There were two clear winners in Illinois last month and one big loser — Penn National Gaming. Performing worse than expected, Penn had double-digit declines at all four of its casinos: Empress Joliet (-14%), Hollywood Aurora (-14%), Alton Belle (16%) and parent GLPI‘s new acquisition Casino Queen (-14%). In contrast to these listing ships, Harrah’s Joliet sailed on an even keel, posting flat revenues from last year. And Neil Bluhm‘s Rivers Casino in Des Plaines was 4% up. Boyd Gaming‘s Par-A-Dice slipped 10% and the bloom is definitely off the rose for Casino Rock Island (-14%). I won’t belabor what these comparisons mean for Illinois’ casino industry. Responsible lawmakers should be able to look at the numbers and reach a responsible conclusion. Whether they can is the $139 million (statewide gaming gross) question.
Thanks a lot. That’s probably what some Massachusetts lawmakers are thinking about Boston Mayor Martin J. Walsh. His bigfooting of the casino-licensing process will push the payment of $85 million in licensing fees into that next fiscal year. Much of that money is earmarked for the rainy-day fund but, in an irony sure to be keenly felt at Suffolk Downs, it also contains horse-racing subsidies.
Whoops! When a casino changes hands in Detroit, the mayor and city council are supposed to give it their blessing. This didn’t happen when Dan Gilbert purchased Greektown Casino-Hotel and Gilbert apparently didn’t seek civic approval either. The relevant law is pretty clear that Gilbert couldn’t have purchased Greektown, “nor may any party other than the designated developer operate a casino or casino complex pursuant to the development agreement, unless the mayor and City Council give their consent to the sale or transfer.” (Emphasis added.)
Greektown is in good standing with state regulators but the Detroit City Council seems at sixes and sevens over how to handle the matter. Said a flummoxed council President Brenda Jones, “We have been talking about this since last year. We should be able to get some type of response of what’s going on, and know what’s going on as a body who is supposed to approve what has happened.” The city council could try to unravel the months-old deal but would probably rather find some way to ratify the inevitable, especially since Gilbert is a homeboy.
Lake Tahoe‘s eternal volatility is the subject of an in-depth report from the Reno Gazette-Journal. Despite steep declines over the last decade (36.5%), owners continue to wax optimistic about the market, even if some commentators do not. “It’s a seesaw that Tahoe always has,” remarks gaming consulting Ken Adams, referring to the too-little, too-much snow vagaries which shape Tahoe’s fortunes.
However, Full House Resorts has pulled off a double-digit increase in business after renovations to the Hyatt Grand Lodge Casino. Both the Horizon Casino Resort (pictured) and the Cal-Neva Resort Spa & Casino are closed for upgrades, and Caesars Entertainment is putting in new slots and carpeting at Harrah’s Lake Tahoe. When you think about all the tribal competition that interdicts the Sacramento-Lake Tahoe commute, it’s impressive that so many casinos there are still standing after the last decade.
Yes and no on Tahoe. The Cal Neva has gone through a few iterations of financial troubles, so has the New Horizon (ColSux really to blame) and Caesars shuttered Bill’s. But yes, mostly are still standing and as a Tahoe enthusiast, I am glad that companies are re-investing and re-inventing some of the product there.