Las Vegas Advisor

Posted on January 25, 2021September 26, 2023 by David Mckee — 1 Comment

Life after Adelson; Super Bowl odds revealed

Taking a business-as-usual approach, Las Vegas Sands reported 4Q20 earnings and JP Morgan analyst Joseph Greff wasn’t blown away, writing that “we, like most investors, see the quarter and any outlook commentary offering little in the way of positive developments for Macau … given recent COVID-19 infection spikes in China and ensuing tightened control over tourist visa issuance for mainlanders to visit Macau.” Given the rampant nature of Coronavirus, Greff foresees but a “modest” boost from Chinese New Year. Mass-market tables and slots were down 64% year/year and VIP win fell 76%. Still, that’s a big improvement from 3Q20, when business was negligible. Greff pegs 3Q21 as the time Macao will come back. He recommended buying Macao-centric stocks, citing Melco Resorts & Entertainment, as well as “fatigue” about the pace of Macao’s comeback and that they are “under-owned in general.”

Posted on January 22, 2021September 26, 2023 by David Mckee — 3 Comments

Louisiana doldrums; Philadelphia Live sparkles

Does reporting bad news get tedious? You bet! But it comes with the turf. Louisiana casino winnings declined 23% last month, in keeping with the national average. Penn National Gaming casinos got off easiest, slipping 11%, while Boyd Gaming ones tumbled 25% and Caesars Entertainment plunged 38%. The latter wasn’t helped by the continued closure of Isle Grand Palais, a hurricane victim. The statewide gross was $162 million. Capacity limits (50%) and reductions in gaming positions (-75%) remain severe, though a larger economic malaise appears to be in play.

Baton Rouge got off by far the easiest, down 7%, led by L’Auberge Baton Rouge (pictured) with $12.5 million, a 1% gain. Casino Rouge was 11.5% off the pace at $4 million, while ancient Belle of Baton Rouge deservedly plummeted 44% to $1 million. In Lake Charles, market share was best defended by Golden Nugget, grossing $24 million and down 8%. L’Auberge Lake Charles slid 19.5% to $23 million and Delta Downs shed 18% to $12 million. New Orleans suffered the most of any market, with Harrah’s New Orleans emaciated 37.5% to $16.5 million. Runner-up was Boomtown New Orleans, down 14.5% to $8 million, while Treasure Chest notched $6 million, a 28% spill, and Fair Grounds racino eked out $2.5 million, a 33% dive. Amelia Belle scraped up $2 million, down 32.5%.

Posted on January 22, 2021 by David Mckee — 1 Comment

Quote of the Day

“I appreciate the referees for putting up with all my fussing. I think I was right most of the time dadgummit!”—Indianapolis Colts quarterback Philip Rivers, in announcing his retirement from the NFL.

Posted on January 21, 2021September 14, 2023 by David Mckee — 1 Comment

Adelson rolling in grave; Police blotter

It’s a good thing Sheldon Adelson didn’t live to see this. The First Circuit Court of Appeals quashed a 2019 reinterpretation of the Federal Wire Act by the Justice Department, one that broadly applied it to Internet gambling. The federal court agreed with a New Hampshire one that the Office of Legal Counsel had erred and that the Wire Act only applies to interstate sports betting. The case had been brought by the New Hampshire Lottery “We find the plaintiffs’ claims are justiciable and that the Wire Act applies only to interstate wire communication related to sports events or contests,” sayeth the court. Unless the Joseph Biden administration pursues this to the Supreme Court (highly unlikely), Eric Holder‘s narrow, 2011 interpretation of the Act will stand. In other words, the First Circuit has driven a stake through the heart of the anti-Internet-gaming movement, or what’s left of it.

Were Adelson still around and the First Circuit had upheld the 2019 revision, he wound have found himself in an awkward position. Earlier this week, ace reporter James Rutherford revealed that Las Vegas Sands “was in discussions with potential partners to enter the sports betting business, a move that would take the company down the internet gambling path which Adelson so vehemently opposed.” That would make Adelson even more of a pious fraud than he already was on the Internet issue. It’s a disservice to Sands shareholders that the company has missed the online-sports-betting boat, although it’s in no position to capitalize i-gaming, not after having quit Pennsylvania.

Posted on January 20, 2021 by David Mckee — Leave a comment

The Strip plays Capitol Hill

It was like the good old days of the Las Vegas Strip were back in full flower at President Biden’s inauguration. It featured two Strip headliners-in-limbo, Lady Gaga and Jennifer Lopez, as well as former headliner Garth Brooks, crossing party lines to deliver a moving “Amazing Grace.” Her Ladyship’s very personal rendition of “The Star-Spangled Banner” got the proceedings off to a rousing start and every performer gave hope of better times ahead for Sin City.

Posted on January 20, 2021September 14, 2023 by David Mckee — 3 Comments

Icahn saves Trump Dump; Disaster in Pennsylvania

Carl Icahn‘s abusive-codependent attachment to Trump Plaza knows no ends. In his latest gambit, the magnate has kiboshed the implosion of the ramshackle ex-casino that had been slated for sometime in February, by dint of obtaining a cease-and-desist order. Instead, dismantling of the crumbling relic will continue at a stately pace, with plans for the site still unknown. At least Icahn, who has repeatedly embarrassed Atlantic City, showed some grace this time. He short-circuited Mayor Marty Small‘s auction of the demolition rights by matching the leading bid—$175,000—and donating it to the Boys & Girls Clubs of Atlantic City. Our sincere thanks for that, Uncle Carl. “From the beginning, we thought the auction and any other related spectacle presented a safety risk, and we were always clear we did not want to participate in any way,” said an Icahn mouthpiece. Opined The Press of Atlantic City, “We hope this happy ending opens the way for redevelopment of the Plaza site for the benefit of all.” We hope so too.

Posted on January 19, 2021August 24, 2023 by Bob Dancer — 15 Comments

Is It Worth the Risk?

I was playing a $1 9/6 Double Double Bonus game with multiple progressives. The royal was at $5,400 and aces with a kicker (AWAK) was slightly above $2,300. The other two active progressives, which reset at $800, had been hit in the previous half hour and had not yet risen much.

The numbers made the game about 100.1% which I would usually consider a waste of time, but it was by far the best game in the house. The slot club added 0.2%, the meter was rising at 1%, and I needed to play some to keep my mailers coming. Plus, sadly, at the moment I didn’t know of any better game around, so I played.

Posted on January 19, 2021September 14, 2023 by David Mckee — 1 Comment

Massachusetts hit hard; NFL playoffs a tossup

Between Covid-19 capacity restrictions (33%) and statewide curfews (9:30 p.m., when the night owls are just getting rolling), Massachusetts casinos were between a rock and a hard place last month, with revenues falling 40% to a meager $50 million. If there was a silver lining for anybody, it was at Plainridge Park, whose slots collected an above-average win/slot/day of $247 and whose market share was 18%, closing the gap with MGM Springfield‘s 23%. Encore Boston Harbor remained dominant with 59%. Encore revenue plummeted 46% to $29 million, MGM made $11.5 million (-40%) and Plainridge Park won $9.5 million, only 10% off the pace on 10% less coin-in. (They must have some pretty loyal customers.) MGM saw 33% less slot handle (an anemic $118/win/slot/day) and a disastrous 60% plunge in table game revenue. Where JP Morgan analyst Joseph Greff had predicted a 15% decline in the fourth quarter, MGM delivered -34%.

At Encore, it was the opposite story. Greff expected a 50% 4Q20 decline and Encore managed -34%, a victory of sorts we suppose. Slot handle fell 29% and so did revenue from the one-armed bandits. Table game win was $2,972/table/day (contrast that to MGM’s $543). But even tightening the hold on the slots didn’t help that department. Plainridge Park is obviously doing things right, Encore somewhat the same but a serious rethink of MGM’s gaming product appears in order. Connecticut tribes who feared competition from Springfield can sleep easily at night.

Posted on January 18, 2021September 18, 2023 by David Mckee — 1 Comment

Flynt winning in California; Caesars S.I. to Cherokee?

Larry Flynt continues to be the de facto leader of California‘s card room industry. He’s fighting in court against a Golden State law that prevents card room owners from holding stakes in out-of-state casinos. (Flynt in Las Vegas? Imagine!) When Gov. Gavin Newsom‘s administration moved to dismiss Flynt’s suit, Judge John Mendez said ‘No.’ He also indicated that the law could contravene the interstate-commerce clause of the U.S. Constitution. Flynt has been waging this battle since 2016. He co-owns two card rooms, Hustler Casino (what else?) and Lady Luck, both in Commerce. The law Flynt is trying to overthrow was enacted in 1986, in an attempt to keep Mob influence out of California’s gaming industry. If so much as one slot machine went into Flynt’s Vegas-area strip club, he’d either have to sell the club or his card rooms. For Flynt, that is Sophie’s Choice.