It’s a rare day when one can report that a casino market was down year/year but did better than expected. If you were looking for serious Deepwater Horizon spillover into June’s casino numbers, you’d be surprised. Statewide, casinos were -4.5% with Baton Rouge the hardest-hit market (-6%) and New Orleans (-2%) the least. That said, June was the weakest month of 2010 and the most anemic since November of last year, with a $185 million haul.
Amelia Belle actually posted a microscopic revenue increase whilst Pinnacle Entertainment‘s flagship L’Auberge du Lac sustained a mere 1% decline. For the first time this year, it outgrossed Harrah’s New Orleans (-5%, $25.5 million). Now that’s news.
Across Lake Charles, Isle of Capri Casinos‘ vessel is sinking fast, -39% and eking out $1.1 million in revenue, the smallest take in the state. Isle’s nearby Grand Palais ($9.8 million, -6%) must be effectively subsidizing the Lake Charles boat. Two racinos fared well, Harrah’s Lousiana Downs up 2.5% and Fair Grounds absolutely flat (yes, 0.0% deviation from 2009). Between a 13% decline at Delta Downs and a 9% falloff at Sam’s Town upstate, it was a rough month for Boyd Gaming. Thanks to its Horseshoe Casino & Hotel (-3%, $17.2 million) and Harrah’s N.O., HET had the “place” and “show” spots in the gross-revenue derby.
Squishy in the Midwest. In the course of lowering expectations for major regional casino operators (Boyd, Pinnacle, Ameristar Casinos), stock analyst Joseph Greff wrote, “we project soft regional gaming revenue results over the next 3-6 months as we do not expect to see a significant increase in consumer spending patterns given the uncertain economic environment,” including high unemployment. One stock Greff likes is Penn National Gaming, for which he projects better-than-expected results, thanks mostly to cost controls.
M sets pace for Wynn. Possessor of the best buffet in town, M Resort is ginning up some extra business with the offer to win free buffets for life. (Just what my waistline needs!) This lit a fire under Wynn Resorts, which quickly responded with a one-time giveaway of lifetime buffet passes to five Nevada residents. If you’re a red-card holder — like me — you have to be physically present for the July 29th drawing in the Encore Theatre (aka The House of Garth) to be eligible for complimentary line passes to Wynn’s buffet. It’s nice to see that Steve Wynn‘s team isn’t too high and mighty to adapt ideas from the competition.
Crazy from the heat. Shutting down the Strip, gay activists are blockading traffic at Las Vegas Boulevard and Tropicana Avenue today, in 106-degree weather, venting frustration with Sen. Harry Reid (D-NV). The standoff lasted at least 12 minutes, although Las Vegas Metro appears to have brokered some form of compromise. How cruelly ironic that this should be happening between three MGM Resorts International-owned properties. MGM was — along with Harrah’s Entertainment — one of two major casino companies that risked backlash to push for passage of domestic-partner recognition in this state.
