Given “softer than expected” numbers out of Macao, expect Wall Street analysts to dial down their expectations for the balance of the year. Gaming revenues rose ‘only’ 9% instead of the expected double digits and there was a surprise leader in VIP table share: Galaxy Entertainment, although Stanley Ho‘s casinos played luckier, holding 28% of VIP play to Galaxy’s 26%. In mass-market play, Las Vegas Sands was far and away the leader, with 32% of market share. In overall market share, Sands eked out a .1% victory over Sociedade de Jogos de Macau.
Hanging in their pretty impressively was MGM Grand Paradise, whose market-share numbers almost matched those of Wynn Macau and Melco Crown Entertainment, although MGM has only one casino versus the multiple properties owned by its rivals.
* Conventional slot makers continue to blur the line with the social-gaming sphere. Yesterday it was announced that Bally Technologies has bought Israel-based Dragonplay for $51 million in cash and $49 million in employee-retention fees and other performance-based compensation. Dragonplay, maker of Live Hold’em Pro and Dragonplay Slots, has presences on Apple iOs, Facebook and Android.
Wrote J.P. Morgan analyst Joseph Greff, “We believe the price is reasonable, the deal makes strategic sense (putting proprietary BYI slot content on the Dragonplay platform), and gives BYI an additional growth driver (albeit small).” Bally will fund the deal largely out of cash at hand, $51 million being pocket change in the casino business.
* Station Casinos has taken one of its grindiest grind joints, the Lake Mead Lounge, and revamped it under the Wildfire brand. A fixture of the drive out to Lake Las Vegas, the Wildfire Lake Mead will (we are assured) “feature almost 60 slot machines, a sports lounge, bar and quick service food offerings.” That sounds like a Dotty’s on steroids but let’s give Station credit for offering a bit more.
* Insert Coins may be offering video game/slot hybrids sooner than you think. Gamblit Gaming has been approved for three varying types of manufacturer licenses by the Nevada Gaming Control Board. In an unfortunate pun, the board described the move as “game changing.” “The bottom line is, this is what needs to happen in the state of Nevada,” Added Chairman A.G. Burnett.
Nasdaq-traded American Capital owns Gamblit by way of intermediary company Hard 8 Gaming. Acceptance of the new type of gambling by players will be a small hurdle compared to that posed by Gamblit’s business model. It proposes leasing the Scrabble-meets-slots machines on a revenue-sharing basis. History has shown that casino executives would sooner sacrifice their first born than share gambling lucre with the slot companies that make it possible.
