MGM Connecticut hopes fading … for now

MGM Bridgeport will have to wait a bit. According to Connecticut Speaker of the House Joe Aresimowicz (D), the best chance of passage of any gaming-related legislation is narrow. Expressing misgivings about the consequences of further diluting the Nutmeg State’s gambling market Aresimowicz said, “we have to have a comprehensive view of gambling here in the state of Connecticut and what that looks like.” That’s clearly not a near-term goal. Bridgeport‘s Rep. Steven Stafstrom (D) added, “We could pass a bill this year that allows an RFP process to go forward and then next session come back and act on a more comprehensive gaming strategy for the state that may or may not include pieces that came out of that RFP process.”

Either way, it buys time for Foxwoods Resort Casino and Mohegan Sun to get on with their satellite casino in East Windsor. If the Lege is presented with a looming fait accompli, will it be less inclined to risk the quarter-billion-dollar bonanza that is tribal gambling in Connecticut? MGM Resorts International, meanwhile, is talking out of both sides of its mouth, stumping for a $675 million resort yet saying that the tribal casinos have been rendered obsolete by competition in neighboring states, Internet gambling and the prospect of legal sports betting. That doesn’t make a heckuva a lot of sense to us, but MGM has to perform some legislative CPR. A Public Safety & Security Committee vote to seek competitive bids for a new casino appears dead until the next session. The legislators who voted for it are playing Russian roulette with casino revenue-sharing but don’t seem to care.

* Four Winds Casino in South Bend, Indiana, may not be the threat to Blue Chip Casino that was initially feared, especially since it’s only a Class II facility (no tables). While Blue Chip was slightly better than flat with last year, that $15 million was enough for the Boyd Gaming casino to post its strongest March since 2013. “Apparently, the market decided table games are important,” opined Ed Feigenbaum, editor of Indiana Gaming Insight.

* Genting continues to pinky-swear that it’s business as usual at Resorts World Las Vegas, saying it has let $600 million worth of contracts. Completion is pegged for late 2020. However, it is indicative of Genting’s priorities that it recently stated, apropos of Japan, “Genting Singapore continues to be engaged in this significant business opportunity and Genting Singapore’s management is diligently preparing for the eventual bidding process.” We’ll bet they are.

* The long-awaited bridge to Macao “may open to traffic as soon as June,” according to Deutsche Bank analyst Karen Tang. Based on that information, she estimates that mass-market play will go from 8% of Macanese market share to 13%. (That’s music to Sheldon Adelson‘s ears.) At the risk of belaboring the obvious, Tang wrote, “This should boost Macau visitations, initially from Hong Kong and eventually also from China, as the bridge connects the Hong Kong airport to Macau in a 30-minute journey. This is positive not only for mass gaming but also for retail and hotels.” Currently, 30% of Macao visitors arrive by ferry from Hong Kong.

In other news, Sociedade de Jogos de Macau continues to fall farther behind on Lisboa Palace. It’s now looking at a late-2019 opening. At this rate, SJM will be lucky to have the place done before its concession renewal comes up for review. SJM’s Ambrose So continues to insist the megaresort will be finished later this year and start booking business early next year. Less sanguine are Sanford C. Bernstein analysts, who think an early 2020 opening is not out of the question.

* Mark your calendars for August 3. That’s when Las Vegas institution Brad Garrett becomes the new voice of Eeyore in Disney‘s Christopher Robin, starring Ewan McGregor. Garrett seems exceptionally well cast as the gloomy gray donkey but it remains to be seen how much of a culture shock a CGI Winnie-the-Pooh and friends are, as we’re so used to seeing them in two-dimensional animation.

This entry was posted in Boyd Gaming, Foxwoods, Genting, Indiana, Japan, Macau, MGM Mirage, Mohegan Sun, Movies, Politics, Sociedade de Jogos de Macau, The Strip, Transportation, Tribal. Bookmark the permalink.