Ohio, Illinois ebullient; MGM expects good things; Scandal in NFL

Ohio casino revenues were up 13% from 2021, yielding $179 million in player losses. Slots-only MGM Northfield Park posted a $22.5 million haul, up 17%, while Jack Cleveland vastly expanded its table game inventory and saw table play rise 24.5%. The downtown casino grossed $20 million, a 10% gain, while Jack Thistledown inched up 6% to $14.5 million. Hollywood Toledo made $18 million, a 3% nudge, and Hollywood Columbus crept up 5% to $18.5 million. Hard Rock Cincinnati leapt 31% to $19 million, Scioto Downs climbed 13% to $18 million and Miami Valley Gaming vaulted 29% to $17.5 million. Belterra Park was up 5% to $7 million, while other outlying racinos prospered even more. Hollywood Dayton gained 7% to $12 million while Hollywood Mahoning Valley‘s 13% jump was good for $12.5 million.

While Illinois‘ February gambling revenue ($93.5 million) was 8% off 2019’s torrid pace, it was a 20% improvement on last year. For once, there was no bad news for anyone. Hard Rock Rockford‘s temporary facility pulled in $3.5 million, while dominant Rivers Casino Des Plaines grossed $32 million (+9.5%). Bally’s Corp. finally got some good news at Bally’s Quad Cities, where $4 million represented a 55% jolt. Grand Victoria Elgin leapt 29% to $12 million, Empress Joliet jumped 24% to $7 million but Harrah’s Joliet was flat at $11 million. Hollywood Aurora sprang 28% to $8 million. Further south, Par-A-Dice gained 6% to $4 million, Harrah’s Metropolis sprang 44.5% to $4.5 million and DraftKings Casino Queen budged +4% to $6 million, while Argosy Belle bumped 6.5% to eke out $2 million.

“Our outlook on the consumer, generally, is really positive right now,” said MGM Resorts International CFO Jonathan Halkyard, addressing an investor conference. He predicts MGM’s convention business to recapture 90% of 2019 capacity this year and reach 100% and beyond in 2023. The group segment has been the laggard in an otherwise-broad Las Vegas recovery. “These groups, particularly the larger ones above 1,000 participants, book several years out. The groups we had that canceled in the first few weeks of January and February, some of them have rebooked later in the year. Some wanted to, but were unable, because we’re at capacity as we get into the high-demand period in September and October.”

So why, Halkyard was asked, is demand so strong in an inflationary climate for Strip room rates? “There’s an incredible desire to visit Las Vegas now and that has enabled us and others in Las Vegas to have that kind of price compression without resulting in reduced demand,” especially on weekend. In other business, MGM’s sale-and-leaseback of its real estate has created $3 billion in liquidity, some $2 billion of which will be invested in share repurchases. (This week the company also unveiled a 30-day escape clause from its Japan commitment.) “That still leaves a significant amount of investable capital for the company. Our priorities are going to be investing in projects that we think have an attractive rate of return and investing in our own stock, which we think at these levels present a very attractive value.”

As for BetMGM, the company is using to expand its loyalty program, automatically enrolling bettors in MGM Rewards, a cheaper way of acquiring customers than buying other companies. (*cough*DraftKings*cough*) As for i-gaming, “it is in the early days … What we are seeing is those customers who are playing with us are spending quite a lot more than just those who play with us in one channel. There’s clearly been dramatic growth in the i-gaming side. I think it’s a little early for us to determine what that impact has been, but it’s clearly been additive so far.” In other words, so far so good.

The Atlanta Falcons stink and there’s a new reason to root against them. Wideout Calvin Ridley has been suspended for the 2022-3 season for betting on NFL games in 2021. Ridley’s defense? “I bet 1500 total I don’t have a gambling problem.” That the amount was relatively small fails to reassure us and, yes, Ridley does have a problem: He broke a clear-cut league rule. Falcons management was in the dark and no games were tanked as a result of the wagering but the PR damage has been done. As league commissioner Roger Goodell put it in an open letter to Ridley, “Your actions put the integrity of the game at risk, threatened to damage public confidence in professional football, and potentially undermined the reputations of your fellow players throughout the NFL.”

Ridley’s future looks bleak but is he an outlier? Mike Florio doesn’t think so. He writes that it’s naive to think that Ridley is the only rogue player. “He’s simply the first one to be caught … Already, we’re hearing scattered rumors about other high-profile players who may be gambling on games, too. It definitely becomes a key part of the homework that teams must do when considering the acquisition of a given player, via free agency, trade, or draft.” Florio raises the dreaded specter of congressional intervention, which Goodell surely fears. All it will take is for one player or coach to be caught betting on their own games and the hearings will be gaveled into session.

Jottings: Online sports betting, approved in Illinois, went live last weekend, just in time for the debut of BetMGM. Perhaps this will offset MGM’s late arrival in the market … OSB is now live in Arkansas, courtesy of Southland Casino Racing. The racino went with obscure Betly to power its OSB offerings, mainly due to a previous, parimutuel relationship … Citizens of Vietnam may have more choice in terms of which casino(s) they may patronize. The Ministry of Finance has proposed adding two more casinos to the one-casino pilot program, which would be extended through 2024. The Ho Tram Strip would remain off-limits … The Pamunkey Tribe‘s Norfolk casino has a name—Headwaters Resort & Casino—but not a location for its temporary facility. It has to be in the “footprint where the casino will be located.” A nearby boxing ring might qualify but there is substantial opposition to the idea … Yet another OSB provider is calling it quits. United Kingdom-based MansionBet is shuttering its operations to focus on i-gaming.