I have a 3-days-a-week gym buddy. We do 20 minutes of aerobics, another 20 minutes with weights, and call it a day. It’s not a rigorous routine, but it’s a lot better than no exercise at all, and we’re both better at keeping the schedule if the other guy is there too.
One night I got a text from him saying he took a Covid test for an upcoming trip and tested positive. He was required to quarantine for ten days so would not be at the gym for a while.
Continue reading My Covid Test
Rather than face (well-deserved) impeachment, New York State Gov. Andrew Cuomo (D) resigned in disgrace today. Which happened to coincide with the disclosure of the companies which have applied to be online sports betting provider(s) for the Empire State. Cuomo’s not-a-moment-t00-soon departure means that the contenders can hope not to be shaken down or chosen on the basis of how usuriously they are willing to be taxed (isn’t that tantamount to bribe solicitation, guv?). And Cuomo’s obvious favorite, DraftKings, now faces a level playing field. At least that is our hope. The finalists will be Bet365, Penn National Gaming/Kambi, FanDuel/BetMGM/DraftKings, TSG/FoxBet, TheScore and a jumbled combination of Kambi/Caesars Entertainment/Resorts World/PointsBet/WynnBet/Rush Street Interactive. DraftKings still has a very good chance of getting one of the plums, if for no other than reason than it’s riding the coattails of MGM and favorite son Empire City Yonkers. The second Kambi combination platter also has an edge since it contains two other New York brick-and-mortar operators, Rush Street and Resorts World.
“We expect to learn of the winning consortiums, and we believe two will be chosen, in the next 4-6 weeks. Based on the criteria put forth in the RFA, we believe there are obvious front runners from the list, and those for whom the prospects appear dim, based on their track records relative to the RFA selection criteria. That said, it’s New York and anything can happen,” wrote Carlo Santarelli of Deutsche Bank. Yes, anything can happen. Just ask Andrew Cuomo.
Continue reading Open season in New York; Ohio, Missouri boom; Scientific baffles
Secretary of the Interior Deb Haaland has jumped the shark. Her department has wisely-washily neither confirmed nor denied the controversial Seminole Tribe compact with the state of Florida, one that gives the Seminoles control over sports betting in the state. As a result, it goes into effect Oct. 15. What this means, practically speaking, is that we could drive across the Florida state line, park at the nearest rest stop, place a mobile wager from the restroom and have it be classified as ‘tribal gaming’ because all such bets are routed through servers on Seminole sovereign land. Yes, a toilet stall on the interstate could qualify as a ‘tribal gaming’ location under the terms of the compact. Haaland must have known this would be a hot potato, as the Interior Department snuck the decision out under cover of darkness (“quietly and passively,” as one newspaper put it). Or rather, they dumped it on the proverbial curb on Friday, the end of the news cycle when nobody would be looking. A court challenge is inevitable and, we hope, successful.
Deutsche Bank analyst Carlo Santarelli showed some skepticism of his own. He wrote, “While the initiative is likely to be legally challenged by numerous parties, and while [DraftKings] and FanDuel have partnered to get a petition signed to get on the November 2022 ballot, the way things currently stand, online mobile wagering in Florida is a monopoly, something we believed was likely to be the case, despite optimism around the skin partners. We believe that optimism should have faded once the DKNG/FanDuel effort to seek a different path got underway, as it essentially implied that both operators recognized that the hub and spoke OSB model via the Seminole Tribe wouldn’t work.”
Continue reading Florida compact sneaks into effect; DraftKings buys out FertittaThat’s a pretty dry title for this post, about as aptly dry as Colin Jones’s “The 21st-Century Card Counter.” But the movie title’s better than the book’s. “Holy Rollers”—not just a play on words, but also an oxymoron that Hollywood loves. Remember that moment when the Preacher gunslinger swaps his clerical collar for a pistol in Pale Rider? And now Netflix has brought us Warrior Nun. It’s very entertaining watching the ostensible pacifist using violence to attain a righteous end.
Christians, who are presumed to have an aversion to gambling, take on the House, trying to stick it to the Man (meaning the casino, not the big G). The result is high drama, and subsequently a blackjack factory at blackjackapprenticeship.com [to which I have no affiliation].
Continue reading Colin Jones: Season 1 Episode 7
We Americans sure do love us some gambling. Maryland‘s July numbers just came in and it’s 20.5% (!) ahead of 2019. Casinos won $180 million and two extra weekend days obviously helped the tally. MGM National Harbor led with $72 million (+19%), outpacing Deutsche Bank analyst Carlo Santarelli‘s $64.5 million forecast. Maryland Live locked up a 35% market share and $63 million in winnings, up 28%. Penn National Gaming was just in time in reacquiring Hollywood Perryville on July 1, $9 million gross was a 34.5% improvement on two years ago. Ocean Downs leapt 28% to $10.5 million and Rocky Gap Resort‘s $6 million was a 22% gain. And in what has to be a triumph for Horseshoe Baltimore, it was flat with 2019, grossing $19 million. So there’s some hope for it yet. West Virginia casinos nudged 5% above 2019 numbers, driven by a 34% increase in table win. Hollywood Charles Town was up 7%, 1% higher at the slots and vaulting 42% at the tables.
Penn had Wall Street analysts eating out its hand after the latest earnings call. “Memes [and] grandiose proclamations run wild” wrote Santarelli. “Well, this one was interesting. Between the call commentary, 95% of which was focused on a business that, as we have said for some time, will likely never amount to more than 20% of total Company [cash flow], if it is wildly successful, the social media promotion that began immediately, and the post call livestream ‘pumpapalooza’, PENN threw all it had at the retail investment community to promote a transaction, which, in our view, speaks to exactly what we have been saying for some time, the sports, and especially iCasino, strategies aren’t working.” You see, Penn used the quarterly earnings announcement to hype its acquisition of OSB provider TheScore. “We get that PENN needed a tech stack, but buying a media Company for a tech stack, knowing the challenges peers have had buying tech companies with sports betting tech stacks, seems a bit strange, and frankly, risky. We also get that buying a Canada based company, which has billed itself as a presumptive leader in provincial sports betting, once legalized, seemingly makes sense, but if we have learned any lessons from the US market, the willingness to spend and lose is the path to market share gains, more so than media presence.”
Continue reading Maryland goes, goes, goes; Penn flips out; SEC scrutinizing DraftKings
Wynn Resorts released 2Q21 results yesterday and JP Morgan analyst Joseph Greff called them “strong” in both Las Vegas and Boston. In Macao, eh, not so much. He began by saying “results by region unsurprisingly reflect differences in vaccination rates and mobility/visitation availability.” Wynncore is gaining momentum as the temperature rises, posting the largest cash flow ever since except when it opened. Occupancy hovered around 95% on weekends and in the 80% neighborhood during midweek. “In Macau, limited mobility and small outbreaks continue to pressure travel, unsurprising and similar to 2Q commentary from” Sands China and Melco Resorts & Entertainment. As for WynnBet, it “expects to ramp up marketing ahead of the NFL season,” which seems to be a nice way of saying nothing much is happening right now. Wynncore generated $207 million in cash flow compared to a feeble (and worse than expected) $67.5 million in cash flow from all the Macanese properties. Wynn Macau and Encore Macau only contributed $14 million, while Wynn Palace has finally found its sea legs with a $53.5 million donation. Encore Boston Harbor was a little bit under certain projections at $47 million, though it improves month by month.
Due to a sharp decline in VIP play in Macao, Wynn Resorts is remarketing them as premium mass-market casinos, in order to get pre-Covid revenues without pre-Covid foot traffic. As Deutsche Bank analyst Carlo Santarelli put it, “Las Vegas & Boston shine as Macau remains a waiting game.” Word! “We don’t think we heard anything from management tonight that will meaningfully change the view on the resumption of normalized operations in Macau, with management acknowledging an uncertain timeline, while noting encouraging trend that resemble pent up demand at certain times,” he elaborated. “We expect the Macau names to continue to trade on virus headlines and policy decisions, things we, nor most, can truly opine on with any legitimate confidence.” Back in Vegas, business is fueled by slot fanatics, with coin-in up 37% and table wagering down 3%. Blame the latter on a lack of international players.
Continue reading Wynn “strong” this summer; MGM returning to form
In a deal that Nevada regulators would block if they had an ounce of spine, MGM Growth Properties proposes to sell itself to Vici Properties, which would put nearly all the prime land on the Las Vegas Strip under one owner. Vici already owns most Caesars-branded properties on the Strip and is on the verge of adding The Venetian and Palazzo. It was, as Deutsche Bank analyst Carlo Santarelli put it with delicious understatement, “a deal with far-reaching implications.” The price tag is a whopping $17.2 billion, paid in a mix of cash and stock. Of that, $5.7 billion is debt already carried by MGP. Adds Santarelli, “the true driver of M&A in the [REIT] sector was cost of capital, and with VICI having traded at a healthy equity premium to the group for some time, with access to inexpensive debt financing, the transaction makes both intuitive and financial sense.” Still, $17.2 billion is a not-inconsiderable amount of debt, however low your interest payments may be (3.75% in this case).
“In 2016 we started on our journey to become asset light and this announcement, together with our recently announced Springfield and CityCenter transactions, reflects the culmination of those efforts and a major step forward in simplifying our corporate structure,” said CEO Bill Hornbuckle. “As a result of these actions, we are well positioned and remain focused on pursuing growth opportunities in our core business, with significant financial flexibility to continue to deploy capital to maximize shareholder value.” In a goodbye note to MGM, MGP Chairman Paul Salem wrote, “We are thankful to the MGP management team for all of their efforts to develop MGP into a premier gaming REIT.” “We have always admired the exceptional quality of MGP’s real estate portfolio,” added Vici CEO Ed Pitoniak, unable to conceal his glee.
Continue reading Monster monopoly on the Strip?; Caesars wows Wall Street
In a very george move, MGM Resorts International is donating two acres of Strip land to be the site of a memorial to the victims of the Mandalay Bay Massacre. The acreage, at the corner of Reno Avenue and Giles Street, is part of the larger area where the infamous Route 91 Harvest festival took place. The exact nature of the memorial remains to be debated and we’re sure it will be a contentious process. But we’re also certain that MGM could have seen megabucks for the two acres on the open market and chose to pass that up in favor of a generous gesture toward the Las Vegas community. (Sixty people died and hundreds were injured due to the act of domestic terrorism.) “Having a permanent memorial commemorating the victims and heroes of 1 October is vital to our community’s continued healing, and we are honored to donate a portion of the Village site to help bring that memorial to fruition,” read a formal MGM statement. We’ve often been critical of MGM’s response to the victims of the shooting but would like to think we’ve saluted it when it’s done the right thing. As it just did.
Gaming & Leisure Properties Inc. is dropping ominous hints about the future of the Las Vegas Tropicana, feeding into speculation that owner-to-be Bally’s Inc. will demolish the venerable resort so that its 35 acres can be converted into a baseball stadium. This would be the cruelest in a series of cruel blows to the Trop, which has suffered from a series of poor or inattentive ownerships. Admittedly, at 64 years of age, the Trop is ancient history by Vegas standards—and Bally’s might be left at the altar. The Oakland Athletics have reopened negotiations with Oakland Mayor Libby Schaaf, suggesting that Sin City just got played by the big boys. Since the A’s are committed to Oakland through 2024, Bally’s doesn’t have to make any rash decisions regarding the Trop’s immediate future.
Continue reading MGM does the right thing; Killer chipmunks in Lake TahoeBonnie and I recently checked into a local casino comped room. We don’t really “need” a room — we’re locals living about 15 miles away — but Bonnie doesn’t drive anymore, I was planning on playing four hours or so in a particular promotion, and we wanted to eat dinner together at the casino.
Bonnie is a non-player (well, she allows herself $5 sometimes at nickels, until it goes). Video poker is basically my avocation/vocation. She’ll take along some books on tape. Often, she’ll get her exercise by walking through the air-conditioned casinos, which are much cooler than Vegas in the summertime. She knows how to use Zoom, and sometimes she’ll have a nice chat with one of her friends or relatives while she’s waiting.
Continue reading Has This Happened to You?
Even before it opened, we received frequent questions about whether tours of Allegiant Stadium would be available and we understand the curiosity. It’s not every day you get to go behind the scenes of a $2 billion building, let alone one you see on television with 65,000 people in the stands, NFL teams on the field, and celebrity broadcasters in the booth.
The tours depart from the first-level base of the Al Davis Memorial Torch, which rises to the third level of the stadium. Upwards of 20 people were on the tour in front of ours and 25 on ours; they’re definitely popular. Our guide was excellent—full of energy and passion for the building and team, he imparted a steady stream of information about both. After getting your first view of the field, you head to one of the restroom/concession areas and learn that the stadium has 297 restrooms and 1,430 toilets, along with 76 concessions, so people at games and concerts won’t have to miss much while waiting in line for food and bathroom breaks; you also see a video of the “flush test,” in which the plumbing for all 1,500 toilets and urinals was checked.
From there, you go up a level to where the corporate suites and broadcasters’ booth are. The booth is just an empty (carpeted) box; the networks and radio stations have up to 72 hours before games to load in all their sets, electronics, robot cameras, etc. But the view, right at the 50-yard line on the second level, is the best in the stadium. Second-best is from the 127 VIP and corporate suites on two levels that feature luxury box seats and bars and buffets behind them in small rooms; we walked through one of MGM Resorts’ high-roller hangs.
Then you descend to the bowels of the stadium for stops at the Raiderettes exhibit and locker room, post-game press room, and Raiders locker room. Again, they’re pretty much empty, just a few props for the tours, and smaller than you might expect for all the people they accommodate on game days. The players’ locker room, though, is fancy, with black-and-silver décor; you watch a video of Raiders of different eras getting ready for games, then the climax of the tour is a hologram of current coach Jon Gruden giving a rousing pep talk.
From there, it’s right onto the field for your pro-football fantasy. You have five minutes to take a line-of-scrimmage stance, run, do a touchdown victory dance, and/or tackle your husband. It’s interesting to see the Wynn Field Club behind the north goalpost for the highest rollers. As always in Las Vegas, you exit the field right at the logo store. From there, the cheap tickets go through the store and out to the parking lot, while the VIP tickets—tour and a drink—go back up to the main concourse bar.
The tours depart every 20 minutes between 10:40 am and 9 pm, though the number of tours and days is shrinking as the stadium hosts more events. They last 75 minutes and cost $59, or $80 for the drink and view (discounts available for locals and “those who serve”). Make reservations and pay online. Parking is free. Wear walking shoes; you cover a lot of ground. It’ll be fun to watch Raiders’ home games on TV after seeing the stadium from the players’, cheerleaders’, broadcasters’, and high-roller points of view.
