It’s been leaked to the Boston Globe that a deal is at hand that would resolve the impasse currently holding casino-enabling legislation at bay. While still probably not to Gov. Deval Patrick‘s liking (he wants one racino, the compromise bill would have two), it indicates that the state Senate has prevailed over the lower house. The nitty-gritty is that three resort casinos would be permitted (good news for Las Vegas Sands and Wynn Resorts), while horse tracks would have to vie for a pair of licenses.
This last provision removes the seamy prospect of tracks like Suffolk Downs (above) getting “juiced” for slots while resorts operators grapple for finite licenses. The governor would like to see non-racing venues allowed to bid on the slot-parlor gig but, considering the concessions made by both sides (particularly by House Speaker Robert DeLeo), it’d be churlish and short-sighted to reject a bill such as the one that has (allegedly) been hammered out. Massachusetts really can’t afford to dawdle much longer, as the value of a casino license continues to decline.
A J.P. Morgan analysis of the compromise bill sees relief for the “stubbornly low” slot-manufacturing group (i.e., IGT, Bally Gaming and WMS Industries), with 45% of market share going to IGT, Bally and WMS splitting another 40%, leaving a smallish niche for everybody else. If projections of 1,500 racino slots and 9,000 resort-based ones, this is some much-needed wind beneath manufacturers’ wings.
Depending on whether you see the glass as half-full or half-empty there was still something for everybody in Melco Crown International‘s 2Q10 earnings report. Cash flow of $43 million at City of Dreams (left) was 28% below expectations and $309 million in revenue was 6% less than anticipated. Given the heated (overheated?) performance of Macao‘s casinos this year, any shortfall at City of Dreams is doubly disappointing, especially from a company that did better than expected in table-game hold, mass-market hold, slot handle and rolling chip volume.
The good news came from Altira, where cash flow was 35% higher than expected, coming in at $37 million. Overall revenues also saved Melco’s bacon (so did strong play at its Mocha Clubs) as Altira grossed $231 million, 15% above expectations. This company continues to be a puzzle, perhaps even to itself.
Freudian slip? Former Nevada Gaming Commission Chairman Brian Sandoval, currently running for governor of Nevada, appears to have committed truth in loose chat with Univision staffers. “But even saying his kids would not be profiled under the Arizona law because of how they look is a very careless thing to say,” writes Jon Ralston, particularly as it ratifies the views of those who equate Arizona’s immigration policy with Latino-bashing … which is why Nevada business interests want no part of it. Mexican license plates are showing up more and more often in Vegas casino garages. Anything that could incite a Vegas boycott (especially by conventioneers) or chill Hispanic visitation is something greatly to be feared in these precarious times.
