Massachusetts almost reached 2019 levels, coming up 4% shy with an April gross of $84.5 million. The commonwealth’s three casinos did this despite having to operate at 40% of capacity (all capacity limits will be lifted May 29). Plainridge Park brought up the rear, down 11% with a gross of $12.5 million. MGM Springfield was flat, which is good news considering how it has struggled, posting $22 million win despite an unlucky month at the tables (-32.5%). Encore Boston Harbor (which wasn’t operational in early 2019) rang up $50 million, $29 million from slots and $21 million at the tables. Except for Wynn, JP Morgan analyst Joseph Greff still has gloomy forecasts for Plainridge and MGM Springfield this quarter, down 14% and 12% respectively. Encore is predicted to be boffo, +35%.
Slot addict and social influencer Brian Christopher has announced that he’s going to start boycotting casinos that permit smoking … 18 months from now. Or as Americans for Nonsmokers Rights put it “he will prioritize smokefree casinos.” (Does that make it a non-smokers’ non-story?) Christopher visits an average of 40 casinos a year, so he’s going to have to be pretty selective and more or less boycott Las Vegas. He’ll be in a particular quandary when it comes to the Plaza Hotel, which features a Christopher-branded slot lounge filled with his favorite games. Plaza CEO Jonathan Jossel told us, “We have nothing to add. It’s not something we are considering right now; however in his area it will go smoke-free on June 1.” So Christopher has already wielded some influence in Glitter Gulch after all.
“Today I make the pledge to prioritize visiting smokefree casinos beginning 2022, and to frequent only smoke-free casinos commencing 2023. I am putting the health of myself and my employees first, and I hope that casinos choose to do the same for their employees and guests,” Christopher said, although if he sticks to his vow he be out of a job come 2023. “As the gaming industry is now experiencing the biggest rebound and perhaps one of the most profitable years to date, I ask that you remember that our health is of the utmost importance while considering to remain permanently smokefree, and fulfill that promise for generations to come.” We agree but think Big Gaming was at that inflection point one year ago and was too timid to move. What’s going to change its mind now?
There was some unpleasantness at International Game Technology last week, as board member (and former CEO) Chris Neville resigned and burned his bridges behind him. In a press release he apologized to shareholders “for my inability to fix what I see are major issues inside of IGT and get the company back on track.” What might those issues be? Favoritism toward certain shareholders, blamed on CEO Marco Sala and the current board. “When I was a director of the company I requested more than a dozen times for internal documents that were material in nature that had direct consequences for all shareholders only to have been refused to view any of these documents by the board and the company lawyer,” Neville wrote.
He then threatened to go the whistleblower route, saying he will “will work with the regulatory authorities to make sure all shareholders are treated on a go forward basis in an equitable and fair manner. No inside group within the company should receive special treatment on any transactions … and I will make sure this does not occur for our shareholder base.” Neville concluded by predicting “the truth will eventually come out on all of those involved who are acting not with the fiduciary duty of our great shareholder base in mind.” Paging Fox Mulder …
Despite this ominous missive, Credit Suisse analyst Ben Chaiken initiated coverage of IGT the next day with ‘outperform’ rating, citing IGT’s strong lottery business. He also liked its reduced leverage, and its growth potential in 2022 and 2023. Despite a slowed replacement cycle on the manufacturing side, Chaiken was bullish on IGT’s lottery operations (especially in Italy) and its cost-cutting measures, some $200 million worth. The former were considered a particularly valuable tail wind amid the slowdowns caused by Coronavirus. He cited slower casino openings as a concern, but not a major one.
We said the devil would be in the details of Florida Gov. Ron DeSantis‘ blockbuster compact with the Seminole Tribe. Is it ever! On the very final page of the lengthy compact is the right for the signatories to return to the bargaining table in three years and negotiate Internet gambling, piggybacked onto online sports betting. Needless to say, this has gaming opponents’ hackles raised. “What Floridians should think about is: Do they want gambling to remain in the three dozen places where it happens today—physical locations—or do they want gambling on their cell phones?” So queried state Rep. Randy Fine (R), himself a former gaming exec. Stop Predatory Gambling‘s Les Bernal is less circumspect, calling i-gaming the “endgame” of the Seminoles. “They’ve really wanted to go online for a long time, but the public support has not been there for online gambling,” he groused. “We’re talking about online slots, roulette and full casino games, because that’s where the money is.” Compared to sports-betting revenues, yes. Someone must have been listening because DeSantis and the Seminoles just agreed to trim the language from the compact.
Seeing Jeffrey Soffer juiced into a casino via compact language that allows gaming licenses to be moved to within 15 miles of existing Broward County casinos, Donald Trump aimed a squirt of greasy flattery at state Senate President Wilton Simpson (R), endorsing him for agriculture commissioner, although Simpson hasn’t announced a candidacy. Soffer donated $100,000 to DeSantis’ reelection committee whilst compact negotiations were in progress, a pretty crass bit of “pay for play,” even more so than Trump’s. DeSantis, meanwhile, is triangulating like crazy between his stance as candidate that he would “not advocate for the expansion of gambling” and his recent proclamation of the Seminole deal as “larger and more expansive than any other gaming compact in U.S. history.” Yes, it’s an Olympic flip-flop but we don’t mean to say that like it’s a bad thing. The guv came to his senses.
The Seminoles are being pretty disingenuous themselves, making proclamations that say the pact “keeps Florida family friendly by delivering the most revenue share with the least amount of gaming.” Four new casinos (three of them tribal) and online sports betting? Nah, that’s hardly noticeable. (Not!) Some lawmakers have agita on the prospect, fretting over the compact’s three-decade lifespan. As for moving gaming licenses around the state, Simpson says, “If we would have taken up the issue of portability, it would have created an environment that may have made this so big, we couldn’t have gotten the compact done,” although No Casinos Director John Sowinski thinks Simpson isn’t doing enough to slam the door. He’s not alone. “My position is, candidly, district-selfish. We don’t want a casino in Miami Beach,” said state Sen. Jason Pizzo (D). “I understand portability is off the table, so far, but I’m also concerned about dormant licenses/permits being resurrected.” Indeed, unless the language is drafty very carefully, gaming portability could bring about a veritable night of the living dead.
Jottings: Having been thwarted in their attempts to block a Catawba Tribe casino, the Eastern Band of Cherokee is looking at building a third casino. Nicknamed “Project Commonwealth,” it may be a thrust into Virginia, where casinos are newly legal. An unnamed, publicly traded gaming company would be a joint-venture partner … United Kingdom casinos reopened yesterday, following a six-month Covid-19 lockdown. Why? “The UK has the lowest vaccine hesitancy rates in the world.” Given the desire to socialize again, one casino executive predicted this would be “the year of bingo” … The lifting of mask mandates in Nevada is leading to dangerous complacency. Just listen to Emerald Island Casino owner Tim Brooks, poster child for not following Coronavirus news … Sports betting is still alive in Missouri, where the bill has been advanced to the House Emerging Issues Committee.
All casinos need to be legislated to be smoke free as soon as possible!