Dan Gilbert

Normality in Ohio, disaster in Illinois; Planet Ho sale mooted

Maybe the ‘skinny stimulus’ helped Ohio. Gross gaming revenues of $153.5 million were only 8.5% off last year’s pace. The gambling houses are still operating at 50% capacity and under a curfew but the number remains impressive. Hollywood Toledo continues to benefit from the closures in Detroit (recently lifted), up 14.5% to $18 million. Hollywood Columbus declined 12%, also to $18 million. As for Penn National Gaming‘s two racinos, Hollywood Mahoning Valley grossed $12 million, minus 3% and Hollywood Dayton, up 6.5%, also pocketed $11 million. Belterra Park showed signs of stabilization, down 9% to $6.5 million. Scioto Downs had a good month, down only 1% for $15.5 million. MGM Northfield Park was in a three-way tie for first place, grossing $18 million (a 21.5% tumble). Jack Cleveland, now with 100% less Dan Gilbert, was down 10% to $16.5 million whilst Jack Thistledown gained 13% to $13 million. Hard Rock Cincinnati continues to struggle, plunging 34% to $12.5 million. That only leaves Miami Valley Gaming, down 12% to $14 million.

An extra weekend day may have helped Ohio but it didn’t do squat for Illinois, where gambling revenues fell a catastrophic 74%. How come? Casinos were closed half the month, had to shut down nightly at 11 p.m. and were restricted to 25% of capacity. Whatever pent-up demand existed wasn’t sufficient to even partly compensate. Gross gaming revenues were a pitiful $26 million. Heck, Rivers Casino Des Plaines does that and more in a good month. In this case, Rivers towered over the market with $9 million (-77%) with nobody else coming close. In terms of retaining pre-Covid market share, Boyd Gaming‘s Par-A-Dice did best, off 46% to $2.5 million. Jumer’s Casino Rock Island continues to look like a terrible investment for Bally Corp., eking out $1 million (-72%). It did incrementally worse than DraftKings at Casino Queen, just over $1 million and -82%.

Icahn saves Trump Dump; Disaster in Pennsylvania

Carl Icahn‘s abusive-codependent attachment to Trump Plaza knows no ends. In his latest gambit, the magnate has kiboshed the implosion of the ramshackle ex-casino that had been slated for sometime in February, by dint of obtaining a cease-and-desist order. Instead, dismantling of the crumbling relic will continue at a stately pace, with plans for the site still unknown. At least Icahn, who has repeatedly embarrassed Atlantic City, showed some grace this time. He short-circuited Mayor Marty Small‘s auction of the demolition rights by matching the leading bid—$175,000—and donating it to the Boys & Girls Clubs of Atlantic City. Our sincere thanks for that, Uncle Carl. “From the beginning, we thought the auction and any other related spectacle presented a safety risk, and we were always clear we did not want to participate in any way,” said an Icahn mouthpiece. Opined The Press of Atlantic City, “We hope this happy ending opens the way for redevelopment of the Plaza site for the benefit of all.” We hope so too.

Half-a-loaf Cuomo; Ohio implosion

Gov. Andrew Cuomo (D); Copyright: Shutterstock

Cuomo giveth, Cuomo taketh away. After dropping hints of expansive sports betting in New York State, Gov. Andrew Cuomo (D) unveiled a proposal that was considerably less than ‘george.’ There will be one ‘skin’ and it will be answerable to the state lottery. Only the four, struggling, upstate casinos will be eligible to participate and the tax rate may be as high as 50%. The only silver lining for the industry is that the winner of the license competition will be the only game in town, enabling them to spend little or nothing or promotion. Due to its extensive ties within the Empire State, DraftKings has to be considered the early favorite. The state’s three tribal casinos are on the outside looking in and that’s bound to be a source of contention. Explaining his parsimony, Cuomo said, “I’m not here to make the casinos a lot of money. I’m here to raise funds for the state,” to the tune of $500 million in tax receipts a year.

End of the honeymoon; Virgin Hotel clings to virginity

Gaming revenue dropped last month in Maryland and precipitously so in Ohio, where the good times had really been rolling. Maryland’s $130.5 million gross represented a 7.5% dip, motivating JP Morgan analyst Joseph Greff to write that “We note the sequential year-over-year deceleration reflects the resurgence of new COVID-19 cases in recent weeks. We expect a similar trend to play out in other regions, which points to a retrenchment relative to 3Q revenues/EBITDA results.” (Two fewer weekend days didn’t help either.) MGM National Harbor was immune to the trend, up 2.5% at $55 million, with high-tax slots off 8% up low-tax table games hopping 18%. MGM’s accountants won’t complain. It held 42.5% of market share, comfortably above Maryland Live‘s 34.5%. The latter plunged 15% (to $45 million) and Horseshoe Baltimore 17% (a meager $15 million). Hollywood Perryville had a good month, up 1.5% to $6 million, while Ocean Downs declined 6% to $5 million and Rocky Gap had a 14% setback, to $4 million.

Over in West Virginia, revenues toppled 28%, with slots and tables falling almost equally. Hollywood Casino at Charles Town Races did only slightly better than the average, tumbling 27% with tables down 39% and slots 26% off the pace. When Maryland catches a cold, West Virginia gets pneumonia.

Gaming slows across Midwest … except in Ohio

Caesars Entertainment CEO Tom Reeg must have dropped some extra-potent LSD before his last investor call. His comments were summarized by one auditor as, “When we get into a Post-COVID world Pent-Up demand you’re going to see for Gaming And … Las Vegas in Particular Is going to be beyond your Wildest Dreams. Unlike anything that’s happened historically in this Space.” That not only puts Reeg not only out on a limb but in the thinly populated lunatic fringe of gaming executives and Wall Street analysts. It also conveniently allows Reeg to write off present-day reality as an aberration. For example, the drawdown of federal economic stimulus seems to be having a parallel effect on regional gaming. Not even two extra weekend days in October could produce impressive results.

True, there’s always Ohio, no doubt helped by the fact that Detroit casinos are still largely off-limits. The Buckeye State was up 7% to $169 million. MGM Northfield Park and Hollywood Columbus vied for the top spot with $20 million each. But MGM doesn’t have table games so we give it the ‘win.’ Hollywood Columbus was up 10.5% while MGM slipped 5%. Hollywood Toledo continues to outperform, with $18.5 million and a 16% gain. Jack Cleveland won $19 million for a 12% upsurge and Hard Rock Cincinnati kept its footing, up 1.5% to $17 million. Jack Thistledown grossed $14 million, up 16.5%, while Scioto Downs did $17 million (+11%) and Miami Valley Gaming won $14.5 million (+2%). Belterra Park was flat at $7 million, while Hollywood Dayton leapt 13.5% to $11 million and Hollywood Mahoning Valley slipped 2% to $11 million.

Ohio still strong; Internet saps brick-and-mortar casinos

Buckeye State casino revenues continue to trend upward, gaining 6% to finish at $164.5 million in win. Now that casinos are open in Detroit, it took some of the sheen off Hollywood Toledo, but not much. It was up 13.5% to $19 million. Hollywood Columbus, up 4%, nipped past it to $19 million. Both were eclipsed by MGM Northfield Park‘s return to the top spot, rising 3% to $20 million. Jack Cleveland rose 5% to $18 million while Hard Rock Cincinnati slipped 3% to $15.5 million. Next to MGM, the best of the racinos was Scioto Downs, up 8% to $16 million. Jack Thistledown (pictured) vaulted 21% to $14 million, while Miami Valley Gaming was right behind it, up 1%. Hollywood Mahoning Valley‘s $11 million represented a 3% increase while Hollywood Dayton ascended 13.5% to almost $11 million. Belterra Park brought up the rear with $7 million, a 2% dip.

Ohio strong, Maryland stable, Illinois stinks

Buckeye State casinos continued their impressive run last month, up 5% to gross $172 million. This is Ohio‘s best-ever August, even with an unfavorable calendar (one less weekend day). Star performer was Hollywood Toledo, up 33% to $23 million. MGM Northfield Park has lost its state-leading status, grossing $19 million and down 7%. Also grossing $19 million was Hollywood Columbus (flat with 2019). JP Morgan analyst Joseph Greff had projected both Penn National Gaming casinos to perform poorly this year, down 25%. Instead, Toledo is tracking to be 65% up and Columbus (above) to cede only 2.5%. Jack Cleveland was up only 1.5% but that was good for $18 million, while Jack Thistledown jumped 15.5% to $14 million and Hard Rock Cincinnati was flat at $17 million.

Holy Toledo!; Sigma Derby needs you

Ohio casinos didn’t just outperform the Midwest during July, they had their best month ever. What gives? Well, Detroit was still off-limits (redounding to the considerable benefit of Hollywood Toledo) and discretionary capital was clearly plentiful. The four non-racinos hadn’t even come close to this number since March 2013. “What’s remarkable about these figures is that they were reached when all four casino resorts were dealing with the effects of Covid-19, returning from state-mandated lockdowns with fewer customers, fewer machines and almost no amenities,” reports David Ross. Hollywood Toledo’s $33 million obliterated the previous apogee, a $26 million month for Jack Cleveland. Said Ohio Casino Control Commission spokeswoman Jessica Franks, “July was a weird case scenario and Toledo was very much an outlier.” And a very profitable one, Franks speculates.

Indiana, Missouri, Ohio rebound, Illinois not so much

It was back to business as almost normal in Indiana last month. The Hoosier State was only 5.5% 0ff its July 2019 pace, grossing $171 million. (They’ve been open since June 15.) The relative novelty of table games—$5 million—at Indiana Grand and Hoosier Downs didn’t hurt. Nor did an extra weekend day. A rising tide did not lift all riverboats. For instance, Blue Chip (pictured) slid 30.5% to $9 million. Top performer by far was Horseshoe Hammond ($30 million), down 7.5%. The biggest recovery—27%—was at Ameristar East Chicago, which brought in $21 million. The two Majestic Star boats did quite respectably: $7 million (-11%) at Majestic Star I and $4.5 million (-6.5%) at Majestic Star II. Down at French Lick Resort, receipts were $5.5 million, a 34% tumble.

In the southern tier, Indiana Grand led with $23 million, up 6.5%. Caesars Southern Illinois followed with $18 million, off only 2.5%. Belterra Resort slipped 15% to $8.5 million, Tropicana Evansville was down 13% to $11 million, Rising Star‘s $4 million was a 7% slippage while Hoosier Downs grossed almost $18 million, just 2.5% off the pace. Hoosier sports betting was at its best since March, with $71 million in handle. That’s despite only eight days of major-league sports. Had their been a full month of play, books would easily have met or exceeded the expected $90 million. Revenue came in just under $7 million. DraftKings (Ameristar) led online wagering with $33 million, followed by FanDuel (Blue Chip) with $24 million and everybody else very far behind.

Ohio, Indiana slammed; Station is ‘george’

Loss of half a month in Ohio meant a 61% plunge in casino/racino revenues, to $72 million. Although there were two fewer weekend days in the month that was as nothing compared to Coronavirus. (The calendar is neutral this month, if casinos can salvage any of it.) Declines were pretty uniform so there’s no point in dwelling on them: Hollywood Toleldo $7 million (-61%), Hollywood Columbus $8.5 million (-61%), Jack Cleveland $7.5 million (-62%), Hard Rock Cincinnati $7 million (-64%), MGM Northfield Park $9.5 million (-61%), Scioto Downs $7 million (-60%), Jack Thistledown $5.5 million (-57%), Miami Valley Gaming $6.5 million (-62%), Belterra Park $3 million (-61%), Hollywood Dayton $4 million (-61%) and Hollywood Mahoning Valley $5 million (-59.5%). Better luck this month.

Matters were, no surprise, almost as bad in Indiana, where casinos closed March 16, prompting a

Stitt catches a break; Station, Gaughan step up to the plate

Did the government of Oklahoma screw up the exclusivity agreement that gave it power over tribal gambling? That’s the contention of a new legal brief from the Wichita and Affiliated Tribes, who say that the recent expansion of lottery offerings dilutes tribal exclusivity. And if so? No need for a compact and all tribal gaming revenue stays home. The tribes are even going after the state for damages. The state has yet to formulate a response but continues to argue in court that the 4%-10% tax rate paid by tribes was a “below-market” reflection of the “infancy” of the Sooner State’s casino industry and, now that it’s one of the nation’s three biggest, more revenue-sharing is required.

Said Wichita Tribe President Terri Parton, “Even if the Lottery Commission didn’t expand its online operations, this new form of electronic gaming not only violates the

Explosive month in Indiana, elsewhere

Hoosier State casinos were raking it in hand over fist last month, as casino receipts shot 14.5% upward. The $192 million gross included $7 million from still-novel table games at Indiana Grand and Hoosier Downs. Yes, there was an extra weekend day but that hardly explains the boom. It’s certainly taken JP Morgan analyst Joseph Greff by surprise, as he reports double-digit increases at properties he had forecast would be flat. Caesars Entertainment dominated the state, whether in terms of dollars—$37 million (+19%) at Horseshoe Hammond—or percentage increase, as in 51.5% at new Caesars Southern Indiana, grossing $21 million. The two Caesars racinos raked in $25 million (Indiana Grand) and $18 million (Hoosier Downs), increases of 17% and 21% respectively. Also flexing some muscle was Belterra Resort, jumping 36% to $9 million, while Tropicana Evansville made 12% more for Eldorado Resorts, banking $13.5 million.

Elsewhere in the southern tier, Rising Sun slipped 8% to $3.5 million, Hollywood Lawrenceburg nudged up

Boom in the Rust Belt

Boom in the Rust Belt

You’d be forgiven if you did a double take upon seeing the latest casino-revenue numbers out of the Midwest. Business is up—to sometimes-unprecedented degrees. Take Ohio, for instance. It’s always a casino-friendly state … but a 19% upsurge in revenue? In January, no less? Well, I suppose people have to go somewhere when it’s cold outside but the amount of discretionary dollars they have to spend is pretty impressive, especially when you consider that the out-of-season racinos did 20.5% better this year. Not even an extra weekend day (and there will be another in February) comes close to explaining it.

The overall gross was $167.5 million. MGM Northfield Park held onto the top spot with $23 million (no table games, remember), a 17%

Coronavirus hits Vegas; Connecticut’s massive screwup

This just in … It’s here! The Southern Nevada Health District has reported a possible case of coronavirus. More details as we get them. In the meantime, there are at least six confirmed cases in Macao, as gaming stocks suffer and the outbreak’s devastating effect on casino revenue strengthens President Xi Jinping‘s case for Macanese economic diversification.

MGM Resorts International has received the nod to be an “official gaming partner” of the Las Vegas Raiders. You have to be an early riser to beat MGM when it comes to inking sponsorship pacts with sporting leagues and teams. MGM will be hosting “official” pre-game and post-game parties, so it had been brace itself for some wild and woolly venting of steam, especially if the Malosos lose. Raider Nation has to be the rowdiest

Churchill Downs, Eldorado power Illinois; Atlantic City upgraded

Santa Claus was generous to Illinois casinos. Despite ever-increasing competition and an unfavorable calendar (one less weekend day) their receipts rose 5.5% last month. The gross was $124 million, with most of that ($94 million) coming from the state’s northern tier. Last year December was flat, despite nine weekend days, which makes this year’s performance even more impressive. Driving the increase among the northerly casinos were Rivers Casino Des Plaines and Grand Victoria in Elgin. At the former, Churchill Downs saw a 17.5% revenue spike to a market-leading $45 million. The latter, Eldorado Resorts-owned riverboat grew 10% to $14 million.

Those made up for a lot of unimpressive performances elsewhere. Empress Joliet slid 7% to $9.5 million, Hollywood Aurora was off 3% to $10 million and Harrah’s Joliet was down 2.5% to $15 million (still better than

What gives, Indiana?; Galaxy ousted from Philippines

Despite the excellent November performance of surrounding Midwest states, Indiana casinos were up only 1% last month. Factor in an extra weekend day this year and that’s a pretty underwhelming result. In its last

full month of service, riverboat Glory of Rome brought in $17 million for Caesars Southern Indiana, down 9%. Caesars Entertainment‘s two racinos fared better, with Hoosier Park grossing $16 million, up 3%, and Indiana Downs up 6% to $20.5 million. Hollywood Lawrenceburg was up 1.5% to $14.5 million while Tropicana Evansville rose 6% to $12.5 million. Boyd Gaming and Full House Resorts didn’t fare so well. Belterra Resort ceded 5% to $8 million and Rising Star sank 14% to $3.5 million. French Lick Resort grossed $8 million for a 2% gain.

In the Hoosier State’s northern tier, Horseshoe Hammond was dominant, up 8% to a hefty $32 million. Next best was

A swing through the Rust Belt

What does Ohio‘s economy have that other Rust Belt states do not? We’d really like to know, since Ohio consistently outperforms its brethren when it comes to gaming revenue. Last month, casino win was up 5.5% to $158.5 million. Racinos (up 8%) drove most of the gain. Only Hollywood Toledo blew it, down 1.5% to $16 million. The biggest gainer was Hollywood Dayton, leaping 14% to $10 million. Just a tenth of a percent behind was Jack Thistledown, grossing $12 million. Hollywood Mahoning Valley also impressed, jumping 10.5% to $11 million. In sheer dollar volume, MGM Northfield Park‘s $21 million (up 2%) led the state, while Hollywood Columbus was a distant second with $18.5 million (also up 2%).

Both of the “Jack”-branded casinos grossed $17 million, with Cleveland gaining 5% and

Cordish bully on Philly

Cordish bully on Philly

We’ll soon find out if the Philadelphia market can sustain five casinos when Cordish Gaming‘s Live! Casino & Hotel Philadelphia opens, next door to Citizens Bank Park (baseball) and close to Lincoln Financial Field
(football) and Wells Fargo Center (basketball and hockey). Mind you, such a location was thought to be gangbusters for Horseshoe Baltimore and it didn’t pan out. At least being cheek by jowl with 81 baseball games should be good for something. Reports Global Gaming Business, “This is the heart of South Philadelphia’s Stadium District, which is typically mobbed with people, particularly on game day for one (or often two) of the city’s professional sports teams. To many observers, it’s the best site for a casino resort in the crowded Philadelphia region. Cordish officials feel it may be among the best sites in the country.”

Said Cordish Gaming CEO Joseph Weinberg, rather inelegantly, “We have I-76, which dumps

Massachusetts: No more casinos; Gilbert sells again

Citing an obvious saturation (already) in the Massachusetts market and the possibility of a tribal casino in Taunton or on Martha’s Vineyard, the Massachusetts Gaming Commission punted the award of the state’s final casino license into the indefinite future. In the words of the Boston Globe, “regulators were in no rush to add more variables to the equation.” As Commissioner Enrique Zuniga put it, “I currently feel no sense of urgency. We have not seen the levels that the applicants themselves predicted, because they did predict certain revenues from year one, and they’re not currently seeing those revenues.” The MGC may authorize a

MGM beats Maryland malaise

Maryland officially hit the saturation point last month, as revenues dipped 1%. MGM National Harbor ($58 million) wasn’t hurting, up 6%—with slots and table games gaining equally—and with 40.5% market share. Maryland Live ($48 million) was second with 33.5% but it came at a price: a 5% decline in gaming revenue. Horseshoe Baltimore ($18.5 million) fell 1o%, Hollywood Perryville ($6 million) ceded 5% while Churchill Downs managed to eke out a flat month—and $7.5 million—at Ocean Downs. That left Rocky Gap out in the burbs, where Golden Entertainment gained 3% for $5 million. In West Virginia, gaming revenue was

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