Penn Entertainment stock collapsed 13% Wednesday afternoon after Barstool Sports founder Dave Portnoy took to Twitter to rant and rave about the firing of Ben Mintz, a ‘Stool fool who dropped the N-word on air for all the world to hear. A panicky Portnoy simultaneously trashed Penn’s decision whilst pretending to rationalize it by saying the company could lose all its gaming licenses over the Mintz matter. Not bloody likely, although it would certainly imperil Penn’s provisional OSB license in Massachusetts, where it just squeaked by the last time—possibly in Ohio, as well, where it had been running a scofflaw operation.

So stupid is Portnoy that he scored an own-goal on his personal stock holdings, being heavily invested in Penn. He quickly tried to spin his gaffe, tweeting that it’s “Great time to buy. It’ll bounce back in my humble non financial advise [sic] opinion.” What an idiot. As Credit Suisse analyst Ben Chaiken diplomatically put it, “well publicized Barstool personnel changes likely drove the stock reaction.”

Continue reading Portnoy torches Penn; Station “outstanding”; DraftKings improves; Alabama betting brouhaha; Derby gone to the dogs

Wall Street analysts rolled over and lit a cigarette after hearing Caesars Entertainment‘s first-quarter earnings call. J.P. Morgan analyst Joseph Greff said the results were pretty much as expected “with Las Vegas Strip upside more (way more) than offsetting a (modest) Northern Nevada adverse winter weather-related shortfall in its Regional segment (absent this impact, the segment would have been ahead) and a steady reduction/rationalization in Digital, with a near breakeven result.” Breakeven in digital? That is big—and good—news. Greff was moved to utter a “wow” when reporting that Caesars is gaining traction in Strip midweek bookings (good) and convention traffic (even better), with the latter accounting for 21% of room nights, up 50% (with help from triennial CONAG) from a pre-Covid 14%. We’d be orgasmic too if we had skin in the CZR game.

Continue reading Caesars satisfies; Knee-Jerlecki response; Press-ed out

Resisting the temptation to call it Aladdin 2.0, executives at Wynn Resorts unveiled designs of their United Arab Emirates casino resort, Wynn Al Marjan Island. Noting that its’ the company’s first oceanfront resort, Wynn is quick to assure us that the casino is 1,000 feet above sea level, presumably safe from the depredations of global warming. The company is specific about the budget ($3.9 billion) but vague regarding what the finished product will offer. “The project will pave the way for the accelerated growth of allied business sectors,” we are promised. What the company is prepared to say is that there will be 1,500 guest rooms and suites, 24 unspecified eateries, and oh yes, “a gaming area.”

Continue reading Wynn’s Arabian nights; White Paper no whitewash