Wynn’s Arabian nights; White Paper no whitewash

Resisting the temptation to call it Aladdin 2.0, executives at Wynn Resorts unveiled designs of their United Arab Emirates casino resort, Wynn Al Marjan Island. Noting that its’ the company’s first oceanfront resort, Wynn is quick to assure us that the casino is 1,000 feet above sea level, presumably safe from the depredations of global warming. The company is specific about the budget ($3.9 billion) but vague regarding what the finished product will offer. “The project will pave the way for the accelerated growth of allied business sectors,” we are promised. What the company is prepared to say is that there will be 1,500 guest rooms and suites, 24 unspecified eateries, and oh yes, “a gaming area.”

There will be at least one spa, a retail “esplanade,” a convention center, plus a theater boasting “a unique production show” (hopefully not the troubled one currently on hiatus at Wynncore). If that weren’t enough, nightly laser and light shows are on bill. Wynn doesn’t come out and say it, but the resort is targeted mainly to expatriates and tourists, although we figure that decadent petrocrats will find their way to it when it opens in early 2027. Architecturally, we are told that the podium level is mean to evoke “a great opera house” and that “Every diner in the abundant restaurant offerings lining the beach-facing promenade at Wynn Al Marjan Island will enjoy sweeping views of the sea.” And to think the only sweeping views we’d enjoyed of anything named “Marjan” were Natacha Karam‘s Islamic hottie on 9-1-1 Lone Star.

Proclaimed Wynn CEO Craig Billings, “We have spent the past year meticulously programming and concepting [sic] Wynn Al Marjan Island, carefully considering its unique location. I am incredibly proud of our design and development team’s ability to impart our legacy of rich, thoughtful design into a sun-soaked beachside resort that will delight customers, new and old.” He could have said “rich or poor” but let’s face it, if you have to ask how much it costs to visit Wynn Al Marjan, you can’t afford it.

What if they gave an earnings release and almost nobody came? That’s what happened to Churchill Downs yesterday. So far, among the usual Wall Street suspects, only Barry Jonas of Truist Securities has weighed in. Mind you, the news was good. CHDN beat Street estimates of cash flow by as much as 6%, driven largely by success in casinos and historical-horse-racing machines (what you and we call “slots”). Jonas wrote that “on the face of it we’re incrementally positive and see CHDN off and running to nearly doubling its EBITDA over the next 3-4 years to $1.4 billion.” He reiterated a “Buy” rating on the pricey ($252/share) stock. Cash flow last quarter was $223 million, off $560 million in net revenue. The online TwinSpires unit may have only contributed $29 million but that was 9% more than forecast. We’ll hear from the rest of the gang tomorrow, after Churchill Downs has held its earnings call.

After 2.5 years and three prime ministers, the Tory government of the United Kingdom has finally released its long-awaited, much-hyped White Paper on gambling. If problem-gambling advocates were afraid it would be toothless, they need not have worried. The document recommends capping online wagers at 15 GBP (or even less), as well as a new tax to underwrite research upon and treatment of disordered gamblers. Affordability background checks on customers would also be increased under the regime. “A flutter is one thing, unchecked addiction is another; so today we are bringing our pre-smartphone regulations into the present day with a gambling White Paper for the digital age,” said Lucy Frazer, the latest of umpteen ministers through whose policy portfolio the document has passed.

In addition to a new tax of unspecified rate (who said only liberals enjoy increasing taxes?), the gambling regimen proposed by 10 Downing Street would empower regulators to put unlicensed operators and illegal wagering sites out of business. In addition, bonus offers, free wagers, etc., would be curbed. The changes are driven by the exponentially increased use (and profitability) of online gambling. Surprisingly, both Entain and Flutter claim they’re on board with the White Paper, pending study of its details. Land-based casino operators have to like it too, as it eases regulations and permits greater slot inventory, which is ridiculously restricted at present. In its usual no-hurries manner, the government said the changes wouldn’t be in place for another 15 months, prompting the Labour Party to say they should be legislated promptly.

Predictably, not everyone was happy with the report. Christian Action Research & Education fumed about the Tories’ go-slow approach: “After years of disappointment relating to this white paper it is galling to learn of more dither and delay from the government.” Even right-wing MP Sir Iain Duncan Smith was critical of the government, saying, “I welcome this because this is at least a start, I think it’s a positive start. On advertising and children, I simply want to say—not far enough.” Yet another Tory, Philip Davies, says the White Paper would crimp individual liberties far too much (“Do the punters themselves get any say at all over how they can afford to spend their own hard-earned money?”). Gambling with Lives wrote us to opine, “it needs to go much further to reduce gambling suicides without lengthy delays … [we] had called for an end to all gambling advertising, affordability checks at £100 monthly losses, and an end to free bets and other inducements, which were not included in this white paper.” In Frazer’s defense, if you’re displeasing everybody you’re probably doing your job.

It looks at though Bally’s Corp.‘s temporary Chicago casino won’t make its June 30 opening date. Part of the problem is a leisurely regulatory schedule, with only one meeting scheduled between now and then—and that one conclave slated for today. This is not good news for Chicago, whose outgoing Mayor Lori Lightfoot (D) foolishly staked the health of the civic pension funds on casino lucre. The Illinois Gaming Board probably won’t approve the Medinah Temple casino before June 15, making for a desperate scramble to get the doors open in time for July 4 … and Bally’s Chairman Soo Kim could certainly commiserate with Full House Resorts CEO Dan Lee about the misery of casino openings in Illinois. Last-minute regulatory approval marred the debut of The Temporary at American Place and an encore performance by Bally’s seems almost certain at the moment.

Jottings: Caesars Entertainment got the go-ahead from the Virginia Lottery to open its temporary casino in Danville. Don’t get too excited: It’s a long, freakin’ shed. Slots in a shoebox, starting May 15. The real product won’t be presentable until an unspecified time … Las Vegas Sands has inked a 99-year lease on the Nassau Coliseum, proposed site of Sands Nassau. The lease is presumably contingent upon Sands receiving a lucrative casino concession from New York State Gov. Kathy Hochul (D) … There’s a dark underside to the casino recovery in Macao: Suspicious-transaction reports are up 44% from this time last year. We’re glad to see operators being so vigilant but it implies that the currency-flight problem hasn’t been curbed … Online casinos are dead in the New Hampshire Lege, following a 20-0 committee vote to kill the bill, much to the chagrin of DraftKings. Said one GOP solon, “We can revisit this in the future but we shouldn’t jump into the deep end of the pool on big gaming at this point.”

Quote of the Day: “These games threaten the legal industry economically, but they also pose a threat to gaming policies in their respective states, challenging the basic principles of licensure, most notably, that central policy that a gaming license is a revocable privilege granted to those who affirmatively demonstrate their good character, honesty and integrity.”—Spectrum Gaming Group Managing Director Michael Pollock on the epidemic of black-market slot routes.