Casino revenues in the Pelican State were up 2% last month, entirely upon the strength of Pinnacle Entertainment‘s L’Auberge Baton Rouge (above). It propelled the Baton 
Rouge market 58% upward, grossing $11 million at the expense of Argosy Baton Rouge (-10%) and especially Penn National Gaming‘s Hollywood Baton Rouge (-25%). Still, Pinnacle is growing the “Red Stick” market, not just cannibalizing it. The bright spot in Shreveport (-5% overall) was Horseshoe Bossier City, up 9%. Caesars Entertainment also had a strong month at Harrah’s New Orleans (+5.5%), whereas the rest of the Big Easy market — with the exception of the Fair Grounds racino (+7%) — was in the doldrums. Even Lake Charles had an atypically “off” month, down 5%. Bottom line: It was an encouraging October for Pinnacle (+20%) and Caesars (+5%); for Boyd Gaming (-6%) and Penn National, not so much.
Cordish makes love, not war. Despite being nominally opposed to Question 7, the leading casino operator in Maryland has decided it would rather switch than fight. Cordish 
Gaming‘s enormous Maryland Live slot parlor has already held a big media hoedown to promote its new table-game offerings. The slot floor will be thinned out in order to add 150 tables and a poker room, and hours of operation will soon be ’round the clock. A hotel is tentatively planned but David Cordish must be smoking something powerful when he says the result will be “a world-class, full-destination casino that will equal and exceed anything in Las Vegas or Atlantic City.” I have a one-word response to that: Bellagio. (Similar — but hype-free — plans are being made regarding Horseshoe Baltimore.)
At least Cordish has the money in his kitty to do additional construction. Imagine being Penn National Gaming and having to fund capital improvements at Hollywood Casino Perryville on top of the $40 million that was lost fighting Question 7 and the millions that will probably be wasted on a legal challenge. The court argument is priceless: Question 7 should have failed because it wasn’t approved by a majority of all registered voters, not just those who actually voted. If ever a lawsuit deserved to be laughed out of court, that’s one.
While Penn was preoccupied with Maryland, it drifted perilously close to losing its lease on the Argosy Sioux City riverboat. A land-based casino is in the cards for the near future, but 
whether it will be Penn’s or not remains to be seen. Ergo, Penn is belatedly negotiating with Sioux City officials, after stiff-arming them for several weeks. (I can’t imagine why.) Although the lease expires Jan. 31, Penn has roughly a month to actually strike a deal with the city. It’s insisting upon a two-year renewal with no increase in the 3% local tax rate. I don’t think that’s gonna float.
Amazingly, there are still banks — three, to be specific — willing to lend money to hand-to-mouth Caesars Entertainment. One analyst implies that the involvement of Victor Drai in converting Bill’s Gamlin’ Hall & Saloon into a strange hybrid to be known as Caesars Drai’s was the winning card in Caesars’ hand. Does this mean Drai will be in first position when the loan comes due? If Credit Suisse, for one, lent the money to Caesars itself, it must have been because it would have taken more effort to burn it instead.
Savior to failure? If there was one thing $2.4 billion Revel didn’t need it was Hurricane Sandy. When a new megaresort posts subpar, also-ran gambling revenues, it’s a problem. 
When it comes up $100 million short on operating costs and needs to borrow more, we’re probably talking “crisis.” And when Sandy washes your fourth quarter into the Atlantic Ocean and even the grind joints are doing better, it’s time to man the lifeboats. (Or at least start thumbing through the book in search of Chapter 11.) Revel has an $850 million loan which, while not due until 2017, already has Wall Street analysts uttering the D-word: “default.” While Atlantic City has needed new, diverse resort product for a decade, a casino-hotel that contains “10 swimming pools [and] 14 celebrity-chef restaurants” but de-emphasizes gambling sounds like an enormous overreach. It’s the CityCenter of the Boardwalk, the crucial difference being the CityCenter has been making its “nut” and Revel hasn’t.
Agreed on Revel. They are in deep trouble. Lots of design flaws and no emphasis on the gaming aspect from Day 1 (I was there). Regardless, when people emphasize that City Center is now profitable, let us not forget that MGM/Dubai wrote down BILLIONS in value on the project. Was it about 50%? They never had to declare BK, but perhaps Revel wont have to either. Who know?. I am wondering; however, is Carl Icahn already licking his fingers to get a bite at it???
Anything done at Maryland Live! or Horseshoe BMore could certainly rival most of what AC has and be better designed, too.
I do hope Revel can get their act together. Sounds like they might benefit from signing on with someone like MGM for the customer base. It really is a neat place. Add a couple more escalators and it would be a lot better.
MGM, unfortunately, is persona non grata in the State of New Jersey. Caesars can’t expand its Atlantic City presence — probably a bad idea in any event — due to anti-trust rules. But that still leaves Penn, Pinnacle, Ameristar (which has marketing ties to MGM), Cordish and several other potential managers. Despite Revel’s proximity to Philadelphia, I wouldn’t rule out Neil Bluhm as a candidate to pick it up on the cheap, either.
I guess even as a marketing co-share? I know Jersey has been leery about MGM’s Macau connections, but I would think a functioning casino that might be able to lay claim to having a in-house Crique show, alone with whatever MGM does here in Maryland, is far better than a bankruptcy liquidation and fire sale.
Shame too. It really is a beautiful place.
Heheheh, one my reCaptach words is “difficulties.”