Normality in Ohio, disaster in Illinois; Planet Ho sale mooted

Maybe the ‘skinny stimulus’ helped Ohio. Gross gaming revenues of $153.5 million were only 8.5% off last year’s pace. The gambling houses are still operating at 50% capacity and under a curfew but the number remains impressive. Hollywood Toledo continues to benefit from the closures in Detroit (recently lifted), up 14.5% to $18 million. Hollywood Columbus declined 12%, also to $18 million. As for Penn National Gaming‘s two racinos, Hollywood Mahoning Valley grossed $12 million, minus 3% and Hollywood Dayton, up 6.5%, also pocketed $11 million. Belterra Park showed signs of stabilization, down 9% to $6.5 million. Scioto Downs had a good month, down only 1% for $15.5 million. MGM Northfield Park was in a three-way tie for first place, grossing $18 million (a 21.5% tumble). Jack Cleveland, now with 100% less Dan Gilbert, was down 10% to $16.5 million whilst Jack Thistledown gained 13% to $13 million. Hard Rock Cincinnati continues to struggle, plunging 34% to $12.5 million. That only leaves Miami Valley Gaming, down 12% to $14 million.

An extra weekend day may have helped Ohio but it didn’t do squat for Illinois, where gambling revenues fell a catastrophic 74%. How come? Casinos were closed half the month, had to shut down nightly at 11 p.m. and were restricted to 25% of capacity. Whatever pent-up demand existed wasn’t sufficient to even partly compensate. Gross gaming revenues were a pitiful $26 million. Heck, Rivers Casino Des Plaines does that and more in a good month. In this case, Rivers towered over the market with $9 million (-77%) with nobody else coming close. In terms of retaining pre-Covid market share, Boyd Gaming‘s Par-A-Dice did best, off 46% to $2.5 million. Jumer’s Casino Rock Island continues to look like a terrible investment for Bally Corp., eking out $1 million (-72%). It did incrementally worse than DraftKings at Casino Queen, just over $1 million and -82%.

Argosy Belle could barely pay the light bill, grossing $500,000 in a 82% freefall, while Harrah’s Metropolis shed 61% for $2 million. Up north, Harrah’s Joliet fell 79% to $2.5 million and Empress Joliet careened -78% to $2 million. Hollywood Aurora slid $68.5 million to $2 million. Caesars Entertainment‘s Grand Victoria slalomed -71% to $3 million and second place. It’s a great time to be adding six new casinos, right, Gov. Pritzker? There’s a February silver lining, with $45.5 million in Super Bowl handle reported, translating to $7.5 million in revenue. Most of the action was on Kansas City and the “over” was missed, making it a good day for the books.

Here’s a green shoot. Hotel rates are shallowing on the Las Vegas Strip for the first week of March, averaging $99/night. The laws of supply and demand are working best for Las Vegas Sands which, having closed Palazzo, is up 34% midweek thanks to limited inventory and 29% higher on weekends. A similar move at Wynncore isn’t working the same magic. Wynn Las Vegas is down a horrendous 66% on weekdays but only -26% over the weekend. It’s the reverse at Caesars Entertainment, wiped out 66% on weekends but maintaining its weekday price point moderately, -39%. Convention-dependent MGM Resorts International is holding up better than expected, off 30% on weekdays and 25% on the weekend.

Speaking of Wynn Resorts, it’s reported by Credit Suisse analyst Ben Chaiken that the company is recording $70 million in 4Q20 cash flow, most of that from Macao despite gaming revenues being only 32% of 2019 levels. “Wynn has spent the past 6 months reconfiguring some VIP offerings to cater to the premium mass segment, which they expect will drive the recovery. For example, they are adjusting restaurant concepts to appeal to a different player,” Chaiken writes. Besides, he predicts a lean year ahead for VIP play. Las Vegas is said to “challenged.” On the plus side, convention bookings are strong for July-December … but management expects some of those to be cancelled. At least the prospects for Encore Boston Harbor are seen as clear sailing.

PlayUSA is big on Virginia, predicting a cumulative $5 billion in sports-betting handle by Year Three, as well as $400 million in operator revenue. (Minus $60 million/year in taxes.) Virginia has already leapfrogged neighboring Maryland in sports wagering. “Virginia is well-positioned, not only because it is a relatively large market, but because it will likely capitalize on Washington D.C., a legal market that has left some bettors frustrated,” explained analyst Eric Ramsey. “Virginia may also draw from Baltimore—at least until Maryland launches sports betting, as well as North Carolina.” At present, Virginia is online-only, like Tennessee, at least until brick-and-mortar outlets begin opening. The tax rate is pretty fair: 15%.

Marvels PlayUSA’s Dustin Gouker, “Virginia has undergone one of the greatest transformations in history by going from a state with few gambling options to a wide-open state that will allow for online betting and retail casinos. Obviously, Virginia has had the benefit of seeing what has worked in other states. And that has resulted in a regulatory framework that should foster its long-term success.”  Meanwhile, Global Gaming Business crunches the odds of other states joining the sports-betting parade and comes up with a couple that political expert Sara Slane overlooked. Bills have been introduced in Alabama ($100K entry fees, 10% taxation), Massachusetts ($10 million [!] and 15%) and Georgia ($900K and 14%). The latter would require a constitutional amendment, too, unless it’s run by the all-powerful Georgia Lottery. Alabama looks like the easiest pickings, although Bill Sokolic reports, “a man in Houston, where sports betting is illegal, flew from Texas to an airport in Colorado to make a legal $3.46 million bet on Tampa Bay.” Your loss, Lone Star State. Say, where was high roller Mattress Mack last weekend?

ThrillList must have been on crack when it ranked all 53 Super Bowl commercials, awarding top place to a lackluster, Seinfeld-themed one for Tide (s0 unmemorable we had to look it up. The Will Ferrell spot for General Motors came in at #18, behind M&Ms and Hellmann’s Mayonnaise. Grow a sense of humor, ThrillList. (Robinhood, which steals from the poor to give to the rich, came in at #45.)

Jottings: Vital Vegas has a reliable source who says that a sale of Planet Hollywood is pending. Hard Rock International is tipped as the likely buyer, though it also has designs on Venelazzo. But now that Sands CEO Rob Goldstein is taking the megaresort off the sale block, Hard Rock is far likelier to descend upon Planet Ho, which fits more closely with its marketing image. It will be interesting to see how the Planet will do if and when it ever gets competent leadership … Benjamin “Bugsy” Siegel is best remembered for the disastrous opening of the Flamingo in Las Vegas. However, a new “rat-a-tat” biography tries to redeem his image, painting him as the “supreme gangster.” Meyer Lansky would not be amused …. Vegas-based Allegiant Airlines is bullish on 2021, announcing 34 new nonstop routes, including nascent casino market Norfolk and established one Shreveport. And when you absolutely, positively have to get to a super-spreader event on time, there will be nine flights to the Sturgis Motorcycle Rally. Pass the bleach, please.