Goodbye, Trump Plaza; Vaccine news boosts Big Gaming

Also getting an appreciative nod is Station Casinos, expected to benefit from migration to Las Vegas from California and the ability to “more than offset near-term challenges related to softer visitation to the LV Strip.” Admittedly, Greff urged caution on Vegas-centric operators (which Station certainly is) “given the uncertain outlook for convention/group business due to COVID-19 concerns. With recent positive vaccine developments, we could envision getting more bullish on Las Vegas if/when it seems convention/group bookings are beginning to pick up and/or stick (as opposed to conventions simply getting pushed out 3 – 6 months), along with mid-week occupancy trends (many properties are closed mid-week).” As far as Las Vegas locals play, Greff prefers Boyd and Station, “given the region’s strong economy, which is underpinned by population growth and less dependent on the health of the LV Strip (vs. 12 – 15 years ago, when the correlation was fairly high).” He cited housing prices, which continue to creep upward, and a preponderance of job creation outside of the hospitality industry. Limited/restricted gaming supply doesn’t hurt the market dynamics, either.

On the regional front, the analyst predicted that Covid-motivated cost cuts will be sustainable, and that both sports betting and i-gaming will continue to be a boon. “Near term, however, will likely be choppy given the potential for mandated casino closures/restrictions, but we believe the favorable backdrop remains in place for regional gaming revenues to continue along their recovery trajectory in 2021.”

Jobs may soon be scarce at Harrah’s Louisiana Downs and Horseshoe Bossier City. 1,200 employees have been warned (or WARN Act-ed) that their jobs are at risk. No such peril for the workforce at Caesars New Orleans, which Caesars Entertainment has pledged to maintain at full strength. The pledge comes as the hotel-casino seeks a second hotel tower, destined for high rollers, along with additional entertainment venues. $225 million has been earmarked for the new-look casino, which is enjoying a 58% tax cut, saving as much as $2 million a year. We do think the property could do without the planned, new portico which looks like the progeny of Jay Sarno and not in a good way.

“We want them infected,” wrote White House advisor Paul Alexander, urging the subjection of the U.S. population to ‘herd immunity.’ “Infants, kids, teens, young people, young adults, middle aged with no conditions etc. have zero to little risk….so we use them to develop herd … [I]t may be that it will be best if we open up and flood the zone and let the kids and young folk get infected,” read his e-mail, which urged keeping colleges open: The more students infected, the better. “So the bottom line is if it is more infectiouness [sic] now, the issue is who cares? If it is causing more cases in young, my word is who cares…as long as we make sensible decisions, and protect the elderely [sic] and nursing homes, we must go on with life….who cares if we test more and get more positive tests.” Monstrous.

Jottings: As of 5 p.m. yesterday, MGM National Harbor halted indoor food and beverage service until Jan. 16 (at minimum). Also, the parking garage is off-limits on weekends unless you’re an MLife member. “And ‘outdoor dining, will be expanded, so you can (today) experience the snow fall on your food,” says our source … Not to worry, gourmets: Joel Robuchon‘s eponymous restaurants will return but not until the pandemic abates. Rushing in where angels fear to tread, Guy Fieri looks to open a junk-food restaurant at Las Vegas North Premium Outlets, date unspecified … Massachusetts Speaker of the House Robert DeLeo (D) is rumored to be contemplating retirement. If he goes, he’ll be remembered in part as the father of legalized gambling in the Bay State … Phil Ruffin is reinvesting in Circus Circus. Exhibit A: NebulaZ, a new thrill ride in Adventuredome. “The thrill ride consists of eight gondolas that can hold four riders, up to 32 guests per cycle, and reach speeds of 14 rotations per minute,” reports KTNV-TV … Iowa sports-betting handle reached $87 million last month. If the number seems anemic, it’s because Gov. Kim Reynolds (R) will not allow online registration until Jan. 1.