In its latest salvo against Station Casinos, the Culinary Union has commissioned a study to determine if the Palms will achieve an ROI pleasing to Wall Street. Its conclusion is that the revamped casino-
hotel will need to generate cash flow of $130 million to hit 13% ROI. However, Unite-Here Gaming Research puts the annual EBITDA at $117 million, which is hardly a disgraceful shortfall, although the Culinary estimates it take Wynncore-sized room rates to get that far. True, Station management has ratcheted expectations down from “mid-teens” ROI to “double-digit.” But how would the Palms perform had Station left it in its previous state?
“Investors in Red Rock Resorts should hold the company to such projections by insisting on property-level financial breakout for Palms going forward. There should be some accountability if Red Rock Resorts management cannot make good on its word after spending a billion dollars on Palms,” said Unite-Here’s Jason Kordosky. Forgive me but I don’t think the Fertitta Brothers are losing any sleep.
* Speaking of EBITDA, Churchill Downs‘ 1Q19 cash flow from casinos was considerably better than expected, particularly from “historical racing” venue Derby City. By contrast, online wagering was flat, generating $17 million in cash flow. If the current wave of M&A talk generates any property spinoffs look for Churchill Downs to be an aggressive buyer.
* Offshore sports books are taking odds on whether Avengers: Endgame can break the $1 billion mark on its opening weekend. (I’m still getting over Infinity War, which seems to have been a reference to 
the movie’s inordinate length.) “For Avengers: Endgame to surpass $1 billion it would need to surpass it’s [sic] already lofty expectations in China and the United States. Tony Stark and company may be able to defeat Thanos, but surpassing $1 billion may prove to be an insurmountable foe,” writes oddsmaker DJ Fields. Domestically, the Marvel franchise is expected to break its own $257,698,183 opening-weekend record. Yes, but without Loki (the indispensable Tom Hiddleston) and Heimdall (Idris Elba) what’s the point of going?
* Farewell and good fortune to National Indian Gaming Commission Chairman Jonodev Osceola Chaudhuri, who steps down May 15. While not as high-profile as National Indian Gaming Association President Ernie Stevens, Chaudhuri is just as important in Indian Country. “During my time as Chairman, the Commission worked hard at every turn to stress strong partnerships and consistent communication with tribal gaming operations to achieve compliance with the Indian Gaming Regulatory Act. The Commission works with tribes to ensure they have the tools necessary to effectively regulate their operations and meet IGRA’s requirements,” he said. His successor has yet to be named.
* It’s just plain farewell to the Mother Lode slot game at Binion’s Gambling Hall. It will surely be missed by some.
