MGM’s big rake in Washington; Resort projects power Massachusetts

It should come as no surprise that Washington, D.C., the land of smoke-filled rooms where sleazy deals are made, should be deliver a bumper crop of players to MGM National Harbor‘s 39-table poker room. Even with a truncated month of operation, MGM was responsible for $1.4 million of Maryland‘s $3.9 million poker haul. “We are either at capacity or near capacity most days, and we are regularly getting 100-150 name waiting lists for some games. It’s been incredibly high volume,” Manager Johnny Grooms told CardPlayer.com. He likens the room to the one at Aria, with a touch of Bellagio in the mix. The early results vindicate Groom’s early hypothesis “that there was an under-served population in Southern D.C. and Northern Virginia, and in the more expansive area down to North Carolina.” So far, the narrative that National Harbor will expand the market, not cannibalize it, seems to be largely holding true.

MGM’s also using its position near the nation’s capital to set up a lobbying shop on C Street for gaming interests (specifically MGM’s, although some will obviously be universal to the industry). Senior Vice President for Federal Government Affairs Ayesha Khanna will be MGM’s point person on Capitol Hill. If Caesars Entertainment would lease some office space from MGM, it would save Jan Jones Blackhurst a lot of jet lag.

* At the risk of taking a premature victory lap, Massachusetts Gaming Commission Chairman Stephen Crosby declared the Bay State’s megaresort-development program a success, even though none is close to opening. However, he cited various macro criteria they have achieved, including integration with other economic forces in the area, a high level of capital commitment and a “mid-range” (25%) tax rate. While he had kind words for Wynn Boston Harbor, which will certainly help Everett keep its recent ranking as one of the 10 best places to live in Massachusetts, Crosby reserved most of his laurels for MGM Springfield, which he credited with spurring billions in new, local investment. “Projects that may not have been possible without the casino, or that could have been mere one-off initiatives, like the Chinese railroad car assembly plant or the renovation of Union Station, have merged with MGM Springfield to attract other economic development, including a new innovation center, a cultural district, and a regional bike-share program,” he wrote.

Crosby also indirectly credited MGM Springfield with helping the city replace its minor-league hockey team (MGM and hockey are the new sports lovebirds.) After the Springfield Falcons flew the coop, Mayor Domenic Sarno and MGM execs prevailed upon the Portland Pirates to metamorphose into the Springfield Thunderbirds — anybody sense an avian theme here? Anyway, we agree with Crosby that casinos have been good corporate citizens in Massachusetts. Now about that third casino license in Taunton … that one’s at the mercy of the Donald Trump administration.

* Thanks to exaggerated revenue projections (both by the Commonwealth of Massachusetts and Penn National Gaming), there’s been a perception that Plainridge Park is struggling, even through it generates the most win/slot/day of any Penn-run casino. Another component of that perception was that Plainridge had been losing customers, drifting back to Twin River Casino, in Rhode Island. November’s numbers, however, were modestly up, according to Wall Street analysts, and December could fairly be called a blockbuster month. Plainridge’s slots shot up 12%, helped by an extra weekend and despite lower coin-in. Even lower hold didn’t hurt. Can we declare Plainridge a success and move onward?

* Let’s not get carried away with ourselves but there’s a glimmer of hope for sports betting. The U.S. Supreme Court has requested an opinion from the solicitor general (whoever it turns out to be) on New Jersey‘s petition to overturn the federal ban on sports wagering. Said American Gaming Association President Geoff Freeman, “We are encouraged that the U.S. Supreme Court has expressed interest in the problems posed by” the Bradley Act. The Supremes’ request doesn’t necessarily betoken a change of mind but it sounds like they’re open to some new thinking on the issue, which is always welcome. Don’t expect swift action, however.

* “While we are very happy to finally see VIP turn positive, we remain cautious on the outlook for this segment, which is driven by increasing concerns on Beijing’s stance on capital flight,” cautioned Union Gaming Group analyst Grant Govertsen. What led him to advise caution? A dramatic, 13% increase in VIP play in Macao in the final quarter of 2016. Also, some mass-market tables are billed as “VIP” to exempt them from smoking restrictions. However, the Chinese government may be succeeding at curbing capital flight to far-flung gaming destinations like Manila and Singapore, deciding it’s better to keep it in Macao.

* Vietnam has outlined its new, softer stand on casinos. Citizens will be allowed to gamble at either of two remote casinos, but only if their monthly income threshold hits $440. But the average Viet makes $183 a month, so one shouldn’t expect a stampede of players.

* With state budget deficits spiraling toward $2 billion, Pennsylvania lawmakers are going to have to expand gambling whether they like it or not. Some lawmakers say such a move is just around the corner but we’ve heard that before.