MGM Resorts International says it is no longer going to give Wall Street forward guidance on earnings. Why not? It beat its own forecasts by 3% on the Las Vegas Strip, 
4% in its regional properties and 8% in all-important Macao. Analyst Cameron McKnight of Credit Suisse wrote that management “sounded cautious on the 1Q and 1H, given cost inflation, reduced Chinese visitation and a more uncertain leisure customer. That said, the outlook for convention attendance is strong, non-gaming revenue growth should remain solid, and MGM noted full year Vegas estimates ‘seem reasonable.'” JP Morgan‘s Joseph Greff stayed on positive on the stock, noting “reasonably good operating fundamentals in the U.S. (both LV Strip and regionals),” among other reasons.
There’s an interesting detail lodged deep within the number-crunching of Greff’s price target: While he values most of MGM’s major assets at 10.5X-11X cash flow, MGM Springfield is only 8X, down there with Circus Circus. That’s pretty damning for a new trophy property. Thanks to an insurance recovery at Mandalay Bay of $24 million, MGM reported $401 million in cash flow on the Strip, easily beating Wall Street’s $366 million consensus. Strip room revenues were up 1.5%, slot handle 7% and table wagering 11%. Troubled MGM Cotai had a much-improved, $52 million return on investment, more than double it projection. So why the long face, Mr. Murren?
* The fix is not in. International sports-integrity body ESSA had only report of suspicious wagering in the sweet science last year. By contrast, e-sports was put on 
report seven times and–dominating all other disciplines–tennis generated 178 reports, more than half the total. Who’da thought, especially in a sport that tolerates the tanking of matches? Europe is a hotbed of suspect activity, led by Spain and Italy. Americans shouldn’t gloat, though. ESSA is just getting around to monitoring us. Said its secretary general, Khalid Ali, “One of the biggest concerns of the betting market opening up in the U.S. is integrity; as a result, we assisted the establishment of the Sports Wagering Integrity Monitoring Association, our American equivalent, with whom we will work closely to combat sports betting related corruption on a global basis.” What’s the cleanest sport? Well, nobody filed a suspicious-betting report on cricket. We might have to retire the saying that “It’s just not cricket,” old boy.
* Rhode Island got one step closer to mobile sports wagering as the enabling legislation passed out of the state Senate. The vote was overwhelmingly in favor of the technology, with only four dissenting voices. The only “skins” would belong to the Twin River-branded casinos in Tiverton and Lincoln. The tiny state already offers bread-and-butter sports betting, so if the mobile-wagering bill passes out of the Lege it will only make Rhode Island that much more competitive. Barring a negative vote in the House, the bill is considered a cinch for Gov. Gina Raimondo‘s signature, given that she has already baked the projected revenue ($3 million) into her 2019/20 budget.
