Las Vegas Advisor

Posted on February 2, 2023September 14, 2023 by David Mckee — Leave a comment

A peek at Penn; DraftKings retreats, Aruze tumbles

Wall Street analysts got an early look at Penn Entertainment‘s 4Q22 earnings, which were mildly adverse and poorer than The Street expected, and which point to a flat trajectory going forward through the early summer. Deutsche Bank analyst Carlo Santarelli described the preview as “realistic, though likely uninspiring guidance.” Revenues were 3% down in 4Q22, revenue was $1.4 billion and cash flow slipped 5%. To encourage stock analysts (per Santarelli), “Management noted challenging weather in December, while also noting strength in the final week of the month and a continuation of strength into January. The Deutsche Bank analyst blamed the underperformance on new competition, “as well as the impact of same-store revenue headwinds on margins.” The interactive segment (excluding Barstool Sports) also pulled down the numbers somewhat, which some fingered on John “Mattress Mack” McIngvale and his big World Series win.

Posted on February 1, 2023September 14, 2023 by David Mckee — Leave a comment

Ohio dips; Bally’s unplugged; Macao booms

Here’s one for those of you who believe gambling is facing a recession: Revenue in Ohio fell 2% last month (yes, it took the Buckeye State until February to report December’s numbers). The haul was $193 million, which was still 14% better than the end of 2019, if that’s any consolation. MGM Northfield Park maintained its market-leading status with $24 million, up 5.5%. But there was a surprise challenger: Jack Cleveland, close behind with $23.5 million, an 8.5% gain. Other racinos that were revenue-positive (like MGM Northfield) were Scioto Downs, up 2% to $19.5 million and doughty Hollywood Mahoning Valley, up 3% to $13 million. Miami Valley Gaming was flat at $19 million.

Posted on January 31, 2023August 24, 2023 by Bob Dancer — 13 Comments

This Made Me Uncomfortable

Bonnie and I were at Harrah’s in Cherokee, NC for a Caesars Seven Stars trip. Cherokee is in the Smoky Mountains and a world away from Las Vegas. Plus, they have $5 NSU Deuces Wild.

For a Seven Stars trip, you get up to $1,200 airfare, $500 in resort credit, and transportation to and from the airport. The airport means either Asheville (about 50 miles away, but not a direct flight) or Atlanta, which is 160 miles away (which is much easier to get to). We usually fly into Atlanta.

Posted on January 31, 2023 by David Mckee — 3 Comments

Nevada closes 2022 roaring; Lombardo’s big blunder

Gambling grosses for last month have been tallied and it’s an understatement to say they’re boffo. Nevada casinos raked in $1.3 billion, a 14% leap over 2021. You can see why we think that—as it pertains to gaming—a recession is “the most overhyped narrative of the last year.” It simply refuses to manifest itself. That’s especially true of the Las Vegas Strip, which vaulted 25% to $814 million. Downtown took it on the kisser, down 7% to $69 million. Hopefully, new product at the Fremont Hotel can help reverse that before it becomes a trend. The Boulder Strip also had a rough month, slipping 8% to $64 million.

However, long-anemic North Las Vegas was up 5% to $25 million and miscellaneous Clark County was flat at $137 million. Laughlin hopped 8% to $32 million, while Utah-facing Mesquite and Wendover were bonny, jumping 11.5% and 20%, respectively ($16 million and $22 million). Snowbirds avoided Lake Tahoe, which tumbled 16% to $15.5 million whilst Reno was up 6% to $59 million. A lot of mixed signals, yes, but more pluses than minuses.

Posted on January 30, 2023 by David Mckee — 1 Comment

Case Bets

What do you do when there’s no really big story of the day? Bust out an order of Case Bets, what else. Let the fun begin …

Rivers Portsmouth has already had a come-to-Jesus moment after its pro-smoking stance revolted patrons. (One activist likened the existence of a smoking section in the casino to a “peeing section” in a public pool.) Well sorta. Rush Street Gaming‘s rather lame excuse was to erect signage designating where smoking can and cannot be practiced … as though the smoke itself will obey the signs. And guests continue to complain. The pervasive smoke has contributed heavily to Rivers’ dismal 3.2 rating on Google. “I won’t be back because my post-COVID asthma and congenital heart condition cannot be around smoking,” grumbled one customer.

Posted on January 27, 2023August 29, 2023 by 888 Casino — Leave a comment

How Many Decks in Blackjack? Understanding the Role of Deck Quantity

This post is syndicated by the Las Vegas Advisor for the 888 casino group. Anthony Curtis comments on the 888 article introduced and linked to on this page.

A.C. says: This article is very basic, but it correctly states that, in terms of the disadvantage you face when playing, fewer decks are better. The difference between the casino edge for a single deck versus 6 or 8 decks is about .5%. That’s due primarily to the diminished value of doubling down, but there’s also a decrease in the frequency of naturals as the number of decks increases. The article is also correct that hand-held single- and double-deck games play more slowly, as there’s more down time with shuffling. That’s another plus for beginners playing at a disadvantage (they have less exposure to the house edge). Note that the belief held by many that multiple decks are more difficult to count doesn’t apply to skilled players, who can easily count any number of decks. However, dealing a multiple deck allows the casinos to move the cut card to decrease deck penetration, which is an effective deterrent to counting.

Posted on January 27, 2023September 26, 2023 by David Mckee — 4 Comments

Sands impresses; Trump’s new Mob pal; Boardwalk blotter; Mega-Jottings

Wall Street was in a sunny mood this week after Las Vegas Sands‘ 4Q22 earnings presentation. As Credit Suisse analyst Ben Chaiken summarized, “two large takeaways in our view were strength in Singapore and what we felt was a positive tone from [management] concerning the trajectory of Macau, due to pent-up demand potential.” Normally we bristle at the overused phrase “pent-up demand” but early indicators from Red China are that gamblers are champing at the bit to get into Macao.

Cash flow at Marina Bay Sands was well ahead of The Street’s expectation, hitting $386 million at gambling monies reached an all-time high. Chaiken said Macanese trends have “accelerated” heading into Chinese New Year—in which visitation is at 40% of 2019 numbers—and that Sands is on course to post positive ROI again. But, wrote Chaiken, “the Singapore rebound (faster than we expected) could provide insight into what a Macau recovery could look like,” especially when achieved with air travel into Singapore that is still constrained at two-thirds of pre-Covid levels.

Posted on January 25, 2023September 14, 2023 by David Mckee — 1 Comment

Bluhm blows smoke; Detroit declines; Bally’s sheds jobs

No, that isn’t a new big-box retail outlet (which its entrance rather resembles) but Rivers Portsmouth, the first permanent casino to open in Virginia. On hand were Allen Iverson, a marching band, a gaggle of local politicians … and the noxious odor of tobacco smoke. Comments harvested by Americans for Nonsmokers Rights included such gems as “This is just not OK” and “I will never come here again.” That’s not what Rush Street Gaming execs want to hear, less stil, “I think it’s backwards, archaic, disgusting and I won’t come here ever again.” Opined player Beth Grimes, “I hadn’t even sat down yet to play a game. I’m leaving. I’ve been in this building 30 minutes walking around, and all of a sudden, as more people have come in and sat down, they’re smoking, smoking, smoking.” Also irked was Norfolk resident David Spry: “I finally quit and I’m not going to be putting myself into a position where I’m going to get second-hand smoke.” Nor should he.

Posted on January 24, 2023August 29, 2023 by Bob Dancer — 12 Comments

Figuring the Return for 8/5 Bonus Poker with Four Progressives

Note to reader: The original version of this contained an arithmetic mistake. It was pointed out to me by a man who posts under the name “New2vp”. The error, which affected one of the tables in the chart, are in the section relating to quad 5s-Ks. The corrected version follows. Thank you New2vp.

I received an email: Sam’s Town in Las Vegas has three different banks of 8/5 Bonus. Two of those banks have progressives on the royal flush only. The third has that progressive, plus three additional ones for the quads: aces, 2s-4s, and 5s-Ks. Since the game starts out at 99.17%, sometimes these games must be pretty good. How do I figure out how to calculate the return of these games quickly if I don’t bring computer software into the casino?

Posted on January 24, 2023September 14, 2023 by David Mckee — Leave a comment

The popularity of parlays

Being busy on other fronts today (tune or surf in at 9 a.m. PST to KNPR‘s State of Nevada, we’re turning S&G over for the day to Samuel of Sports Smart Betting. If you like his work, you may see it here on a recurring basis. After all, sports betting is dominating the gambling conversation today. For his initial topic, Sam explains the …

Reasons why parlay bets are so popular

1. Parlay bets can offer higher payouts: These types of bets typically have higher payouts than single bets because of the multiplicative effect of more selection in a single bet slip. This can be attractive to bettors looking for a chance to win big even if they take several times more risks.

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