{"id":841879,"date":"2023-02-28T09:34:15","date_gmt":"2023-02-28T17:34:15","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=32389"},"modified":"2023-09-14T14:03:23","modified_gmt":"2023-09-14T22:03:23","slug":"vegas-booming-churchill-downs-messy-mega-jottings","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/blog\/vegas-booming-churchill-downs-messy-mega-jottings\/","title":{"rendered":"Vegas booming; Churchill Downs “messy”; Mega-Jottings"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

Nevada<\/strong> gambling winning catapulted 18% last month\u2014yes, almost a 20% increase over post<\/em>-Covid numbers (although January 2022 was dampened by Omicron<\/strong>). The good times just keep on rolling, to the tune of $1.2 billion. The Las Vegas Strip<\/strong> led the charge with a 26% vault, grossing $713 million. Strip slot revenue grew 24% on 24.5% more coin-in. Table games were good for the house, with winnings up 23% on only 5% more wagering. Baccarat saw players take a hiding, as the house won 42.5% more on 22% bigger betting.<\/p>\n\n\n\n

Downtown<\/strong> kept pace, leaping 25.5% to $85 million. Laughlin<\/strong> (+1%, $42 million) missed out on the party. The Boulder Strip<\/strong> was up 13% to $96 million, North Las Vegas<\/strong> gained 8% to $24 million and miscellaneous Clark County<\/strong> jumped 17.5% to $152.5 million. Utah<\/strong>-fed Mesquite<\/strong> was up 8.5% to $16 million. But favored Mormon getaway Wendover<\/strong> slipped 2% to $21 million. A harbinger of things to come? As Wendover goes, so goes Nevada. Indeed, Reno<\/strong> was down 19% to $42 million, while Lake Tahoe<\/strong> nudged 2% higher to $17 million. Sparks<\/strong> continues on the comeback trail, up 17% to $14 million.<\/p>\n\n\n\n\n\n\n\n

\"\"<\/figure>\n\n\n\n

Wall Street<\/strong> analysts paid relatively little attention to Churchill Downs<\/strong>‘ 4Q22 earnings report, although J.P. Morgan<\/strong>‘s Omer Sander<\/strong> took a look and found it “somewhat messy.” This was partly because of the integration of Peninsula Pacific<\/strong> casinos, as well as a restacking of revenue segments such that live racing and historical horse racing are now reported as geographic categories rather than by property. CHDN’s $480 million in 4Q22 revenues was a hair under Morgan projections, but $181 million in cash flow came out slightly ahead. Slot-route Rosie’s <\/strong>contributed $62.5 million, as casinos outperformed and racing ($175.5 million) underperformed. The company is carrying $4.6 billion in debt, thanks to the pricey Peninsula Pacific acquisition ($2.7 billion), along with the much-cheaper Exacta Systems<\/strong> purchase (a thrifty $250 million). The beauty of the Exacta deal is that now anybody wanting horsie slots, er, historical racing has to go through Churchill Downs to get it.<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

“We think there is a lot to like in the CHDN story with several capex projects across the portfolio (Churchill Downs Racetrack<\/strong>, historical horse racing in Kentucky<\/strong>, Virginia<\/strong>, and New Hampshire<\/strong>, and casinos expansion in Indiana<\/strong>),” Sander wrote after the formal earnings call. The company is limited to 5K horsie slots in Virginia, presently climbing from 2,606 to 3,750 when two more slot-route parlors open. The company is “monitoring” the rollout of bonafide casinos in the Cavalier State, although “any impacts would be most immediately felt at its Rosie\u2019s Hampton<\/strong> location given its proximity to Rivers Portsmouth<\/strong>.” The company has expanded to Iowa<\/strong> and New York State<\/strong>, with Hard Rock Sioux City<\/strong> and Del Lago<\/strong> casino contributing $46.5 million.<\/p>\n\n\n\n

The next 12 months will be busy for the company, as Derby City Gaming<\/strong> in Kentucky is completed this spring, Derby City Downtown<\/strong> opens sometime after mid-year and next year brings Ellis Park<\/strong>‘s debut. A New Hampshire horsie-slot parlor opens next year and\u2014last but far from least\u2014Terre Haute Casino<\/strong> bows early in 2024. Tally ho!<\/p>\n\n\n\n

When placing Academy Awards<\/strong> wagers, now’s the time to take the National Board of Review<\/strong> Curse into account. Then NBR has reliable anti-Oscar mojo. Whatever it anoints crumbles down the stretch. Last year it placed its clammy benediction upon Top Gun: Maverick<\/em> (currently a +1600 long shot) and Steven Spielberg<\/strong> (+600). Neither has fared well this awards season, with the traditionally conservative Producers Guild<\/strong> slamming the coffin lid on Maverick<\/em> last Saturday by going with the film that’s become a phenomenon, Everything Everwhere All At Once<\/em> (-1200), which also swept the Screen Actors Guild<\/strong> awards. The modestly budgeted, surrealist movie is only likely to pick up even more momentum at next week’s Independent Spirit Awards<\/strong>, making the Oscars a foregone conclusion, with DraftKings<\/strong> favoring Everything<\/em> to win five statuettes outright and vie closely for two others.<\/p>\n\n\n\n

\n