Las Vegas Sands

Sports bets a hit in Virginia; Vegas recovery an iffy prospect

Online sports betting was quick out of the gate in Virginia—$59 million in handle in 11 days—although books spent so much money acquiring customers that they took a loss on the month. “Debuting ahead of the NFL’s conference championship games and the Super Bowl ensured there would be heavy interest from bettors. In addition, launching with top-flight sportsbook operators in place to serve a market with years of pent-up demand is a recipe for success,” diagnosed PlayUSA analyst Jessica Welman. Although Tennessee, with a full month of wagering, notched $134 million in handle, the neighboring state recorded less wagering per day than did Virginia. As for the monetary loss, analyst Dustin Gouker observed, “We saw the very same dynamic play out in the first days of Michigan’s online market, as well. The bottom line is that Virginia’s market is off to a good start, with significant interest from bettors across the state. That will certainly pay off for the state in coming months.”

While per-operator numbers are not available, first-mover status (Jan. 21) undoubtedly redounded to the benefit of FanDuel. It was followed into the market on Jan. 24 by BetMGM and DraftKings, then BetRivers on Jan. 26. William Hill didn’t arrive upon the scene until February, although it won’t be the last into the pool. Since enabling legislation for sports betting in Maryland is still tied up in the Lege, Virginia has every opportunity to make hay whilst the sun shines.

Mixed signals from Vegas; It’s all good in Atlantic City

Is the new year bringing a Las Vegas comeback? If you set store by anecdotal evidence, things look relatively normal on Fremont Street. God knows Downtown could use a dose of normality, especially after a December devoutly to be forgotten. For those, like us, who are waiting upon empirical evidence, the good news is that there is some, albeit hailing from the Las Vegas Strip. Room rates for March 14-20 are 49% off last year’s pace, averaging $134/night. Whilst this may not be indicative of “surging” demand, there are some positive omens. Whoever decided to close Palazzo midweek was a genius. Las Vegas Sands‘ room rates are shooting up 47% on weekdays and 19% on weekends, when competition is stiffer. The Venetian is carrying the market at this point. Frankly, everyone else’s midweek rates stink. Convention-reliant MGM Resorts International can perhaps be excused for being down 57% (reopening three hotels will make that price point harder to defend) but how to explain Caesars Entertainment‘s -67% and Wynncore‘s -68% At least MGM and Wynn Resorts are rebounding on weekends, down 25% and 28% respectively. Caesars is in the weekend tank, off 46%. Perhaps management is trying to recoup traffic by deep discounting but that’s the best spin we can put on it.

MGM revisited; Mixed month for Indiana

Today it was Credit Suisse analyst Ben Chaiken‘s turn to weigh in on MGM Resorts International‘s 4Q20 numbers and he found even more to like than did Joseph Greff yesterday. Leading with Macao, Chaiken saw MGM China capturing more of mass-market play “which presents a powerful high margin earnings story should there be a mass recovery story in ’22, as is our expectation.” The only damper on that prospect is the stream of big-ticket resort openings from Sands China, Sociedade de Jogos de Macau and Galaxy Entertainment, which could shake things up further. Chaiken also predicted that Wynn Resorts would pivot to mass-market players, presumably because VIP action has been thin on the ground. Like us, Chaiken was keen on the performance of MGM’s regional U.S. casinos, which have boasted “a faster than expected rebound” from pandemic constraints. Although he arguably buried the lead, the analyst was also impressed by BetMGM‘s performance in both i-gaming and sports betting, “outperforming expectations … driven by efficient customer acquisition and better than expected share.”

BetMGM saves company’s bacon; Whither the Palms?

Seesawing between the effects of closures and capacity restrictions, Detroit casinos were down 28% last month. They grossed $87 million, led by MGM Grand Detroit with $34 million (-32%). Breathing down MGM’s neck is MotorCity‘s $33 million haul (-21%), while Greektown lagged with $19.5 million (-20.5%). Walk-up sports betting was a smash, with $4 million in revenue realized in just nine days on $36 million in handle. The numbers for online wagering and i-gaming aren’t in yet but they should be impressive. So, all things being equal, it could have been much worse.

Elsewhere in the MGM Resorts International empire, 4Q20 numbers were reported by Deutsche Bank analyst Carlo Santarelli and they send one reeling. Las Vegas was a black hole of nothingness, plunging 66.5% ($480 million), while regional operations were better—if one defines “better” by being 34% off 2019’s pace. At least they brought in more money: $595.5 million. MGM China was nothing to write home about, being down 58% and winning $305 million. The disparity between Las Vegas and the rest of the U.S. was more pronounced in terms of net revenue, $53 million vs. $158.5 million, leading one to wonder if MGM reopened its Las Vegas Strip fleet too much and too soon. (More on that theme later.) Bad as these results were, JP Morgan analyst Joseph Greff had actually expected them to be worse, calling the numbers “unsurprising.”

Why so sanguine? OSB and Internet gambling were “objectively impressive” with BetMGM forecast to capture 15% of American OSB share and 20% of i-gaming action. (He wasn’t so chill about the Strip, lowering his cash-flow projections.) The good online news inspired Greff to boost his MGM price target from $32/share to $37. MGM leadership thinks business will not return to 2019 levels for a couple of years, projecting that it will be 90% of prior-year levels by late 2022. Greff is a bit more optimistic than that. Strip occupancy fell from 89% to 38%, thanks of course to nonexistent convention business, table-game wagering was 41% less (though the house won more often) and “properties are still being negatively impacted by capacity constraints, lack of demand/airlift, etc.”

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%.

Wynn surprises few; Maryland stabilizes, Iowa impresses

It’s earnings-report time for Wynn Resorts and JP Morgan analyst, Joseph Greff, for one, is feeling blasé about the numbers. “Overall, we’d characterize the quarter as in line with investors’ recent expectations, and its earnings conference call outlook commentary as appropriately hinged on a resumption of travel that is predicated on a decline of COVID-19 infection rates and an acceleration of vaccination rates,” he wrote. Luckily for Wynn, its preferred Macao sector (premium mass-market) is outperforming the mass-market and VIP ones. While Sands China saw a 61% plunge in table-game wagering, Wynn had a victory of sorts by being down only 51%. Wagering volumes in Las Vegas were described as “impressive,” thanks to weekend play and California drive-in business. 4Q20 table game and slot handle were 72% and 85% of comparable 2019 levels, which bodes well for recovery. Still, Greff thought cash flow would be “stuck” at recent levels until Coronavirus vaccines are more widely promulgated.

The Morgan analyst shaved five bucks off his target price for WYNN, to $119/share, but encouraged buying on any downticks in the stock. Early-2021 cash flow projections were more optimistic for Wynncore (-4%) than Macao (-27%), but rosiest of all for Encore Boston Harbor, given a 16% boost. Internet gaming is slow to obtain traction, posting a $38 million negative return on investment. Looking over the horizon, Greff sees Wynncore gaining 5% more cash flow, bringing it to 93% of 2019 levels. Macao is dicier, only 83% of 2019 levels, led by slot play. VIP win is predicted to be 36% of 2019. At least Wynn Palace appears to have turned the corner, dwarfing Wynn Macau in EBITDA. Cash flow from all sources was $70 million for 4Q20, with Macao contributing $39.5 million and Vegas $21 million (on $173 million in revenue). Those numbers were above expectations and, going forward, “3Q/4Q events are hanging in (at least for now).” Whew.

Hawaiians avoid Las Vegas

Pent-up demand, huh? Not in Hawaii, according to KHON-TV in Honolulu. It reveals that Hawaiian Vacations had been planning to resume charter flights to Sin City (Boyd Gaming‘s bread and butter) in December but called it off due to a lack of traction with customers. “We just didn’t have enough people comfortable and ready to book to send 767 aircrafts, 218-passenger planes to Vegas,” said Sales & Promotions Director Kevin Kaneshiro. The company has retrenched and is now planning a June 1 relaunch. Reports KHON, “The plan is to have three flights a week with departures on Sundays, Tuesdays, and Fridays. With considerably more people getting vaccinated and some restrictions likely to be lifted, Kaneshiro says people will be ready for a true vacation.” That includes air, hotel and meals all in one value-oriented package. “[I]t’s pretty much everything except the baggage handling,” Kaneshiro explains. Customers will be put up at the California Hotel or Fremont Hotel.

As for Main Street Station, no reopening has been announced and we don’t expect one before summer. Boyd is using its in the meantime as a Covid-19 testing facility, so that travelers returning to the 50th state don’t have to go through 10-day quarantines upon arrival home. According to Hawaiian Vacations, whatever uptick in demand exists is coming from the younger clientele, with senior citizens understandably fighting shy until they’ve had their shots. We expect Las Vegas to be back in a big way at some point but if Las Vegas Sands CEO Rob Goldstein says it won’t be until next year we’re prepared to take him at his word.

Bailout for Tilman; Casinos to the Big Apple; Mega-Jottings

It was a $6.6 billion rescue package that Golden Nugget CEO Tilman Fertitta received, in the form of a merger with FAST Acquisition. Fertitta’s been hard up for cash and forks over a portion of his casino empire in return for some badly needed liquidity. The deal gives FAST “voting control and ownership by the Company of approximately 31 million shares, or nearly half of all outstanding shares in Golden Nugget Online Gaming (NASDAQ:GNOG) … Mr. Fertitta will also be the company’s largest shareholder, with an approximately 60 percent interest in the company and stock valued upon the closing of the transaction in excess of $2 billion dollars.” The Nuggets will also be getting a $1.4 billion infusion of public equity capital. FAST stock hopped 20% on the news. The Bubba Gump’s, Chart House, Del Frisco’s, Mastro’s and Morton’s restaurant chains are also included in the deal, for which some feel gaming was an afterthought. However, the Nuggets have been outperforming the rest of the casino industry in recent stages of the pandemic. Public investors, take heart: 4% of the company will still be put up for sale.

A casino in Times Square? It could happen. L&L Holding Co. has pitched the idea of a $2.5 billion megaresort at 1568 Broadway, part of a larger, mixed-use development (hotel, retail, concert hall, all that jazz). Not having gaming experience, L&L is looking for a joint-venture partner (Las Vegas Sands, take heed). This isn’t the only casino being proposed for Manhattan: a Herald Square one has been floated by Vornado Realty Trust. Both developers seem to be banking on economic and political pressure to accelerate the 2023 deadline for opening New York City to full-fledged casinos. At present, L&L is proceeding, in part, with EB-5 loans from foreign investors, a business model with which Las Vegas is well acquainted.

Case Bets

More than 23 million Americans are expected to bet legally or otherwise on the Super Bowl, according to the American Gaming Association, which predicts $4.3 billion in handle. 7.5 million punters will be doing their wagering online, 63% more than last year. The action leans heavily (56%) toward the Kansas City Chiefs—sorry, GOAT—with 12 million citizens betting against friends, as opposed to 1.5 million using retail sports bookies, down 61% from last year, before Covid-19 struck. Action with Lefty in the back alley will be patronized by nearly two million Americans, down 21%, a sign of progress. Speaking of progress, the AGA says, “34 percent of Americans remember seeing responsible gaming messaging in the past year, up five points from 2020. Super Bowl bettors were even more likely to see responsibility content, with 53 percent seeing responsible gaming messaging in the past year.” As AGA prexy Bill Miller puts it, “Responsible gaming is core to legal sports betting’s long-term success, and this is borne out by continued demand for consumer protections only available in the legal market.”

More Illinois sports betting data is out, with $41 million in revenue realized on $449 million in November handle. Surprisingly, the #1 revenue spot was not held by DraftKings Casino Queen but “DFS Operator #2,” otherwise known as FanDuel, with $14.5 million. DraftKings was second with $12.5 million, followed by BetRivers‘ $11.5 million, while PointsBet made the board with $2 million. For handle, DraftKings led market share with 37%, then BetRivers’ 29.5%, followed by FanDuel’s 25% and PointsBet’s 6%, way down from its October 14%.

Las Vegas recovery: A definite maybe; Woe at Sands

First, the bad news. Las Vegas emerged from a December that was just plain awful, as discretionary income continues to dry up. Las Vegas Strip win plummeted 51% to $292 million. Statewide, gambling revenue toppled 35.5% for $684 million, an even poorer showing than we expected. The closest thing to a bright spot was the play of Las Vegas locals, who left ‘only’ 17% less year/year in the slots and on the tables. Heck, it would have been worse had November not ended on a weekend, thereby carrying some late-month income into December when the slots were tallied. This occurred at the same time that various amen corners are saying the future’s so bright we’re going to need sunglasses. Perhaps so, but the December numbers give us an idea of how far we have to go to get back to ‘normal.’

Looser hold didn’t help Strip casinos, whose slot winnings fell 55% on 43% less coin-in. Table-game win ($141 million) fell 46% on 44% less wagering. It’s worse than it looks because the Strip had a relatively good month at baccarat, winning 16% less despite 50% lower play. Not even Circa could save Downtown, off 28% to $45.5 million, whilst North Las Vegas slipped 34% to $19 million. The Boulder Strip stumbled 24.5% to $62 million, Laughlin dipped 19.5% to $26.5 million and miscellaneous Clark County was down 6% to $100.5 million. Utahns came to the rescue of Mesquite, flat at $11 million. Upstate, things looked slightly better. Reno slid 16% to $44 million and volatile Lake Tahoe was relatively mild, down 14% to $15.5 million. Wendover was off 10% to $16 million. Maybe that last-minute Trump administration economic-diversification won’t be so bad for Wendover Will after all. And with that we draw the curtain on a year that Nevadans would heartily prefer to forget.

Life after Adelson; Super Bowl odds revealed

Taking a business-as-usual approach, Las Vegas Sands reported 4Q20 earnings and JP Morgan analyst Joseph Greff wasn’t blown away, writing that “we, like most investors, see the quarter and any outlook commentary offering little in the way of positive developments for Macau … given recent COVID-19 infection spikes in China and ensuing tightened control over tourist visa issuance for mainlanders to visit Macau.” Given the rampant nature of Coronavirus, Greff foresees but a “modest” boost from Chinese New Year. Mass-market tables and slots were down 64% year/year and VIP win fell 76%. Still, that’s a big improvement from 3Q20, when business was negligible. Greff pegs 3Q21 as the time Macao will come back. He recommended buying Macao-centric stocks, citing Melco Resorts & Entertainment, as well as “fatigue” about the pace of Macao’s comeback and that they are “under-owned in general.”

Adelson rolling in grave; Police blotter

It’s a good thing Sheldon Adelson didn’t live to see this. The First Circuit Court of Appeals quashed a 2019 reinterpretation of the Federal Wire Act by the Justice Department, one that broadly applied it to Internet gambling. The federal court agreed with a New Hampshire one that the Office of Legal Counsel had erred and that the Wire Act only applies to interstate sports betting. The case had been brought by the New Hampshire Lottery “We find the plaintiffs’ claims are justiciable and that the Wire Act applies only to interstate wire communication related to sports events or contests,” sayeth the court. Unless the Joseph Biden administration pursues this to the Supreme Court (highly unlikely), Eric Holder‘s narrow, 2011 interpretation of the Act will stand. In other words, the First Circuit has driven a stake through the heart of the anti-Internet-gaming movement, or what’s left of it.

Were Adelson still around and the First Circuit had upheld the 2019 revision, he wound have found himself in an awkward position. Earlier this week, ace reporter James Rutherford revealed that Las Vegas Sands “was in discussions with potential partners to enter the sports betting business, a move that would take the company down the internet gambling path which Adelson so vehemently opposed.” That would make Adelson even more of a pious fraud than he already was on the Internet issue. It’s a disservice to Sands shareholders that the company has missed the online-sports-betting boat, although it’s in no position to capitalize i-gaming, not after having quit Pennsylvania.

Chilly in Atlantic City, deep freeze in Detroit; Siegfried, R.I.P.

Casino revenues in Atlantic City plunged 29% last month. “Results for the month reflect the negative impact of higher new COVID-19 cases in recent weeks, capacity limits and restrictions on F&B offerings, similar to other regional markets,” writes JP Morgan analyst Joseph Greff. The gross was $147 million, with slot revenues plummeting 34.5% and tables down 17%. As we’ll get to momentarily, there was some compensatory news on the cyber front, with i-gaming revenues shooting 102% higher than last year and sports betting skyrocketing 126%. As PlayUSA analyst Dustin Gouker put it, “The pandemic has had a diametrically opposite effect on New Jersey’s online and retail markets for both sports betting and casino games. But the growth of online betting was crucial in making up for at least some of the losses in revenue at Atlantic City casinos and certainly continue to steady the entire gaming industry.” But on to the brick-and-mortar stuff …

Borgata fell 28% $39.5 million as slots were down 31% and tables 28%. The Caesars Entertainment trio collapsed 41% on 46% less slot win, and tables were down 23%. Bally Corp. had a rough first month at its new, eponymous casino, spiraling 45% downward to $7 million. Caesars Atlantic City slipped 23% to $14 million, Harrah’s Resort was a calamitous -53% for $12 million and Tropicana Atlantic City dove 42% to $13.5 million. Only Hard Rock Atlantic City was revenue-positive, up 2% to $26 million. Ocean Resort stumbled 9% to $19 million, Resorts Atlantic City plummeted 42% to $7 million and Golden Nugget slid 43% to $8 million.

Tribute to a bad man

Sheldon Adelson, 1933-2021

Sheldon Adelson‘s Horatio Alger success story came to an abrupt end today, when the Boston Globe broke the news of his death from lymphoma at age 87. Adelson had a good run in the industry, longer than most, and his career—despite a costly money-laundering scandal—was never tripped up the kind of ethical failings that brought contemporaries Steve Wynn and J. Terrence Lanni low. He outlasted all his major competitors on the Strip and successfully steered Las Vegas Sands through two recessions, among myriad other accomplishments. But his reign in Las Vegas as the doge of Venelazzo was not without taint, local, national and international. We’ll get to that in a minute.

Reactions to Adelson’s passing were quick to roll in. The American Gaming Association, with which he had been sometimes at odds, issued the following statement from President Bill Miller, which read in part, “I had the pleasure of knowing Mr. Adelson for more than 15 years, long before joining the American Gaming Association … It is his leadership and generosity that stand out the most to me. There’s no greater example of this than serving his community and prioritizing his employees’ well-being during the last year as our country and industry grappled with the global pandemic … may his memory be a blessing.”

Twilight of the God

Sheldon Adelson hasn’t left the building at Las Vegas Sands but the exit door has opened. Moments ago the company announced that the 87-year-old plutocrat would be taking a leave of absence for treatment of lymphoma. Adelson has been battling the disease since March 2019. COO Rob Goldstein ascends to the post of acting chairman/CEO. Goldstein knows the industry like the back of his hand and Sands isn’t expected to miss a step. As JP Morgan analyst Joseph Greff puts it, “Mr. Goldstein, 65, has been at LVS for ~25 years in a number of executive positions and is universally respected–and liked–by investors, casino operator peers, employees and, importantly, the Adelson family, which owns a majority/controlling stake in LVS.” Yes, Sheldon, like his pal Donald Trump, values personal loyalty above all else (keeping then-President William Weidner on even after, according to Adelson’s sworn testimony, he breached his fiduciary duties). Goldstein also adds the duties of acting chairman/CEO of Sands China to his portfolio, meaning his desk will be very full for some time to come. We wish Adelson a speedy recovery, as do the many politicians whose careers depend on his largesse.

Adelson, Packer canoodle & other news

While America burns, Sheldon Adelson is fiddling in the French Caribbean, aboard his mega-luxury yacht. The vessel was moored next to that of James Packer, who welcomed Adelson as guest for his lavish New Year’s Eve celebration. This meeting of the moguls only served to further fuel speculation that Sheldon is cutting a deal with Crown Resorts to buy Venelazzo. If so, it would be the first astute business move Packer has made in the United States, where his previous atttempts to crack the market—especially in Las Vegas—were a shambles, placing bets on every three-legged horse in sight. Of course, Packer would have to get Nevada regulators to overlook that little matter of being unable to get a Sydney casino license …

Remember how casinos in Japan were supposed to be open in time for the 2020 Olympic Games? And how the games were postponed until this year? And how there is still no opening date for the casinos, if ever? Well, the Olympiad is already $7.2 billion over budget and hasn’t been held yet. This exceeds the record, $6 billion overage of the 2012 London games, proving that Olympic incompetence is nothing new. (By percentage, the worst excess was 1992 Barcelona‘s 266% overrun.) Not only is the Japanese government quibbling with the International Olympic Committee over who should pick up the $2 billion of the tab related to Coronavirus postponement, the Nipponese public is getting restive: 34% of survey respondents favor outright cancellation, while another 36.5% want additional delay. 75% think Coronavirus is not going to be tamed anytime in the immediate future. The only recent Olympiad to come in remotely close to budget was Athens in 2004, which goes to show you can’t beat the ancestral home of the games.

Circa debut boosts Downtown; Lots of moving, shaking predicted for ’21

Although casinos across the nation have been swooning in November, results in Nevada—which we feared would take it worse than average—were in line with national trends, a victory of sorts. Statewide, gaming win fell 18% and the Las Vegas Strip, which has been the epicenter of the problem, tumbled 32% but frankly we expected a lot worse. Locals came out to play, too, and win from them was up 6%. Since October ended on a Saturday (a non-reporting day), a weekend’s worth of previous-month revenue helped fatten the November results, offsetting one less weekend last month. December is not likely to be such a positive story, casino-capacity restrictions having been tightened to 25% on Nov. 24.

As far as Strip casinos were concerned, baccarat continued to be a black hole, with players wagering less (-25%) and winning more, are revenues toppled 45%. Other table games fell 32% on 35% less wagering. Strip slots slid 29% (to $197 million) on 33.5% less coin-in. Even tighter holds didn’t help. Overall, Strip casinos grossed $350 million. Downtown the story has to be Circa, whose first full month coincided with a 2% increase in gaming revenues ($53 million), Derek Stevens‘ rising tide lifting all boats. North Las Vegas was off 2% ($19 million) but the Boulder Strip was boffo, up 18% to $68.5 million, while the balance of Clark County was flat at $105 million. Laughlin missed the boat, flopping 19% to $33 million. Mesquite was off 8% to $11 million while Wendover slipped 17% to $15.5 million.

Mixed readings on Vegas recovery; Trump vs. Titus

How bad is it in Las Vegas? Well, the latest edict from MGM Resorts International is that The Mirage will be closed from Monday at noon to Thursday at noon, INCLUDING the casino. (We felt that news needed a bit of extra emphasis.) Even the volcano is shutting down. That’s dire. It’s also further confirmation of what we’ve been hearing for months, that Las Vegas’ recovery is wont to be sluggish. While 2022 seems a long time to wait for a comeback, it could be worse. Tourism to New York City is not expected to return to pre-pandemic levels until 2025. What tourists want now, asserts the Reno Gazette-Journal‘s Ed Komenda is “a place that’s clean and secluded and far from the perils of the pandemic.” That’s not Vegas, where Covid-19 levels are skyrocketing and Gov. Steve Sisolak (D) dithers over whether to re-close the casinos. (Will the Nevada Resort Association or Culinary Union allow it?)

Veteran reporter Howard Stutz points to a near-total absence of international travel. “That’s why Palazzo closed. They didn’t have international business. It’s a ghost town there.” He thinks midweek closures will be the order of the day. After all, Sin City is trying to maintain 2020 A.D. room inventory on 1993 levels of business. Stutz says recovery projections are “all over the place. If the vaccine works, if this pandemic starts going away and other parts of the economy start rebounding, then we’re going to start seeing more visitation maybe by summer.” Until then, he predicts a “terrible” November (think how bad it is elsewhere in the country and then magnify that) and worse December.

Goodbye, Trump Plaza; Vaccine news boosts Big Gaming

Atlantic City Mayor Marty Small (D) has found a nifty way to raise money for the Boys & Girls Club of Atlantic City: Auction off the right to push the button that implodes Trump Plaza on Jan. 29. Small hopes it will bring in big bucks, a million dollars or more. Hey, if we had it, we’d pay it. The top bidder gets the right to demolish the Boardwalk’s worst eyesore and end the Trump Era in Atlantic City once and for all. “Some of Atlantic City’s iconic moments happened there,” Small allowed, “but on his way out, Donald Trump openly mocked Atlantic City, saying he made a lot of money and then got out.” The dilapidated edifice has been periodically crumbling onto the thoroughfares below and implosion is in the nature of a mercy killing, Trump Dump having been closed for six years now. And when it was still open its revenues would barely fill a Dixie cup. A new use for its site has yet to be determined but Small is going to pitch owner Carl Icahn on some kind of family attraction.

The release of Covid-19 vaccines is boosting gaming stocks, according to JP Morgan analyst Joseph Greff, who says the gaming group is trading as much as 26% higher. “How 2020 started, evolved, and finished was manic and startling, with fundamentals and valuations settling on a more optimistic note at year-end, where our coverage universe is ending 2020 with broadly strong share price performance,” he writes, noting that Big Gaming is exponentially outperforming the S&P index. In Macao he sees a “gradual” recovery, redounding most to the benefit of Melco Resorts & Entertainment, Wynn Resorts and Sands China. For its “under appreciated” sports betting and regional gaming strength, Greff likes Boyd Gaming best, better even than Penn National Gaming.

In case you missed it …

Pennsylvania closed all its casinos Sunday, starting with Rivers Casino Pittsburgh at 12 a.m. The shutdown is to last until Jan 4. The Keystone State joins Michigan (until Dec. 20, probably longer) and Illinois (indefinite). In Nevada, although Covid-19 is setting records—and not in a good way—Gov. Steve Sisolak (D) continues to stay his hand. Massachusetts Gov. Charlie Baker (R) has so far exempted casinos from reimposed restrictions but a potential Jan. 1 statewide shutdown is looming.

Boyd Gaming continues to draw down its presence in the Vegas Valley. It has sold the Eldorado in downtown Henderson for an undisclosed amount. The new boss will be DeSimone Gaming. The latter already owns Railroad Pass and should be more likely than Boyd to reopen the property. The parting of the ways between Boyd and the Eldorado is a doleful one: It was the first casino in which the Boyd family invested, way back in 1962. It had opened the previous year as The Wheel. Owned wholly by the Boyds since 1966, the Eldorado’s sale marks the end of an era. With surplus inventory Downtown (Main Street Station) and on the Boulder Strip (Eastside Cannery), one wonders if further BYD divestitures will follow.

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