{"id":32768,"date":"2023-07-20T07:03:24","date_gmt":"2023-07-20T15:03:24","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=32768"},"modified":"2023-09-26T13:22:11","modified_gmt":"2023-09-26T21:22:11","slug":"casinos-boffo-everywhere-unite-here-dumbassery","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/blog\/casinos-boffo-everywhere-unite-here-dumbassery\/","title":{"rendered":"Casinos boffo everywhere: Unite-Here dumbassery"},"content":{"rendered":"\n
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Beating Wall Street<\/strong> expectations comfortably, Las Vegas Sands<\/strong> reported cash flow of $973 million yesterday. Wall Street had expected $939 million from the second quarter while a more optimistic Joseph Greff<\/strong> of J.P. Morgan<\/strong> had projected $964 million. Macao<\/strong>-derived revenues continue to climb, hitting $530 million for 2Q23 (Greff had anticipated $548 million). Mass-market play continues to be Sands’s savior, with premium mass at 93% of pre-pandemic levels while bread-and-butter gamblers have achieved 77% of their prior volume. June was particularly strong for Macao, with a boffo $200 million in EBITDA achieved in the final month of the quarter. However, the Street expects far more from the third and fourth quarters: $617 million and $701 million respectively. Interestingly, while Chinese provinces are still below 2019 visitation numbers, Hong Kong <\/strong>players are all the way back and then some\u2014102% of where they were before a little ditty called Covid-19<\/strong>.<\/p>\n\n\n\n\n\n\n\n

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Greff called both Singaporean and Macanese results “generally fine,” albeit not the big surprise that was 1Q23 “and we continue to believe the recovery in both Macau and Singapore<\/strong> should continue.” Looking ahead Sands will have full complements both of hotel rooms and employees. “Between this and our expectation of sequential increases in monthly [gross gaming revenue], reflecting seasonality and a higher mass mix, we see a scenario where LVS gains sequential market share and margins improve.” A lack of Chinese players continues to hinder Singapore, where Chinese passenger loads are still well below the pre-Covid days. Since China<\/strong> accounts for 25% of Marina Bay Sands cash flow, that is a problem.<\/p>\n\n\n\n

Over at Deutsche Bank<\/strong>, analyst Carlo Santarelli<\/strong> was less enthusiastic than Greff: “With expectations likely having crept higher, it is possible that trading activity could provide an opening for longer-term investors to accumulate the shares on any weakness, given our view, that little in the report changes the outlook in a material way.” He noted positively that retail income increased 6% quarter-over-quarter and that Sands had 32% of mass-market share, which would put it well out in front in Macao. He also noted several key metrics with respect to Singapore: Mass-market table win is 29% higher than before Covid, Changi Airport<\/strong> has reached 80% of pre-pandemic volume, non-gaming revenue is up 25% from 2019 and hotel revenue 12%. Wall Street may have its skeptics but we continue to place our faith in Sands.<\/p>\n\n\n\n

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NIGC Seal. (PRNewsFoto\/National Indian Gaming Commission)<\/figcaption><\/figure><\/div>\n\n\n\n

If Sands was modestly impressive, U.S. tribal gaming broke out in a big way last fiscal year. It improved 5% to reach $40.9 billion, an all-time revenue record<\/a> for Native American casinos. One of the eight regions defined by the National Indian Gaming Commission<\/strong> was down from FY2021, namely Sacramento<\/strong>, despite an infusion of new product. Spreading the wealth, 55% of aboriginal casinos were modest earners, generating less than $25 million apiece. Particularly impressive was the Phoenix<\/strong> area, up over 15% from 2021. Keep up the good work, guys.<\/p>\n\n\n\n

Helped by an extra weekend day, Pennsylvania<\/strong> casinos were up 3% last month, reaching $278 million. Despite a 5% decline, Parx Casino<\/strong> retained top-dog status with $46 million. Second in the crowded Philadelphia<\/strong> market was Philadelphia Live<\/strong>, up 3% to $20 million, besting Rivers Philadelphia<\/strong>‘s $19 million, despite a 16% surge at the latter. Harrah’s Philadelphia <\/strong>faded 13.5% to $12 million, coming within striking distance of Valley Forge Resort<\/strong>, up 9% and just a hair under $12 million. Best of the regional properties by far was Wind Creek Bethlehem<\/strong>, whose $42 million represented a 2% gain. In the Pittsburgh<\/strong> area, Rivers Casino<\/strong> retained primacy with $27 million but ceded market share (-3.5%) to Hollywood Meadows<\/strong> ($17 million, +13%) and Pittsburgh Live<\/strong> ($10 million, +22.5%).<\/p>\n\n\n\n

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Even piddly Lady Luck Nemacolin<\/strong> ($2 million) saw a 5.5% revenue increase, a last hurrah for Churchill Downs<\/strong>. Elsewhere, Mohegan Sun Pocono<\/strong> slipped 4% to $17.5 million and Presque Isle Downs<\/strong> hopped 2% to $9 million. Hollywood Penn National <\/strong>was up 1.5% to $14 million and Mount Airy <\/strong>climbed 6% to an impressive $16 million. Among the satellites, Hollywood York<\/strong> hopped 13.5% to $7.5 million, Hollywood Morgantown<\/strong> leapt 21% to $5.5 million and newbie Parx Shippensburg<\/strong> eked out $2.5 million. Anybody get the feeling that the good satellite markets have been taken?<\/p>\n\n\n\n

Keystone State sports betting revenues were $34 million (less $11 million in hefty promotions) on wagering of $373 million. Internet casinos were more lucrative, bringing home the bacon to the tune of $135.5 million. The catchall Penn Entertainment<\/strong> license was predictably dominant with $58 million. Former favorite son BetRivers <\/strong>was elbowed aside by FanDuel<\/strong>, $27 million to $28 million.<\/p>\n\n\n\n

Illinois<\/strong> sports books scored $89 million in revenue in May, on handle of $822 million. That’s a 32% gain from last year. Market leaders were FanDuel ($36.5 million) and DraftKings<\/strong> ($26 million). BetRivers posted $9 million, PointsBet<\/strong> $6 million, Caesars Sportsbook<\/strong> $4 million and Barstool Sports <\/strong>$2.5 million. Nobody else was even remotely on the radar.<\/p>\n\n\n\n

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