Boyd, Churchill Downs garner raves; Indiana governor seduced

Boyd Gaming got a good review on Wall Street today, lauded both for slightly surpassing revenue expectations and for moving quickly to deleverage in the wake of the Valley Forge, Belterra and Ameristar acquisitions. Downtown continues to be Boyd’s bastion of strength, 8% above expectations, while corporate expenses were 2% less than modeled. “Management highlighted that performance at Gold Coast has been solid and share gains made last year during construction of competing properties (i.e., Palms and Palace [Station]), have largely maintained,” wrote JP Morgan analyst Joseph Greff. Continued dominance of the Hawaii trade and a long-term comeback in Downtown also aided Boyd. The company’s five new casinos and Lattner Entertainment slot routes in Illinois contributed $213 million in revenue and that was during a period of severe weather, so there’s no telling how they’ll perform when the sun shines.

Greff’s sidekick, Daniel Politzer, reviewed Churchill Downs‘ first quarter and reported that historical racing at Derby City “is ramping nicely and should see further upside as 100 add’l machines come on line next month and new titles/manufacturers are added.” Wall Street hopes for good weather for the Kentucky Derby (as do the horsemen, I assume), especially with Japanese thoroughbred Master Fencer sparking interest among bettors. Fair Grounds in New Orleans and Ocean Downs in Maryland helped drive a much-better-than-expected racino haul. With the addition of Miami Valley Gaming, CHDN has its bases covered on both sides of the Ohio River.

* Getting a jump on completion of Circa, magnate Derek Stevens is opening a Circa-branded sports book at the Golden Gate. While it doesn’t look large, it is handsome and doesn’t bespeak improvisation. We’ll never forget when South Point wanted to add a poker room that wasn’t in the casino design and ended up putting it under a stairwell, a sorry afterthought.

Stevens has lured sports book director Matt Metcalf away from the Westgate Las Vegas book (no small achievement), who will hold down the fort while Circa’s massive, multi-tier, stadium-style book is built.  “Circa Sports will take people back to old-school Las Vegas hospitality, where our guests and oddsmakers interact closely in a friendly and fun environment,” promises Stevens. The Golden Gate book will have 18 TV screens and two betting windows. It’s located near valet parking, for even greater convenience. And, in keeping with the times, mobile wagering will be part of the offerings.

* A warm S&G thank-you goes out to Jeopardy winner and Las Vegas gambler James Holzhauer, who surprised the Las Vegas Natural History Museum with a $10,000 gift. “We think the museum is an amazing resource for the Las Vegas community and we can’t wait to see how our donation helps it move forward,” Holzhauer said. Added his wife Melissa, “We enjoy bringing our child to the museum and seeing her face light up when she sees the animal exhibits (oh those chicks last week!). I also appreciate that every time we visit, there is something new to do or see. It is not a very big place but it has a lot of charm.” The Holzhauers have done their part. Your turn, Big Gaming.

* Now that the rubber is hitting the road in states that have approved sports betting, politicians are discovering that reality is somewhat grimmer than blue-sky projections of tax revenue. This is the case in Rhode Island, West Virginia, Mississippi and Pennsylvania. Sports-Betting bills have faltered in Kentucky and Maryland. Still, Montana appears to be on the verge of legalization, as does Iowa—although Gov. Kim Reynolds may be swayed otherwise by adverse public-opinion polls. Two states that you’d think would be pay dirt—California and Florida—are stymied by tribal opposition. The tribes don’t want card rooms to have it in California and nobody seems to have the stomach for renegotiating tribal compacts to accommodate sports wagering.

* Casino expansion in the Indiana Lege was so convoluted that sponsor Rep. Todd Huston (R) wound up voting against his own bill. The final product was a bill that inhibits competition by lifting the ownership cap from two casinos to six casinos and racings. It also advances the date when racinos can have table games (undoing one of Mike Pence‘s accomplishments) and is generally a big-ass gift to Caesars Entertainment, which never saw an oligopoly it didn’t like. Also standing to benefit are two Spectacle Entertainment moguls, who couldn’t buy Pence when they were running Centaur Gaming but found Gov. Eric Holcomb (R, pictured) more tractable, especially to letting himself be ferried around on corporate jets. “If they haven’t stepped over the line with this they’ve gotten awfully darn close,” said Common Cause Indiana Policy Director Julia Vaughn.

In the final legislation, Spectacle gets to move its Majestic Star I license to a better location in Gary, while it surrenders its second license, which goes up for bid in Terre Haute (not that Spectacle couldn’t win the auction). Spectacle will still be taxed as if owns two riverboats but will be able to consolidate the gaming positions from both vessels into its new, onshore location. In another win for Spectacle, its fee for relocation will be slashed from $100 million to $20 million, a deal that Rep. Ben Smaltz (R) said “is going to come back and haunt us in the future.” Hammond, East Chicago, Michigan City and the French Lick resort all get tax rebates to make up for the new competition in Gary and Terre Haute.

Terrestrial and mobile sports betting were also legalized. The bill passed both houses of the Lege by comfortable margins. Holcomb could still veto them but, due to his closeness to Spectacle, that appears unlikely. What’s that again about lawmaking and sausage presses?