Stevens would like a few mulligans at The D, where he “opened a new sports bar, high-limit slots and keno. We did that before the shutdown. That wasn’t optimal.” However, the cannibalization of a showroom for a sports book expansion, which looked ill-timed for a while, is now “really amazing. The handle is far in excess of what we figured for our Year 2 projection.” Finally, Stevens has some interesting analysis of the Vegas recovery, in which he firmly believes, but thinks will entail some delay and some reinvention of the customer base. Sure, leisure travelers will be back, but also non-office, white-collar workers: “They’re independent, but instead of working in their house or apartment, they’re taking trips and working remotely. These are the two groups leading Vegas back.” As for conventioneers, they’re “going to take a little longer to return.” But he senses that Vegas tourists are itching for new product, which bodes well for both Downtown (Circa) and the Strip (Resorts World Las Vegas). We’ll know the clarity of his crystal ball come Oct. 28.
“Historical horse racing” was dealt a setback in Kentucky, where the state Supreme Court ruled against many of the Class II currently in use, primarily those provided by Exacta Systems. The high court held that HHR machines—in which the players vie for the same pool of winnings—”requires that patrons generate the pools based on wagering on the same discrete, finite events.” In other words, you can’t bet on races A, B and C at your machine whilst I bet on X, Y and Z. Not if we’re competing against one another, which HHR must do. “While we are disappointed with the Court’s decision, we do appreciate the clarity that the Court has provided as it pertains to HHR in Kentucky,” said Exacta President Jeremy Stein, “After several years of litigation, we now have certainty on how [horseracing machine] systems must operate in the state.” Stein hasn’t been wasting those years. He announced that Exacta had new, court-compliant machines ready to deploy. Are operators indemnified against the enforced, unplanned replacement cycle?
JP Morgan analyst Daniel Politzer says such concerns are “overblown” as they would relate to Churchill Downs and would buy CHDN after its shares dipped 10%. The company “plans to continue operating its existing HRM facilities, and does not anticipate any changes as it relates to the October 2nd opening of its Newport Gaming facility, phase II of Oak Grove opening in October … or continuing construction on Turfway Park (set to open 4Q21).” Why? Because Churchill Downs uses HRM machines from International Game Technology, Scientific Games and Ainsworth that comply with Kentucky law, unlike those at Kentucky Downs, Ellis Park, and Keeneland/Red Mile. Gov. Andy Beshear‘s reaction to the court ruling was that the Bluegrass State would need to “find a way forward” (HRMs are big tax sources) and Politzer “would not be surprised” if the Lege soon changed the law governing the parimutuel devices.
Badly in need of some good PR, The Cosmopolitan of Las Vegas has donated $250,000 to its own Diversity & Inclusion program and to local charities. Reports KTNV-TV, “The funds will be allocated in the coming months across new CoStar (employee) diversity training resources, monetary donations to nonprofit organizations, and a sizable commitment to the Hannah Brown Community Development Corporation Scholarship Fund.” Despite the financial impact of the Great Shutdown, the Cosmo hopes to match its nonprofit largesse of the past two years, nearly $2 million apiece.
Jottings: No more Cuban cigars for you. Blame it on the White House—or thank it for the new excuse to patronize Caesars Windsor, home of the real Cuban stogie … Word is that bungling Colony Capital is going to shed all of its hotels. That’s good news for the hospitality industry, as Colony never saw a hotel it couldn’t ruin … Our family got its mail-in ballots yesterday. USPS, don’t fail us now!
