Louisiana: Robbing Peter to play Paul; New disclosures from Genting

Were it not for the Golden Nugget Lake Charles, gaming revenues would have stumbled 7.5% downward last month. Add Tilman Fertitta‘s new showplace, which grossed $20 million, and you have a 15% increase in the Lake Charles market. But, as good as that was, something was very wrong at Pinnacle Entertainment‘s L’Auberge Lake Charles ($24 million), where revenues plummeted 26%. Golden Nugget also took a big bite out of Isle Grand Palais ($10 million), where revenue fell 16%. Still, at $68 million, Lake Charles was comfortably the premier market in the Pelican State.

Pinnacle’s Lake Charles problem didn’t replicate itself in Baton Rouge, where L’Auberge Baton Rouge was up 20%, grossing $14 million. Well behind were Tropicana Entertainment‘s Belle of Baton Rouge ($4 million, -7%) and Gaming & Leisure Properties Inc.’s Hollywood Baton Rouge ($5 million, flat).

In the crowded Shreveport market, Caesars Entertainment both led (Horseshoe Bossier City, $16 million, +13%) and lagged (Louisiana Downs, $3 million, -22.5%) the competition, although privately held Diamond Jacks ($4 million, -18%) had a hard time of it, too. Even Eldorado Resorts‘ normally reliable, eponymous riverboat disappointed, down 2% on a $10 million gross.

Although Harrah’s New Orleans seemed to have shrugged off the effects of the Crescent City’s smoking ban, problems were back with a vengeance, as revenues ($23 million) were down 15%. Churchill Downs‘ Fair Grounds racino also let smoke get in its eyes, with business down 9% on a $3 million gross. Beneficiaries were Boyd Gaming‘s Treasure Chest ($8 million, +5%) and Pinnacle’s Boomtown New Orleans ($9 million, +5%). It was still a rough month for Pinnacle, as Boomtown Bossier City dipped 4% on a $5 million gross.

Boyd was not so fortunate outside New Orleans. Upstate, Sam’s Town Shreveport was down 13% on a $6 million gross. Similar stories were to be had at Delta Downs ($14 million, -5%), Amelia Belle ($4 million, -12%) and Evangeline Downs ($7 million, -1%). Despite that and other tales of adversity, Louisiana gaming revenues came out 3% ahead for the month. Whatever else it’s done, Golden Nugget has grown the market, thanks in part no doubt to owner Tilman Fertitta‘s deep roots in the Houston customer base.

Better Late Than Never Dept. They waited until the poker wave had crested, but Twin River Casino is finally adding the game to its repertory of offerings. You get your choice of 16 tables and either Texas Hold ’em on seven-card stud. That’s it. Twin River could have added the games at least three years ago, so I’m not sure what the holdup was. Anyway, if you can’t sleep on the weekend, Twin River’s poker room will be open all night.

* While it fiddles around the edges of Resorts World Las Vegas, developer Genting Group hasn’t been wholly idle. It’s set up a subsidiary, Genting Assets, which has 28 little subsidiaries of its own, “for the potential financing of the proposed development of the integrated resort in Las Vegas.” (That’s an awfully conditional statement, isn’t it? “Potential financing”? “Proposed development”?) However, there’s comfort to be had from remarks Genting execs made on a conference call with Maybank IB Research.

“They said during the third quarter 2015 conference call that they are going to start work in mid-2016 with a soft opening in 2018. Selling the land is not an option,” said one analyst. That’s the strongest commitment we’ve had from Genting so far, particularly with regard to the real estate, which Genting picked up from Boyd Gaming for a song. Genting says the project “requires a rigorous planning and approval process,” which seems to be where it is right now. But for a $4 billion megaresort (gigacasino?), Genting’s going to have to roll it out with maximum fanfare. A soft opening hardly seems the way to go, especially as soft openings often land with a resounding “squish.”