There’s a little something extra in the stockings of Pennsylvania casinos … a rather big something extra, actually. 
Keystone State casinos grossed 22% more than last November. Throw in a $15 million month at SugarHouse (below) and it’s a 31.5% increase. Table games — to the tune of $38.5 million — drove the overwhelming bulk of the increase, with slots up only 2%. One notable exception was Sands Bethelehem (above), whose 36% pole vault was heavily boosted by slot play (up 13%). At least as far as the $724 million initial phase of Sands Bethlehem is concerned, Sheldon Adelson still might be able to make his lavish expenditures pencil out over the medium term.
By contrast, Penn National Gaming‘s improved performance (+13%) at its namesake racino was entirely a function of table play, with slot performance flat from November ’09. The closest thing to an actual disappointment was Harrah’s Chester Downs, “only” up 8%, finishing the month with $26 million, second only to Parx Casino‘s $36 million. By comparison, mammoth Rivers Casino continues to underperform, although its $24 million gross was a 52% increase from a year ago.
For everyone else, it was time to pass around the Christmas cheer: Mohegan Pocono Downs +21%; Parx +26%; Presque Isle +16%; The Meadows +10%; Mount Airy +26%. Additional good news came in the form of the announcement by Caesars Entertainment that it was leaving the hapless Ed Snider consortium to its own devices and good luck to them. CEO Gary Loveman‘s fit of Philly Madness appears to have passed. I know I give Loveman a hard time but swearing off further pursuit of Snider’s Chimera was one of the best calls Loveman’s ever made.
Rather than wait for the Snider group to work its issues out through the courts, state Rep. Curt Schroeder (R) is already typing up a bill that would put the erstwhile Philadelphia license back on the block, priced to move ($50 million). There’s at least one rival group that would like to bring it back to Philly. Lucky for them, a second license may soon be up for grabs.
The obvious alternate choice is Johnstown and Philadelphia’s chaotic political scene has given the Lege no shortage of reasons for wanting to put that last casino somewhere, anywhere else. A few lawmakers are making noises about simply placing the license int the deep freeze. If slot revenues continue to flatten, they’ll have a legitimate argument.
Elsewhere, Caesars is trying to punt $551 million in Planet Hollywood debt into 2015. That’s all well and good for near-term survival, but it doesn’t placate those potential investors who look at the company’s disproportionate debt burden with dread. To some, this move will look like another “extend-and-pretend” strategy that builds up what Moody’s would characterize as “a towering debt obligation in the years ahead.” On the bright side, one of Loveman’s favorite borrowing vehicles is making a comeback.
Pot of gold. That’s what lawmakers in Ireland hope to find, as they contemplate legalizing one, 1,500-slot “resort” casino, possibly in Tipperary. I’d wish them luck but this looks like a sure thing.
