No cause for jubilation; Cool spring at IGT

Audience feedback on the revamped, urbanized Jubilee! is starting to pour in … and it’s devastating. How bad can it be, I hear you say? Try this: “Like trying to save the Hindenburg with a bicycle pump … hands-down the worst show I’ve ever seen … The Titanic sinks and turns into the Statue of Liberty for some reason … I think I booed twice … The mic was not functioning for many songs, the curtains would not go up and down as needed … What has been the classiest showgirl revue in the history of Las Vegas has been ‘reinvented’ to nothing more than a trashy, discombobulated, nonsensical amalgam of disconnected dance numbers performed by a talented ensemble which seems to be lacking leadership and direction.”

Get the picture? Maybe Caesars Entertainment CEO Gary Loveman isn’t personally to blame for this mess but he’ll do in a pinch, having green-lit the redo. I had a soft spot for the old Jubilee!, even if it was High Camp in many places. I dread having to go back to see its successor.

International Game Technology‘s citation of “tough industry conditions and a challenging operating environment” prompted J.P. Morgan analyst Joseph Greff to reduce earnings projections from the stock. He also opined that IGT was in from rough sledding, due to reduced market share and weakness in gross gaming revenues in regional markets. IGT announced further cost-cutting measures, to the tune of $30 million, cutting global staff 7%, as well as reduced earnings projections. Greff said the year would be “tough,” due to “stagnating North American slot replacements, lower year-over-year activity in new/expansion markets in the US, a no/negative growth US gross gaming revenue environment, and heightened competition in its core product sales and gaming operations segment,” the latter representing 85% of revenue. Attractive cash-flow numbers and interactive-gaming numbers softened the blow a bit.

The late Don Barden‘s casino empire continues to be carved up, piece by piece. Full House Resorts just purchased Fitzgerald’s Casino, in Tunica, from Majestic Star Casino. Full House plans to reinvest $7 million in the property. It was able to get the place for a bargain-priced $62 million. Had it had to pay the industry-average seven times cash flow, it’d be looking at a $71 million price tag. Full House inherits 1,100 slots, 20 tables, 506 hotel rooms and five F&B venues … plus a brand name that’s seen better days.