Stevens doubles down; Bullish LV reopenings

Derek Stevens‘ 1,000-free-flights promotional gambit was such a wild success that the mogul has offered 700 airlifts more. But hurry: Stevens has extended his mega-comp to 12 additional cities, from Atlanta to

Tampa. We only quibble about Stevens adding Boston to his list: It’s such a Coronavirus vortex that maybe we shouldn’t be encouraging visitation from Beantown. “We knew there was a high demand for Las Vegas, and to see these flights book as quickly as they did is overwhelming and exciting,” said Stevens. “Whether people decide to visit my casinos or explore other parts of the city, this is a strong indicator of how Las Vegas can quickly be restored to its former glory.” Stevens certainly knows what players want; The D is promoted as “the only Sigma Derby horse racing game in Las Vegas.” Unfortunately, there is a fly in the ointment. According to The D’s Facebook feed, the free tickets are one-way only. So don’t leap at the offer unless you’re prepared to pay your freight home.

* Meanwhile, a slew of casinos have announced June 4 reopenings. They include, in no particular order:

Golden Nugget Las Vegas
California Hotel*
Fremont Hotel*
Aliante Casino
The Cannery
Gold Coast
Jokers Wild
The Orleans
Sam’s Town
Suncoast
Wynn Las Vegas
Encore**
The Cosmopolitan of Las Vegas
The Plaza Hotel & Casino
Sahara
The Strat
Boulder Station
Palace Station
Sunset Station
Santa Fe Station
Green Valley Ranch
Red Rock Resort***

*—Boyd Gaming had led investors to be believe these two casinos would be temporarily shuttered. Not so. What does Boyd know that we don’t? Also Eastside Cannery appears to have dropped off the list, perhaps to give Sam’s Town runway to get flush again. Boyd will open its pools only at The Orleans and Aliante.
**—Again, this goes contrary to downbeat investor guidance.
***—No mention of the Wildfire chain, which was supposed to be part of phase one.

All this indicates that demand is a good deal stronger than we were given to expect, although some of the north Strip properties are having to try a little harder. Rooms are being discounted 45% at The Strat and the Sahara is offering a free weekend stay for every weekend booked at full price. “Additional re-openings will likely depend on demand and which segments come back first/strongest rather than creating a cluster of properties,” wrote JP Morgan analyst Joseph Greff. Will a socially distanced Las Vegas be a success? Judging by regional reports filed by Global Gaming Business, it’s only working sporadically in the regional casinos. It’s certainly not going to be good news for the manufacturing sector: 100 slot machines have been removed at the El Cortez alone. Replacement cycle? What replacement cycle? One player-hostile move—raising midweek table-game minimums to scare up quick cash—strikes us as a particularly Bad Idea in a value-oriented time. Don’t give people one more reason to gripe about Vegas greed.

Although gambling accounts for roughly 33% of Strip revenue, the big resorts are going to have to lean on it more heavily than ever (despite reduced capacity) with so many hotel rooms, restaurants and shows off line. “Part of the reason these guys can charge $25 for a watered-down vodka soda is the energy and vibe around their resorts,” Macquarie Group analyst Chad Beynon told a reporter. If these clubs aren’t open and you’re not permitting the same party atmosphere, will people still come?” Add gubernatorial advisor Brian Labus, “Nobody comes to Vegas to spend time by themselves.” Before the crisis, Derek Stevens had been planning on cramming 4,000 people onto Circa‘s pool deck to watch sports. Good luck with that now. “It’s going to bounce back,” El Cortez General Manager Adam Wiesberg says, “And I think it will come back better than ever.” Not if it fixates on making a fast buck in a slow economy.

* Evidently more intent on making a nuisance than a point, Culinary Union members are staging another car caravan on the Las Vegas Strip tomorrow. Their ostensible purpose is to promote “transparency” (the Culinary’s new shibboleth) in how casinos plan to reopen. What it looks like is another bunch of yahoos honking horns and engaging in demagoguery. Says the Culinary, “The idea that each gaming company can come up with their own plans, keep those plans secret, and hope that one bad employer doesn’t harm workers and the entire industry is a potential disaster.” We agree. But this latest bit of political theatre provides more heat than light.

* Doubtless Nevada brothels will be among the very last businesses cleared for reopening in the Silver State. What will their ‘new normal’ look like? Perhaps they could take a cue from Switzerland.  For starters, the land of William Tell is proposing that only doggie-style and reverse-cowgirl sexual positions be permitted, as they minimize face-to-face contact. (We can’t believe we’re writing this.) Also, linens are to be washed between every sex act. Oh, and you’ll only get 15 minutes for your money. Does Steve Sisolak have the stomach to regulate this?