In a benchmark development, three of the four major Las Vegas Strip operators posted higher midweek rates for the July 4-July 10 period than in 2019. Caesars Entertainment was flat, probably due to its sheer proliferation of hotel rooms. MGM Resorts International inched up 2%, Wynncore was +22% and Venelazzo rose 9%. And we’re not even into convention season yet. Weekend rates tended to be stellar: MGM leapt 41%, Caesars hopped 19%, Wynn Resorts vaulted 54% and Las Vegas Sands was up 28%. Obviously the holiday weekend is a big contributor to this phenomenon but who would have thought the Strip would be outperforming 2019 so soon?
Perhaps visitors got a sneak peek at WalletHub‘s finding that Nevada is the third-most-fun state in our great country. It’s tops (like, duh) in access to casino and fourth in arts, entertainment and recreational venues. Surprisingly, the Silver State is 15th in access per capita to amusement parks and 17th in performing-arts theaters (all those casino showrooms, you know … although Las Vegas boasts a remarkably vigorous theatre scene). We could do better in access to national parks, ranking only 24th. Only California and Florida outdid Nevada (we blame Disney), while Mississippi and West Virginia are the least-fun places to be. Nevada has the fifth-fewest marinas per capita but, with the way Lake Mead is shrinking, can you blame us?
But we’re kind of digressing here. The positive surge in room rates on the Strip was prefigured in a recent report by JP Morgan analyst Joseph Greff, who wrote that the “Las Vegas ecosystem continues to get better.” He particularly liked the Roman Empire, raising his price target on CZR stock to $129/share. Leo the Lion got some love, too, his price target going up to $52. If you think things are good now, Greff argues, wait until fall with the coming of football season, when William Hill and BetMGM will come into their own. “In addition to the positive operating momentum, we have increased confidence in an LV Strip group recovery after spending time with asset heavy lodging REITs this week … and their enthusiasm on the rate of group recovery,” Greff wrote.
He predicted that margins and profits for Caesars would improve month over month, as the company benefits from strong near-term demand. “In Las Vegas, the leisure consumer has come roaring back which should be supplemented by a 2H21 convention slate that is nicely ahead of 2019.” And it’s not just Vegas: “non-core customers” are powering the regional-revival story. As for i-gaming and online sports betting, where Caesars owns the operation lock, stock and barrel, Greff understatedly called it a “nice addition” to the empire. As for MGM, he saw it benefiting from the removal of Covid-19 restrictions, meaning more tables, slots and amenities. He saw it as also getting a boost from increasing airlift capacity into Sin City. Conventions “will help bridge the gap between midweek and weekend occupancy at high flow through.” Greff didn’t say why WYNN and LVS were left out of his roseate report but it is certain that this rising tide will lift their boats as well.
Indiana sports betting continued to slip last month, generating $255.5 million in handle. Unfortunately, a lean sports calendar (last month’s Indianapolis 500 excepted) means that a full comeback will have to wait until NFL season arrives. Operators booked $19 million in revenue, led by BetMGM’s $2.5 million. In terms of handle, BetMGM was also tops with $29 million, followed at some considerable distance by PointsBet ($11 million), William Hill ($8 million), BetRivers ($7 million), newcomer TheScore ($3 million) and Unibet ($1 million). For those Caesars execs wrongheadedly contemplating a rebrand of William Hill to Caesars Sports, we note that the latter did no handle in the Hoosier State and yet managed to lose money for the month. We rest our case.
Our Atlantic City bureau reports that Bart Blatstein scored a coup at Showboat by hosting a shoot for Netflix‘s Army of the Dead, engendering 11,000 hotel rooms occupied over a three-month period. (The Boardwalk overrun by zombies? Isn’t that a little too close to reality?) Aptly, the defunct Atlantic Club was employed to depict what a post-zombie A.C. would look like—i.e., Colony Capital run amuck. Also shooting in Atlantic City, Halle Berry‘s Bruised. Blatstein has opened a $7 million arcade and plans to break ground on a new water park shortly. Who needs gambling? Quoth our source, “He seems to be doing more than A.C. government for A.C.” Can’t argue with that.
We also got the following bulletin about the curious promotional policies at Philadelphia Live: “[Mrs. Source] got no donuts. She got an email last week from a ‘host’ about a ‘invitation only party’ for (last) Saturday with hors d’oeuvres 6-8 PM. When she replied, she was told it ‘closed reservations’ @ noon Friday. No donuts, no party, their (total lack of) benefits have ‘done the talking’ for Philly Live. We went to A.C. instead on Friday, Monday, and Wednesday, and she told them that. Overnight she got emails from three different ‘hosts’ about a new invitation for tomorrow, Saturday. So far, no surprise, no response.” Cordish Gaming is never going to catch Parx with tactics like those.
Oh no! The Clairvest/Groupe Partouche bid for a casino in Japan is doomed. Why? They’ve hired William Weidner, whose reverse-Midas touch could do for Clairvest what it did for Lucky Dragon. Weidner, you may recall, was sacked without severance by surrogate father Sheldon Adelson, back in the days when Weidner was with Las Vegas Sands—but not before Weidner testified that “all Chinese look alike” (we wonder if he feels the same way about Japanese). Weidner’s Global Gaming Asset Management, a collection of casino refugees, recently got ejected from the Philippines, making it the perfect choice for Japan’s dysfunctional casino-selection process. If the presence of Weidner weren’t taint enough, the ragbag of executives includes Mario Ho, youngest scion of—you guessed it—Stanley Ho. As we’ve seen from Lawrence Ho‘s studious concealment of his business links to Dear Old Dad, the apple doesn’t fall far from that particular tree. His remit will be promoting e-sports. As for Groupe Partouche, it’s hoping that the third time will be the charm, having been bounced from Tokyo and Nagasaki. As for new host city Wakayama, it’s stuck with Clairvest et. al., as that’s the lone remaining bidder. If it wins, expect the megaresort to open in the Japanese version of the near future: 2027. Hell, even MGM CEO Bill Hornbuckle, while still keen on Osaka, complains that the decision is taking “way too long.” You said it, Bill.
