At long last, Circa; Las Vegas Strip, empty city

The opening even got the attention of the South China Morning Post, which hailed “Michigan motor parts magnate” Stevens for raising the pool-party game and gave the cost of Circa as $1 billion. (Whew!) It described Stadium Swim as more outdoor sports bar than thumpa-thumpa Rehab wannabe. Yes, you can even place bets poolside. Stevens took an aw-shucks approach, describing his al fresco spectacle as “Kind of a like a great backyard, with a great pool scene, great food, sports on, and just a ton of fun.” Mind you, a lot of testing went into Circa’s design features, meaning we’re probably not in for a repeat of the Vdara Death Ray. As for Circa’s no-kids-allowed policy, UNLV‘s David Schwartz sees it as a plus: “Appealing to aspects of Las Vegas that many people love in a different way can be a formula for success.” The article mentions, in passing, that Stevens in buying into Vegas just when Sheldon Adelson is cashing out? He surely can’t afford to take on Venelazzo but we can dream, can’t we? It’ll probably go to some faceless, job-slashing private equity fund.

Bottom line: Derek Stevens is taking a gamble, swimming against the tide of a dreadful economy. But high curiosity about Circa—the first new Downtown casino in 40 years—could turn the trick for him and maybe rub off on the rest of Downtown (its operators certainly hope so). Having been subjugated by his charm we can’t help but root for him and wish Circa all the best of luck.

(Speaking of a rising tide lifting all boats, the advent of Circa is affecting Downtown table minimums: It’s $15 for craps and 21 at The D and Golden Gate, $10 for craps, $25 for 3/2 blackjack but only $1 for 6/5 blackjack at the Downtown Grand, $5 for craps and $10 for 3/2 blackjack at the Four Queens. The Fremont Hotel is asking $10 for craps and 3/2 blackjack, while the Golden Nugget gives you your choice of $10 craps, $25 3/2 blackjack and $5 6/5 blackjack.)

It’s no secret why Las Vegas Strip gambling revenue plummeted 39% in September. Not only were there no conventions but visitation was down 51%, 11% better than August but still pretty pallid. Hotel occupancy was a bleak 47% (66% on weekends but 29.5% midweek) with revenue per available room $54 (-59%). The one bright spot for operators were room rates that climbed 21% to $117/night. 16,000 rooms remain off line but if that’s a bid to artificially boost occupancy and RevPAR it’s not working out so great. Throw in those few baccarat players who thoroughly clocked the house and September will be a month to forget on the Strip.

Veteran Las Vegas impresario Troy Heard of Majestic Repertory Theatre wrote the following yesterday: “This will probably be an unpopular take: a vote for [Donald] Trump is a vote to destroy the live-event industry. The Trump administration has blatantly given up on trying to corral the Coronavirus pandemic in favor of ‘herd immunity.’ The fact of the matter is, we will not be gathering safely inside a venue in any significant *and fiscally beneficial* numbers unless there is a vaccine. Or, if we find a way to conduct efficient on-the-spot-testing of audiences with contact tracing and new safety measures. I know some of my performer friends are getting ready to return to the Strip, but it’s with major alterations to their shows, and with major pay cuts. [emphasis added] This will not be sustainable over the long haul, though. Plus, traditional ticket buyers aren’t even coming back here/are not allowed to travel here right now.”

Such is the insanity sweeping our country that it may be time for us to enter a Trappist monastery. A security guard in Chicago asked two sisters to put on PPE masks and sanitize their hands before entering the store. One of them picked up a trash can and hit the guard with it while the other pulled a switchblade and stabbed him 27 times. Miraculously, the guard not only survived the attack, he didn’t even require surgery. The two crazies are in custody, charged with attempted murder. Said the presiding judge, “It’s the complete randomness of this. It’s terrifying.” You can say that again.

Jottings: Gaming & Leisure Properties informed Wall Street analysts that it has received 18 expressions of interest in Tropicana Las Vegas, “though [it] acknowledges a number of these buyers are likely just kicking the tires,” wrote JP Morgan‘s Joseph Greff. In other GLPI news, rent from The Meadows racino is down but GLPI expects to make it up and more when Penn National Gaming‘s Morgantown satellite casino opens … PlayUSA.com predicts that Tennessee, which goes live with sports betting on Nov. 1, will become a $6 billion market. That’s the most optimistic projection we’ve heard. DraftKings, FanDuel and BetMGM are already in but revenue will be taxed at 20% and hold is statutorily set at 10%. On the other hand, the industry will be mobile-only. “It’s too much to say that Tennessee is the Wild West of markets, but it is far more open than we have seen,” said analyst Dustin Gouker, while colleague Jessica Welman cautioned that “only time will tell to see if its regulatory gambles, especially the hold requirement, will hold the market back.”