Bluhm, Boyd win in Illinois, everyone else loses

Well, not quite but the headline pretty much gives you January’s narrative in a nutshell. After backing out the contribution made by Neil Bluhm‘s new, category-killing Rivers Casino in Des Plaines, gambling revenue from the Land of Lincoln was a feeble $96 million last month, for a same-store comparison of -11%. The most damning statistic is that more people were visiting casinos last month (admissions rose 17%) but per-visitor spend remains flat. Illinois Gov. Pat Quinn‘s office should run off copies of Carlo Santarelli‘s sobering revenue breakdown and beat every pro-expansion legislator soundly over the noggin with it. If gamblers continue to spend less, leaving casinos to fight over a stagnant pool of money, all large-scale casino/racino/slot-route expansion is going to accomplish will be to spread the existing misery.

And I do mean misery: Caesars Entertainment‘s take was down 11%, Penn National Gaming‘s fell 19%, as did MGM Resorts International‘s. Rivers Casino is absolutely sucking out the Chicagoland market, its $30 million leaving everyone else eating Bluhm’s dust. MGM’s Grand Victoria Elgin, Hollywood Aurora (-24%), Empress Joliet (-19%) and Harrah’s Joliet (-12%) are all getting their butts kicked, no two ways about it. And that’s what just one new casino can do to the region. Imagine a few more casinos (including one in downtown Chicago) and five racinos, and it gets too ugly to contemplate. There were a few non-Bluhm bright spots: Boyd Gaming‘s Par-A-Dice was up 2%, indie Casino Queen, in East St. Louis, continues to recover (+13%) and Jumer’s Casino Rock Island continues to post positive comparisons, month in and month out. But perhaps Penn should consider finding a new home for the Alton Belle ($5.5 million), whose performance is a shadow of its old self.

One positive comparison that can be made today is Unite-Here‘s new contract at the Golden Nugget Atlantic City. Despite recent setbacks in Atlantic City, union boss Robert McDevitt managed to wring small salary increases out of new owner Tilman Fertitta, and held the line on health and benefit costs. McDevitt’s not having so much luck at the Tropicana Atlantic City, where Carl Icahn‘s regime — in the person of Anthony Rodio — continues its trench warfare. The largest bone of contention is right out of the Columbia Sussex graveyard: management’s threat to unilaterally opt out of the union’s pension plan in favor of a company 401(k) or direct cash payments to employees … the sort of thing that can be rescinded at a moment’s notice. (ColSux tried to ram this past the Culinary Union in Las Vegas, and failed miserably.) In better times, Unite-Here would probably hit the picket lines. But these are lean years, so McDevitt will take his grievances to the National Labor Relations Board instead and maintain a fragile peace with Trop management.

Today was supposed to be the launch date of the new Caesars IPO but they couldn’t even get that right. You get the feeling these IPOs are jinxed? If this one gets off the launching pad, Paulson & Co. is expected to follow with a big liquidation sale of its Caesars stock. Low-priced stock in a company that’s carrying $22.5 billion in debt. Gee, what’s not to like? Meanwhile, online partner 888 Holdings continues to thrive — money that tantalizingly out of Gary Loveman‘s reach and which represents the only lifeline strong enough to getting him out of the hole into which he’s dug Caesars.

In our nation’s capitol, hopes for Internet gambling continue to dangle by a thread. No, I don’t mean the phantom of nationwide legalization that the American Gaming Association continues to chase ’round Capitol Hill. The District of Columbia‘s fledgling iGaming program may experience political crib death, thanks to having been smuggled through the approval process and having its contract awarded overseas, allegedly without competing bids being heard. (Shady dealing and cronyism in D.C.? Perish the thought!) Considering that Councilman Michael A. Brown‘s sole public ally on behalf of the Intralot deal is sleazy colleague Marion Barry, the district’s desire to “throw the baby out with the bathwater” is understandable and would err on the side of probity.

Update: Baby and bathwater are officially out, by a 10-2 vote.