, and I’m very happy to just clip the free cash flow and come back later.”

Although gambling revenues in Maryland decelerated somewhat from May, they were still 1% higher than last June and 14% more robust than 2019’s, for a total haul of $163 million. It was basically a two-horse race, with MGM National Harbor controlling 42% of market share to Maryland Live‘s 34.5%. MGM’s category killer grossed $68 million (up 7.5%) while Cordish Gaming‘s rival powerhouse brought in $56 million (down 4%). Horseshoe Baltimore was a distant third with $17 million but achieved a victory of sorts by being flat with last year. (Any month in which Horseshoe is not sliding downward is a good month.) Best of the rest was Ocean Downs with $8.5 million, despite being 3% off its feed, while Hollywood Perryville brought in $7.5 million, a 4% dip. Hardest hit, relatively speaking, was Rocky Gap Resort, down 7% but good for $5 million.

Even as Chicago Mayor Lori Lightfoot (D) blunders forward with her megaresort campaign, more voices are being raised in criticism of how the Second City is going about the process. A Crain’s Business analysis determined that “Each location appears to have serious shortcomings when it comes to delivering the greatest possible benefits from a long-awaited city casino.” The conclusion is that Lightfoot is moving too fast in order to garner a quick payday for the city’s “woefully underfunded” pension system.

And the best way to do that, Crain’s argues, is to create a tourist draw, not something that leeches off of existing Illinois casinos. “Maybe a glitzy city casino would lure a few more Hoosiers and cheeseheads. But Indiana, Wisconsin, Iowa and Missouri all have plenty of casinos, limiting the potential market of day-trippers.” And, it argues, casino gambling may cannibalize existing revenue streams like major league sports and a stellar theatre scene.