JP Morgan analyst Daniel Politzer met with top execs from Churchill Downs and found a company pretty satisfied with where it is now. It “has yet to see any cracks in fundamentals at its 
regional casino properties or among its customer base. Management is upbeat on the company’s growth trajectory and is confident it can continue running its casinos at an efficient pace; it views its casino portfolio as underappreciated given the pace of both revenue growth … and EBITDA growth.” Management was skeptical of the trend to split companies into REITs and operating companies. Churchill Downs likes owning its real estate.
As for mergers and acquisitions, “seller expectations remain high” and “a transaction would need to have a strategic component (and an attractive multiple).” CHDN just opened Derby City, near its titular race course, with 900 “historical racing” machines, though Derby City has the infrastructure to upscale to 1,100 VLTs. As for sports betting, Churchill Downs’ opinion has it “being in the very primitive stages and sees it taking time to reach level of sophistication/technology seen in the U.K./Europe.” No argument there.
* Although it risked getting lost in other news, Mohegan Gaming & Entertainment used Global Gaming Expo week to announce that it had extended its partnership with Live Nation to encompass Inspire, near Incheon International Airport, in South Korea. Said MGE CEO Mario Kontomerkos, his 
company “and Live Nation have been long-time partners in creating one of the most successful arena venues in the world for its size, the Mohegan Sun Arena in Uncasville, Connecticut. Now, we are partnering again to do the same, only this time it will be at the Inspire Super Arena at the Incheon International Airport, right in the heart of the burgeoning Northern Asia entertainment market.” The jury’s still out on whether a mega-budget casino can succeed on tourist-only business but MGE just wisely hedged its bet.
* The era of legal sports betting in New Mexico begins October 16 when Santa Ana Star Casino & Hotel begins taking wagers. It’s teaming with Las Vegas-based USBookmaking to run the sports book, where you can even bet on minor-league baseball if that’s your thing. “There will be action taken on the colleges, so the University of New Mexico, New Mexico State — those will be available to wager,” according to USB’s John Salerno.
State Rep. Moe Maestas (D) played down the economic significance of the change, saying, “It’s zero revenue boost to the 
state. Zero. The tribes do not have to give a dime to the state. It doesn’t affect the state coffers at all. It may help tourism.” Since sports betting was illegal until recently, New Mexico lawmakers never thought to put regulatory language into tribal contacts, creating a loophole through which Santa Ana could herd an army of bison. Still, Maestas was forgiving, saying, “I would rather that bettors bet with a local entity than with all these internet sites from the Bahamas. The key is allowing tribal entities to have exclusive rights to the New Mexico market.” Amen.
* Still going strong at 15 years of age, Borgata Hotel Casino & Spa was honored with a “Best Property” award at Global Gaming Expo. In accepting the award MGM Resorts International CEO Jim Murren developed selective amnesia with regard to Boyd Gaming‘s role in shepherding the property to completion and with running it on MGM’s behalf until relatively recently. “This award is a testament to Borgata’s world-class offerings and showcases MGM Resorts’ leadership in markets throughout the United States and around the world,” said Murren, giving himself a hearty pat on the back.
