{"id":868450,"date":"2024-11-13T11:59:34","date_gmt":"2024-11-13T19:59:34","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/shop\/?p=868450"},"modified":"2024-11-13T11:59:36","modified_gmt":"2024-11-13T19:59:36","slug":"from-flyover-country-adieu-woo","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/blog\/from-flyover-country-adieu-woo\/","title":{"rendered":"From Flyover Country; Adieu, Woo"},"content":{"rendered":"
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Before we get to<\/strong> individual states and how they did in October, today we are in receipt of some very concerning news<\/a> from Jefferies Equity Research<\/strong>. Namely, that regional casino markets are seeing a downward trend in foot traffic, with October -4%. This isn’t good news for anybody and particularly bad for those markets that never rebounded from Covid-19<\/strong>. Should the economy tank in the next three-six months (and we have reason to believe it will), Jefferies is the canary in the coal mine. And with that cheery thought …<\/p>\n\n\n\n\n\n\n\n

Maryland<\/strong> is one of the few states doing better (+12%) than it did in 2019. Its revenues were flat last month, $160.5 million. People played the slots a bit more, the tables a bit less and it was all a wash. 80 percent of the market is concentrated between MGM National Harbor<\/strong> and Maryland Live<\/strong>, leaving a relative pittance for everybody else, least of all misjudged Horseshoe Baltimore<\/strong>, dwindling 7.5% to an embarrassing $14 million. MGM was, of course, out front at its D.C. behemoth, making $69 million (+3%) while its Cordish Gaming<\/strong> rival hopped 1.5% to $89.5 million. Century Casinos<\/strong>‘ hexed Rocky Gap Resort <\/strong>slid 11% to $4.5 million, while Ocean Downs<\/strong> also tumbled 11% to $7 million. By contrast, Hollywood Perryville<\/strong> caught a seasonal updraft, up 7% to $7 million.<\/p>\n\n\n\n

OSB wasn’t good for the sports books, with loose hold leading to a 12% decline in winnings ($49.5 million), despite a 24% surge in handle to $576.5 million. FanDuel<\/strong> was well in the lead with $27 million, as it traditionally holds much tighter than the competition. If you had winnings like these you’d be jolly, as Flutter Entertainment<\/strong> CEO Peter<\/strong> Jackson<\/strong> was at his most recent earnings call. DraftKings<\/strong> lagged badly by comparison, with $13.5 million. BetMGM<\/strong> and Fanatics<\/strong> were locked up at $3 million each, while Caesars Sportsbook<\/strong> and ESPN Bet<\/strong> each made roughly a million, which was a great deal more than BetRivers<\/strong> or anybody else could say.<\/p>\n\n\n

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A quick stopover<\/strong> in Detroit<\/strong> sees gambling winnings for the house vaulting 27%, although still 10% behind the pre-Covid days. Why so much better than last year? Don’t forget that workers were waging an ultimately successful strike in autumn of 2023. MGM Grand Detroit<\/strong> came up trumps, posting $49.5 million, a 32% moonshot (and even 1% better than 2019). Hollywood Greektown<\/strong> is double-digits behind the Good Old Days but gained 16.5% from last year to achieve $22.5 million. MotorCity<\/strong> occupied the $31.5 million middle ground, leaping 26.5% (no 2019 comparison was available).<\/p>\n\n\n\n

Missouri<\/strong> defied the doleful autumnal trend, flat with last year and yet 7% higher than 2019. Show-Me State casinos made $151.5 million. At $23.5 million, Ameristar St. Charles<\/strong> was also becalmed, enabling Hollywood St. Louis<\/strong> to play catch-up, gaining 11.5% to $21.5 million. (The two casinos rub elbows.) River City<\/strong> did just as well as Hollywood, up 10%, while Horseshoe St. Louis<\/strong> couldn’t capitalize on its downtown location, falling 9% to $10.5 million. Kansas City<\/strong> casinos were tightly bunched, with Ameristar Kansas City<\/strong> (-4%) enjoying a $15 million first place. Harrah’s North Kansas City <\/strong>was flat at $13 million, Argosy Riverside<\/strong> slipped 3.5% to $12.5 million and Bally’s Kansas City<\/strong> was close behind at $12 million (+1%), the only casino to take market share. Outstate, ditching table games may have been a bad move for Mark Twain Casino<\/strong>, which plunged 20% to $2.5 million. We have to chalk up an 18% plummet at Century<\/strong> Caruthersville<\/strong> to ongoing disruption, while Century Cape Girardeau<\/strong> hopped 8.5% to $5.5 million.<\/p>\n\n\n

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Illinois<\/strong> was a more complicated saga. It was 6% up to $137 million … until high-powered, new Hard Rock Rockford<\/strong> was backed out. Then it was 2% higher than last year and 5% down from 2019 on a same-store basis (and there are a lot of new stores in the Land of Lincoln). Hard Rock came a bit down to earth, grossing $11 million (an 89.5% catapult from its temporary-casino era), nipping Bally’s Casino<\/strong> in Chicago<\/strong>, with its $10.5 million or +41%. With Full House<\/strong> Resorts<\/strong> struggling to gain comparable traction in Waukegan<\/strong> ($8 million, +13.5%), the Bally’s result was good enough for third place. Despite being 3% down, Rivers Des Plaines<\/strong> had everyone eating its $42 million dust. Putting in good shows were Hollywood Joliet<\/strong> ($7.5 million, +9%) and Hollywood Aurora<\/strong> ($8 million, +3%), despite being on antiquated riverboats that Full House CEO Dan Lee <\/strong>loves to disparage. Less-happy numbers were posted by Grand<\/strong> Victoria<\/strong>, slipping 11.5% to $10.5 million and fourth place, a couple of increments behind Bally’s. Harrah’s Joliet<\/strong> rang up $9.5 million but that was a 7% slippage.<\/p>\n\n\n\n

The St. Louis<\/strong> market was good for business, especially DraftKings Casino Queen<\/strong>, jumping 18.5% to $7 million. Argosy<\/strong> Belle<\/strong>, in Alton<\/strong>, climbed 5% to $3 million. The only downstate casino to produce comparable growth was Walker’s Bluff Casino<\/strong>, hopping 13.5% to $2.5 million. Par-A-Dice<\/strong> ($5 million) and Golden Nugget Danville<\/strong> ($3 million) each ceded a percentage point. That was much better than Bally’s Quad Cities<\/strong> ($4.5 million, -7.5%) and Harrah’s Metropolis<\/strong> ($4.5 million, -5%).<\/p>\n\n\n

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Indiana<\/strong> is another yes-but state. Yes, revenue rose 8% to $197 million … but were only up 2% without Terre Haute Casino<\/strong> ($10 million last month) and down 9% compared to 2019, prior to powerhouse Hard Rock Northern Indiana<\/strong>. In Gary,<\/strong> of all places, Hard Rock simply vaporized the competition with $39 million, jumping 18.5%. If Hard Rock isn’t the best brand name in gambling, what is? It sure isn’t Caesars Entertainment<\/strong>, whose charmless Horseshoe Hammond<\/strong> barge leaked 12% to $20.5 million. Ameristar East Chicago<\/strong> took a 9% licking to $14 million, while Blue Chip<\/strong> (which primarily services Michigan<\/strong>) actually gained 2% to $10 million.<\/p>\n\n\n\n

The Indianapolis<\/strong> market has absorbed new capacity, as evidenced by the results at Horseshoe Indianapolis<\/strong> ($24 million, +1.5%) and Harrah’s Hoosier Park<\/strong> ($16.5 million, +7%). Strangely, the news that Full House Resorts<\/strong> was looking to flee the Ohio River<\/strong> area in favor of Fort Wayne<\/strong> seems to have redounded to the temporary benefit of Rising Star<\/strong> ($3.5 million, +5%). Bally’s Evansville<\/strong> ($14.5 million, +8%) had a good month, as did Caesars Southern Indiana<\/strong> ($20.5 million, +4.5%), the southern standout. Hollywood Lawrenceburg<\/strong> ($12 million, -4.5%) ceded business, as did Belterra Resort<\/strong> ($6 million, -6.5%) and French Lick Resort<\/strong> ($6.5 million, -4.5%).<\/p>\n\n\n\n

OSB revenues were a relatively mingy $35 million, down 22% despite a 25% eruption in handle, which achieved $538 million. We’ll break out the crying towels. (Not.) FanDuel<\/strong> ($13.5 million) edged out DraftKings<\/strong> ($11 million), whilst runners-up were BetMGM<\/strong> ($3 million), Bet365<\/strong> ($2 million) and Caesars Sportsbook<\/strong> ($1.5 million). ESPN Bet<\/strong> was barely a blip on the radar. We’ll see if the much-touted linkage of ESPN Bet to online accounts for ESPN<\/strong> proper does anything to move that particular needle. We’re hopeful but not optimistic.<\/p>\n\n\n\n

Our readers aren’t big<\/strong> on news from Macao<\/strong> but one story cries out for attention<\/a>. Sadly, it’s the passing of Galaxy<\/strong> Entertainment<\/strong> founder Lui Che Woo<\/strong> at age 95. Galaxy is one of the two dominant Macanese operators (Las Vegas<\/strong> Sands<\/strong> is the other), having formerly been yoked with Sands in a shotgun wedding. But it was Sheldon Adelson<\/strong>‘s way or the highway, and the Macao government stepped in to sever the two concessionaires. Woo wanted “Chinese restaurants and clear signs for exits and entrances<\/em>.” Adelson desired the very maze-like American casino designs that Woo decried. (We recently got quite lost trying to find a restaurant on the amorphous Venelazzo<\/strong> gambling floor.) The market repaid Woo with substantial business that continues to this day.<\/p>\n\n\n\n

But the real antipode to Woo was the reprehensible Stanley Ho<\/strong>. Where Ho made his bones with collaborating with Japanese occupiers during World War II<\/strong>, Woo remained loyal to China<\/strong>, eventually planting his flag in a liberated Hong<\/strong> Kong<\/strong>. There, he built up a construction business, and later a hotel empire from a single Holiday Inn<\/strong>. Where Ho collected giant truffles, Woo disbursed his fortune philanthropically. His annual peace prize has gone to, among others, The Nature Conservancy<\/strong>, the International Paralympic Committee<\/strong> and Jimmy Carter<\/strong>. Galaxy is also, it should be noted, a minority shareholder in Wynn Resorts<\/strong>. We can’t think of a better watchdog for Wynn’s shareholder interests. The man will be missed.<\/p>\n\n\n

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In contrast to Woo’s enlightened ownership style, we turn to some real cretins back home … <\/p>\n\n\n\n

Both sides are playing hardball<\/strong> at Virgin Las Vegas<\/strong>, where management refuses to budge from a niggardly contract offer and the Culinary Union<\/strong> (rightly) won’t accede to second-class status for Virgin rank and file. What inept Virgin management is putting on the table is a five-year deal with NO wage increase until mid-2026. Think about that. The present-day rate of inflation is 2.6%. How much do you want to gamble that it stays that low for three years? Even at 2.6%, Virgin employees would see their paychecks effectively shrink for three years running before belatedly trying to play catch-up with the economy. Every other Culinary-repped Las Vegas Strip<\/strong> employee is seeing substantial cost-of-living adjustments while Virgin leadership tells its workers to eat its poor-mouthing verbiage.<\/p>\n\n\n\n

Remember that Carl Icahn<\/strong> tried this two-tiered approach to casino wages in Atlantic City<\/strong>. It didn’t fly there (he went out of business) and it won’t do so in Sin City. Management will learn that the hard way when the picket lines go up in earnest on Friday. It’s going to be a lonely Formula One Weekend<\/strong> at Virgin. Besides, the Culinary literally can’t afford to back down. Ceding to management’s preposterous demands would set a terrible precedent (especially heading into initial contract talks at Venelazzo<\/strong>). Every other Strip casino would feel fully entitled to ask for givebacks and\/or special status when things get rough. The union needs to hang tough and bring the clowns responsible for Virgin’s unenviable market position to the bargaining table in good faith.<\/p>\n","protected":false},"excerpt":{"rendered":"

Before we get to individual states and how they did in October, today we are in receipt of some very concerning news from Jefferies Equity Research. Namely, that regional casino markets are seeing a downward trend in foot traffic, with October -4%. This isn’t good news for anybody and particularly bad for those markets that […]<\/p>\n","protected":false},"author":83928,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/posts\/868450"}],"collection":[{"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/users\/83928"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/comments?post=868450"}],"version-history":[{"count":2,"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/posts\/868450\/revisions"}],"predecessor-version":[{"id":868454,"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/posts\/868450\/revisions\/868454"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/media?parent=868450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/categories?post=868450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/shop\/wp-json\/wp\/v2\/tags?post=868450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}