This is a head-scratcher. Despite sports betting sweeping our great country, Scientific Games is opting out of the sports-wagering business. And the lottery biz, too, even though that remains a robust market segment. Reported JP Morgan analyst Joseph Greff, “management noted that its plan is to fully divest these businesses and its goal is to move quickly (process well underway).” An IPO is one of several routes being contemplated for the spinoff. Greff viewed the announcement positively, especially if SGMS uses the proceeds to pay down debt. He estimates the company’s leverage could go from an eye-popping 9.6X equity to 4X. That would have Wall Street breathing more easily. Added Deutsche Bank analyst Carlo Santarelli, this crash diet would leave Scientific with three pillars: SciPlay, slot manufacture and i-gaming. Wrote Santarelli, “These business lines, in aggregate, generated roughly $1.0 bn of 2019 adjusted [cash flow]. SGMS again noted that it believes its digital gaming businesses will be comparable in scope to its land based gaming business in 3 years.” So Scientific is selling the present in hopes of making up for it in the future. It’s a radical move but the company shouldn’t lack for takers.
That Blue Wire podcasting studio in Wynn Las Vegas isn’t finished yet (expect an August debut) but Wynn Resorts is teasing us with hints of what to expect. The podcast team will include former NFL greats Cris Carter and Chris Long. The latter also hosts Green Light With Chris Long, which will become exclusive to Blue Wire. You’ll be able to see them through the full-length glass windows of the studio, which is handily just off the casino floor: “The sleek space features the latest technology for audio and video recording, a central set for four people in front of a 14-foot-high LED video wall, a second more intimate set for two people, an ultra-plush guest lounge with dry bar, sports memorabilia display wall, and private green room.” We’ll have to give it a gander when Global Gaming Expo brings us (back) to the Strip.
A “glitch” in the software? That’s the excuse BetMGM is using to avoid honoring $3 million in winnings to Michigan resident Jacqueline Davis after she scored big on the Internet casino. Although Davis was able to claim her first $100K, the balance of her winnings have been frozen by BetMGM. The would-be big payout came after Davis spent five straight days playing online, at one point getting up to $11 million in winnings (we would have quit there) before hitting a losing streak. BetMGM offered Davis a hundred grand plus thousands of dollars in free play if she’s sign a confidential settlement. But Davis wants everything she won. (Notice how casinos never dispute big losses by players as being mechanical failures?) Davis is taking BetMGM to court where the latter will have to prove the malfunction. The plaintiff intends to argue that by permitting that initial withdrawal, five days after the win, BetMGM essentially conceded that Davis’ jackpots were fair and square. We wish her luck but are concerned by her sleepless addiction to online games. She probably deserves her money—and some psychiatric help.
CQ Holdings is moving toward a deal to acquire Hollywood Baton Rouge, giving it two (low-grossing) casinos of the city’s three. Before that happens, current ownership is soliciting approval to move the casino operations on shore. Hollywood’s 859 slots and 12 table games into the atrium of its hotel, which is to see from $21 million to $25 million, cannibalizing valet parking in the process. A sports-betting bar will also be added.
Jottings: UAW-represented casino workers in Atlantic City will rally tomorrow and march up the Boardwalk to press local gambling houses to go smoke-free. Representatives of the American Heart Association and Americans for Nonsmokers Rights will address the troops … Sens. Catherine Cortez Masto (D) and Jacky Rosen (D) joined MGM Resorts International CEO Bill Hornbuckle yesterday to unveil a new rooftop solar array, 100 megawatts strong. When active, it can supply as much as 90% of daytime electricity for 13 MGM properties. MGM hopes to reach 100% renewable power by 2030 and reduce greenhouse-gas emissions per square foot 45% by 2025. We fully approve … Hornbuckle has a date Thursday at Bellagio, where (along with a carousel horse) will celebrate the reopening of O. Other than defunct Zumanity, all Cirque du Soleil shows should be up and running again by October, when Ka returns. Incidentally, the Bellagio buffet reopens July 16, albeit on a curious 7 a.m-3 p.m. schedule .. Thanks to the new Arizona gaming compact, the Gila River Indian Community will build a fourth casino, near Chandler. The timeline for completion is December 2023. The casino project is budgeted at $100 million and some Chandler citizens are grumbling about it already … A former restaurant in Rockford, Illinois, will soon become the next temporary casino in the state. 815 Entertainment got the go-ahead to a three-month, $9 million conversion of the ex-Giovanni’s. The eventual goal is to operate for two years until a Hard Rock International casino (still unapproved) can debut. The temporary casino will be slots-only (736 of them) … Elsewhere in the Land of Lincoln, that prospective Chicago casino lost out to Rivers Des Plaines, which has been designated the official sports book of the Chicago Bears. As if Des Plaines didn’t have enough going for it already! Expect to see Bet Rivers and Rivers Casino signage at Soldier Field this autumn.
