Casinos in Indiana kept pace with 2021 last month, grossing $196 million. No prizes for guessing who was tops—Hard Rock Northern Indiana with $35.5 million, a 14% leap from the previous November. Horseshoe Hammond fell 16% but hung in there impressively with $26 million, while Ameristar East Chicago slid 14% to $15 million. Michigan-facing Blue Chip dipped 7% to $10 million. Horseshoe Indianapolis performed by far the better of the state’s two racinos, banking $28 million on a 17% surge, far outpacing Harrah’s Hoosier Park‘s $18.5 million, a 7% fade. In the southern tier, tribal Caesars Southern Indiana was up 8% to $19.5 million, not having missed a step since changing hands. Bally’s Evansville climbed 11% to $14 million and French Lick Resort was up 5% to $6 million. Less fortunate were Hollywood Lawrenceburg, down 10% to $13 million, and Belterra Resort, off 3% to $7 million.
Sports betting activity cooled 16%, bringing revenues of $40 million on handle of $452 million. FanDuel led with $18.5 million, then came DraftKings with $9.5 million, BetMGM with $5 million and Caesars Sportsbook at $2 million, with Barstool Sports failing to crack the $1 million threshold.
Patrons attended 6% less in Missouri but spent 5% more per person, resulting in a 1% dip in casino revenues to $150 million. Out front was Ameristar St. Charles, up 2% to $24 million. Neighboring Hollywood St. Louis slipped 5% to $18 million, while Horseshoe St. Louis was flat at $12 million. River City climbed 4% to $21 million. Across the state, Ameristar Kansas City dipped 5% but still eked out Kansas City supremacy with $15 million, closely followed by Harrah’s North Kansas City with $14 million (-6.5%) and Argosy Riverside‘s $13.5 million (flat), with market share continuing to migrate to Bally’s Kansas City, up 10% to $10.5 million. Outstate casinos were led by Isle of Capri Boonville‘s $7 million (+3.5%). Issues with Century Caruthersville‘s riverboat may have contributed to a 16% dive (to $3 million), while Century Cape Girardeau was likewise unfortunate, down 10.5% to $5 million.
While we’re on the subject of Bally’s Corp., its revenue projections for Chicago are aggressive, to say the least. At a recent Truist Securities investor summit, Bally execs predicted a 71% annual ROI on their temporary casino at Medinah Temple (above). And when the permanent casino opens, the expectation is for $400/win/slot/day—double the industry average on a good day—and a $4,600 like figure for tables. To achieve this, Bally’s Chicago would have to be pretty much the most successful casino ever opened in the U.S. and be doing business on a Macao scale. Likely? We don’t think so. Bally’s will also unwind its $90 million purchase of DFS operator Monkey Knife Fight, which never made much sense, but believes it can double its New Jersey i-gaming market share within a year.
The other key takeaway is that casino operators don’t put much stock (pardon the pun) in macroeconomic conditions, saying they’re not showing up in the course of everyday business. Caesars Sportsbook would have become profitable this quarter were it not for having taken John “Mattress Mack” McIngvale‘s World Series bet. For BetMGM, 2023 also looks like the year it starts operating in the black. Elusive profits for DraftKings are still 1.5-2 years away.
Sticking with sports betting, New York State punters wagered $1.5 billion last month, generating revenue of $148 million (most of which went right to Albany). Mum’s the word on how much was given back in the form of promos. FanDuel was again dominant with $78 million, trailed by DraftKings’ $42 million and Caesars’ $15 million, which didn’t leave a great deal of room for competitors, not even BetMGM.
Station Casinos is moving faster than expected on its Inspirada project in Henderson. It has filed plans for an 80,000-square-foot casino and 600-room hotel, plus a bowling alley and cineplex. (Never underestimate the importance of bowling in Las Vegas.) Construction will start in January 2024, hard on the heels of the Durango Station opening. Station has been sitting on the acreage for 15 years and obviously feels the time is finally opportune to move ahead, although it’s not talking. The Inspirada news heavily implies that the Skye Canyon casino is being gently shoved onto the back burner. And that may not be a bad thing, in the long-term view.
Has American Gaming Association President Bill Miller been drinking his own bathwater? He went off his rocker last week by demanding that the Justice Department prosecute offshore Internet casinos. According to Casino.org, Miller’s rationale is that “the legal, regulated commercial industry would be substantially richer if it weren’t for illegal, unregulated offshore operators.” Well gosh, there’s an ironclad argument for criminal prosecution if ever we heard one. BetMGM isn’t making enough money? Sic the feds on international i-gaming, by golly! The AGA’s position is that states are being “robbed” of taxes to the tune of $13 billion because Americans are wagering $511 billion a year overseas. Damn those pesky consumers!
Miller’s goal is not only to shut down offshore sites but prevent their operators from ever becoming licensed in the U.S. Attorney General Merrick Garland has been turning a deaf ear to Miller’s posturings, perhaps being more preoccupied with such mere bagatelles as a violent putsch to overthrow the American government and the theft of classified documents.
Miller also made the unsubstantiated claim that offshore books want to be so “annoying” that legislators eventually give them their benediction. Given that i-gaming in the U.S. is stymied after being legalized in just five states, Miller’s worries seem unfounded. However, that did not stop him from making veiled threats of congressional action. According to one news service, “A member of the FBI told the sports-betting regulators that they weren’t in a position to comment on any ongoing investigations but that the problem is on their radar.” That’s good enough for us, especially when one considers that most of the offending i-gaming operators are outside U.S. jurisdiction. The FBI should smack them down, given the opportunity, but the AGA needs to take a chill pill.
Jottings: Red China‘s dictum that Macao become a predominantly non-gaming destination looks increasingly delusional after reading an interview with Innovation Group analyst Michael Zhu. Convention and exhibition business is a single-digit sector of the Macanese economy, and likely to remain so as long as the enclave is plagued by “limited room inventory, a lack of major events, relatively expensive rates, and aging transportation infrastructure” … The word must have come down from Carson City that Hard Rock International‘s purchase of The Mirage had better be approved pronto Or Else. The Nevada Gaming Commission‘s next meeting has been rushed up to this Friday and nobody’s talking as to the why. It’s highly doubtful that any of the clouds over Hard Rock will be considered … Nothing says “Christmas” like visiting a casino. Perhaps that’s why Genting Group has set Dec. 28 as the opening date for Resorts World Hudson Valley in Newburgh. The mid-market casino will offer 1,200 slots and electronic table games (and not much else) … The Golden Nugget brand is coming to Cripple Creek by dint of Tilman Fertitta‘s purchase of Wildwood Casino & Hotel. Tilman’s keeping mum on how much he paid but plans 538 slots and 12 table games for the rebranded property … Star Entertainment‘s misfortunes continue. The renegade company has been fined $68 million and will operate its Queensland casinos under a “deferred suspension.” If Star doesn’t keep its nose clean for a year, the relevant gambling houses will be closed for three months … Tomorrow: more news from Atlantic City and additional Apollo Management misbehavior.
