Although recent investor presentations by the major casino and game-making companies would leave one feeling pretty sanguine about the economy, “pallid” is the word for the industry’s performance in Illinois last month. Attendance at casinos rose 21% but spending was flat. Most of that increase was attributable to Rivers Casino ($35 million, right), which lifted the state’s take 21%. However, with Rivers subtracted from the picture, revenues were 8% down. MGM Resorts International‘s Grand Victoria got pummeled again, -17%, showing the kind of double-digit volatility one associates with a much lower-grossing property, not one that won $20 million lat month.
Penn National Gaming‘s portfolio took it in the shorts, posting declines at Hollywood Aurora (-14.5%), Empress Joliet (-9%) and Alton Belle (-9%). A huge month for Harrah’s Metropolis (+14%) all but negated continued erosion in the Joliet market, salvaging the month for Caesars Entertainment. Independents Casino Queen (+3%) and Jumer’s Casino Rock Island (+9%) showed enduring strength and continuing improvement, respectively, while Boyd Gaming managed to exceed Deutsche Bank‘s expectations despite a 2% dip aboard Par-A-Dice. Illinois’ casinos may be hindered by a smoking ban and prohibitive tax rates that would discourage reinvestment, but new product like Jumer’s and Rivers casinos is a cinch to beat those odds.
Across the river, casinos in Iowa continue to improve as a group — up 3% even after new Grand Falls Casino is discounted. Both slot handle (+1%) and table revenues (+7%) rose, even against slightly lower table drop. Caesars had particular cause to break out the bubbly, since Harrah’s Council Bluffs (below) was 0.0% from last year. Being absolutely flat may not sound like such a great deal but Harrah’s CB had been riding a losing streak of at least 26 consecutive months’ duration. Management is to be congratulated on finally getting its act together. Throw in a boffo month (+13%, for a state-topping $20 million) at and Caesars really has reason to celebrate.
As a group, Isle of Capri Casinos‘ vessels did badly, averaging a 2% declivity. Newish Isle Casino & Hotel at Waterloo was the lone bright spot, up 3%. Ameristar Council Bluffs was feeling no pain, up 3% and beating Deutsche Bank projections (as did Caesars). Penn also had a solid month aboard Argosy Sioux City, up 4%. New kid on the block Grand Falls grossed $5.3 million, numbers comparable to Argosy Sioux City, validating state regulators’ decision to expand there and only there.
This just in: Deutsche Bank’s Carlo Santarelli is lowering short-term cash-flow estimates for Wynn Resorts. Neither casino play nor room revenues in Las Vegas have met previous assumptions. Legal expenses for the Kazuo Okada imbroglio are also a negative factor. Weak 1Q12 hold in VIP play at Wynn Macau didn’t help, either, but cash-flow estimates for 2012-13 look good along the China front, even with Sands Cotai Central looming in the not-so-distance.
