Chicago: Then there were three … ; Leaner, meaner Boyd

Posted on March 24, 2022 by David McKee

Enjoy these images of Rivers McCormick while you can because you’ll never see them again. Chicago Mayor Lori Lightfoot has nixed McCormick Place as a potential site for a casino, setting Bally’s Corp. and especially Rush Street Gaming down a peg but not out of the game entirely. At the same time, Lightfoot kicked the casino-selection deadline into “early summer,” which flies in the face of her stated goal of having a Windy City casino up and running by 2025. “We have spent countless hours analyzing each proposal for Chicago’s casino license and have determined Bally’s Tribune, Hard Rock Chicago, and Rivers 78 best fit the core goals we want to achieve for the City’s first integrated casino-resort,” said Lightfoot, giving the short-answer version of her decision.

“Each proposal offers economic, employment, and equity-focused opportunities for Chicago, while simultaneously enhancing the City’s cultural, entertainment and architectural scenes with world-class amenities and design. Our teams look forward to heading into discussions with the finalists and getting one step closer to bringing this decades-long project to fruition.”

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Posted in Bally, Boyd Gaming, Chicago, Culinary Union, Economy, Hawaii, Marketing, Neil Bluhm, Politics, Regulation, Rush Street Gaming, Station Casinos, Taxes, Tourism, Transportation | 1 Comment

Mulligan in Virginia; Caesars makes peace; Labor strife in Vegas

Posted on March 22, 2022 by David McKee

Richmond Mayor LeVar Stoney (D) is going to get his dearest wish: an electoral do-over for the Urban One casino proposal, which voters narrowly nixed at the ballot box last November. A year later, the electorate will get a chance to revisit the issue, now that a local judge has ordered it placed on the 2022 ballot. While the referendum question only specifies the location of the casino, we know darn well who will benefit from a win. Interestingly, opposition to the casino includes the local chapter of Unite-Here, which is skeptical that Urban One is going to provide good jobs, salaries and benefits. Union lobbyist Sam Epps said his constituents are “disproportionately affected by income inequality and bad jobs. Workers need to understand how they will benefit from new casino development before it moves forward.”

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Posted in Barstool Sports, Caesars Entertainment, Canada, Culinary Union, Dining, El Cortez, Election, Entertainment, Environment, Health, Indiana, Kentucky, Mississippi, Nevada, Ohio, Palms, Penn National, Regulation, Rush Street Gaming, South Carolina, Sports betting, Station Casinos, Taxes, TV, Unite-Here, Virginia, Wynn Resorts | Comments Off on Mulligan in Virginia; Caesars makes peace; Labor strife in Vegas

Sunday Special: Coming down the Oscar stretch

Posted on March 20, 2022 by David McKee

With one week until the Academy Awards, you still have time to get your money down in New Jersey and Indiana. (Why not Nevada, we ask?) Although its odds have narrowed significantly, The Power of the Dog (DraftKings -280/BetMGM -250) is still the picture to beat. If you feel like playing long shots (and we’re not talking about hopelessly out-of-it ones like +8,000 Nightmare Alley), there’s a serious chance the Academy could go with predictable CODA (+400/+450), which has usurped Belfast‘s feel-good mojo, moving way, way up from +2,500 (Belfast: +650/+600).

“Apple: Television for Oscars”

Proudly mediocre, CODA is the best Lifetime Channel Original Movie ever made but Oscar voters could split the ticket much as they did when they anointed mushy The Green Book over Best Director/Best International Film winner Roma. At this point, Power of the Dog writer/director Jane Campion remains a prohibitive (-3,500/-3,000) favorite to take home the Best Director prize, besting Belfast‘s Kenneth Branagh (+1,400/+1,400) and sentimental choice Steven Spielberg (+2,000/+1,200), who’s forsaking cinemas for streaming services after West Side Story. If there’s any movement toward an upset in this category it’s Licorice Pizza helmer Paul Thomas Anderson, tiptoeing up to +2,000/+3,300.

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Posted in BetMGM, DraftKings, Indiana, Movies, New Jersey | 1 Comment

Penn’s Portnoy problem; Unexpected winners, losers in Pennsylvania; Mega-Jottings

Posted on March 18, 2022 by David McKee

That ongoing bromance between Barstool Sports founder Dave Portnoy and Penn National Gaming CEO Jay Snowden is prompting regulatory scrutiny in Indiana and even Nevada, especially as Penn girds its loins for a full Barstool buyout. That would bring the uncouth Portnoy into the Penn fold as a key player in the company—and he’s not exactly someone you’d want to bring home to the gaming control board. The brash Portnoy faces serial accusations of sexual assault (which he denies) and Snowden has lashed himself to the Barstool mast. As the Wall Street Journal puts it, Snowden “stands by Mr. Portnoy and still believes in Barstool’s media appeal as key to the company’s future in sports betting and digital media.”

Portnoy’s questionable character has already cost Penn a shot at the New York State OSB market—although it could get a second bite of the Big Apple as money-mad lawmakers are pondering doubling the number of OSB licenses in the Empire State. Snowden has joined the chorus of those who say the current level of sports betting market is unsustainable. If Penn gains Barstool as an exclusive megaphone for its product, those costs could be shaved substantially. “They’re profitable, which is rare for a lot of digital media businesses,” Snowden told the WSJ. “They’ve delivered on what they said they would do.”

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Posted in Architecture, Barstool Sports, Baseball, BetMGM, Boyd Gaming, Caesars Entertainment, Churchill Downs, Cordish Co., Detroit, DraftKings, FanDuel, Greenwood Racing, Horseracing, Indiana, International, Internet gambling, Las Vegas Sands, Marketing, Massachusetts, Mohegan Sun, Nevada, New York, Ocean Resort, Oklahoma, Penn National, Pennsylvania, Regulation, Rush Street Gaming, Sexual misconduct, Sports betting, Taxes, Tourism, Tribal, Wall Street, WInd Creek | 2 Comments

Atlantic City, Massachusetts make big gains; Hotel misery

Posted on March 17, 2022 by David McKee

Casino executives in Atlantic City continue to plead poverty (to a dwindling amen corner) when it comes to poisoning their employees with secondhand smoke. In the meantime, they’re pocketing business hand over fist. Last month saw a 43% catapult over February 2021. And even when compared to supercharged 2019, casino revenues were still 8% higher. The Boardwalk grossed $212.5 million, $154 million of that from slots on 7% higher coin-in than three years ago. Table games contributed $57 million, and both slot and table winnings accelerated from January.

Except for the Tropicana ($17 million, +8%), all casinos were up by double digits from last year. Borgata was business as usual: $53 million and a 43% jump. As one would expect, the biggest percentage gainers were Hard Rock Atlantic City ($37.5 million, +58.5%) and Ocean Casino Resort ($30 million, +58%) but Bally’s Atlantic City posted strong comparisons too ($11 million, +54%), despite being in last place. It lagged the Golden Nugget ($13 million, +48%) and Resorts Atlantic City ($13 million, +44%) among the grind joints.

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Posted in Atlantic City, Bally, BetMGM, Boyd Gaming, Caesars Entertainment, DraftKings, Environment, FanDuel, Golden Nugget, Hard Rock International, Health, Internet gambling, Massachusetts, MGM Resorts International, Michigan, Mohegan Sun, New York, Ocean Resort, Penn National, Pennsylvania, PointsBet, Sports betting, The Strip, Tilman Fertitta, Unite-Here, Wynn Resorts | 2 Comments

Empire State greed; Brady betting brouhaha

Posted on March 15, 2022 by David McKee

Wow, inflation really is spiraling. When last we checked (i.e., yesterday), a New York City casino license was going for $500 million. However, if some state senators get their way, that not-inconsiderable price tag will rocket to $1 billion. According to a senatorial state budget, snuck out on Sunday, New York State “shall determine a licensing fee to be paid by a licensee within thirty days after the award of the license which shall be deposited into the commercial gaming revenue fund; provided however that such licensing fee shall be no less than one billion dollars per license.” The Assembly has put no dollar amount on the license.

You have to wonder: If that’s the price of admission, is it worth it? Should MGM Empire City and Resorts World New York just stick with VLTs? Not to worry, senators have an incentive for them to pony up, essentially guaranteeing them licensure: Lawmakers would have to “consider private capital investment made previous to the effective date.” In other words, capex investments would be discounted from the license price. Expect Las Vegas Sands and others to cry foul.

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Posted in Charity, Downtown, FanDuel, Genting, Golden Nugget, Hard Rock International, Health, Illinois, Indiana, LVCVA, Marketing, MGM Resorts International, New Jersey, New York, Ocean Resort, Politics, Sports betting, Taxes, The Strip, Tony Hsieh, Transportation, West Virginia, Westgate LV, Wynn Resorts, Wyoming | 1 Comment

New York $tate of mind; DraftKings gets rabies

Posted on March 14, 2022 by David McKee
Courtesy: Shutterstock

OK, so New York State sports betting “slowed slightly” last month. Big deal. After all, there weren’t five weekends of NFL action, for starters. What’s more newsworthy is the $1.5 billion in handle that Empire State online sports betting whipped up. Admitted PlayUSA‘s Mike Mazzeo, “As big as the Super Bowl is, it is still just one game. And a slowdown in the immediate aftermath of the game is to be expected everywhere.” Besides, PlayUSA is already predicting $3 billion in nationwide wagers on March Madness, so the minor lull will be brief. New Yorkers bet online at a $54.5 million per day clip, and out of a $82.5 million gross, books kept $40.5 million (less promotions) as the state racked up $42 million in taxes … although Assemblyman Gary Pretlow (D) is making noises about a tax cut, which might actually enable New York OSB operators to post a profit.

DraftKings was second in handle ($387.5 million) but first in revenue with $30 million. FanDuel flipped the stats with handle of $568 million but only $23 million in winnings. Former leader Caesars Sportsbook took a tumble, with handle of $323.5 million and revenue of $20 million, a big comedown from January’s $59 million.

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Posted in Bally, Boyd Gaming, Caesars Entertainment, Churchill Downs, DraftKings, Environment, FanDuel, Golden Nugget, Japan, Las Vegas Sands, Law enforcement, Louisiana, New York, Penn National, Sports, Sports betting, Station Casinos, Taxes, The Strip, Tribal, Wall Street | 1 Comment

Decline of the Golden Nugget?; Bluhm gets Chicago boost

Posted on March 11, 2022 by David McKee

On March 7, our Atlantic City correspondent wrote to us, “Who took the slot machines since yesterday? They even got rid of two of the four “vanity’ Tilman Fertitta dollar Billionaire Buyer machines. (I never saw anyone at those machines). It was lightly attended as the next photo indicates.” (Borgata, by contrast, was “very busy.”)

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Posted in Atlantic City, Bally, Barstool Sports, BetMGM, Boyd Gaming, Caesars Entertainment, Chicago, China, Churchill Downs, Colorado, Detroit, DraftKings, Environment, FanDuel, Full House Resorts, Genting, Golden Nugget, Hard Rock International, Illitch Family, Indiana, Marketing, MGM Resorts International, Neil Bluhm, New Jersey, New York, Penn National, PointsBet, Politics, Rush Street Gaming, Scientific Games, Sports betting, Taxes, Tilman Fertitta, Tribal, Wynn Resorts | 1 Comment

Bounty in Missouri, penury in Macao

Posted on March 10, 2022 by David McKee

Customer bucks continued flowing big-time in Missouri casinos last month, up 19% over 2021. The total gross was $146 million as customers spent 2.5% more per visit and came in 16% greater numbers. Almost casinos were revenue-positive (some spectacularly so) with two Caesars Entertainment exceptions, including Lumiere Place, down 3% to $11 million. Let’s hope that the Horseshoe rebranding comes with some capex reinvestment. Ameristar St. Charles (pictured) easily remained the top dog, up 5% to $23 million. Hollywood St. Louis leapt 47% to $17.5 million while sibling property River City jumped 46% to $19.5 million.

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Posted in Bally, Barstool Sports, BetMGM, Boyd Gaming, Caesars Entertainment, Century Casinos, China, DraftKings, Election, FanDuel, Galaxy Entertainment, Genting, Health, Illinois, Las Vegas Sands, Macau, MGM Resorts International, Missouri, Nevada, Penn National, Rush Street Gaming, Sociedade de Jogos de Macau, Sports, Sports betting, Taxes, Tourism, Wynn Resorts | 2 Comments

Ohio, Illinois ebullient; MGM expects good things; Scandal in NFL

Posted on March 8, 2022 by David McKee

Ohio casino revenues were up 13% from 2021, yielding $179 million in player losses. Slots-only MGM Northfield Park posted a $22.5 million haul, up 17%, while Jack Cleveland vastly expanded its table game inventory and saw table play rise 24.5%. The downtown casino grossed $20 million, a 10% gain, while Jack Thistledown inched up 6% to $14.5 million. Hollywood Toledo made $18 million, a 3% nudge, and Hollywood Columbus crept up 5% to $18.5 million. Hard Rock Cincinnati leapt 31% to $19 million, Scioto Downs climbed 13% to $18 million and Miami Valley Gaming vaulted 29% to $17.5 million. Belterra Park was up 5% to $7 million, while other outlying racinos prospered even more. Hollywood Dayton gained 7% to $12 million while Hollywood Mahoning Valley‘s 13% jump was good for $12.5 million.

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Posted in Arkansas, Bally, Boyd Gaming, Caesars Entertainment, Churchill Downs, Conventions, DraftKings, Economy, Hard Rock International, Illinois, Internet gambling, Jack Entertainment, Japan, Marketing, MGM Resorts International, Ohio, Penn National, Sports, Sports betting, The Strip, Tribal, United Kingdom, Vietnam, Virginia | 1 Comment

Almost everyone prospers in Maryland; Broader revival continues

Posted on March 7, 2022 by David McKee

There’s no sign of “normalization” of gaming revenues in Maryland, where February yielded $163 million, a 19% gain over 2019. Horseshoe Baltimore continued to be somewhat sickly, down 14% to $18 million while everyone else climbed. The silver lining was that it was 10% above last year and $3 million ahead of Deutsche Bank expectations. MGM National Harbor led with $66 million, up 22%, while Maryland Live, not to be outdone, grossed $59.5 million, a 29% leap. Hollywood Perryville jumped 30% to $8 million and Ocean Downs galloped 15% ahead to $6.5 million. Out west, Rocky Gap Resort hopped 27% to $5.5 million.

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Posted in Architecture, BetMGM, Caesars Entertainment, Carl Icahn, Churchill Downs, Cordish Co., Downtown Grand, Entertainment, Fontainebleau, Golden Gaming, Illinois, Indiana, Louisiana, Maryland, MGM Resorts International, Missouri, Ohio, Penn National, Scientific Games, Sports betting, The Strip, Tourism, Wynn Resorts | 1 Comment

DraftKings flexes its biceps; New names, same players

Posted on March 4, 2022 by David McKee

Probably in reaction to a precipitous plunge in DKNG shares, DraftKings hosted an investor day in which it told Wall Street analysts that everything is coming up roses. Its lead point was that its ‘total addressable market’ (translation: potential bettors) is $26 billion, up from $22 billion a year, that Internet gambling is now worth $48 billion rather than last year’s $40 billion and that Canada is a $6 billion market. As Deutsche Bank analyst Carlo Santarelli discreetly pointed out, these figures are way out of whack with what online sports betting and i-gaming are actually realizing in terms of revenue. True, DraftKings has greatly increased its Internet-casino market share—especially in New Jersey—but by dint of purchasing Golden Nugget Online. Santarelli headlined his report, “If It’s All Like New Jersey; It’s All Good… We Doubt it Will Be.”

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Posted in Barstool Sports, Canada, Cordish Co., DraftKings, GLPI, Golden Nugget, Internet gambling, Maryland, Penn National, Pennsylvania, Scientific Games, Sports betting, Wall Street | Comments Off on DraftKings flexes its biceps; New names, same players

Boardwalk bulletin; George gesture from Apollo

Posted on March 3, 2022 by David McKee

Pressure to end smoking in New Jersey casinos continues to ramp up on legislators. Said former governor Richard Codey (now a state senator), “When I was governor, we passed smoke-free legislation that covered almost all of our state. Restaurants complained their businesses would suffer, but, in fact, the opposite happened — customers loved the smoke-free environment. The same will happen with the casinos.” The latter, of course, are resorting to Chicken Little tactics that have little basis in reality. Heck, industry publisher Roger Gros will be happy to tell you how much gaming executive complain (privately) about the costs, especially in wear and tear on their properties, caused by smoking. But in public they tie themselves to the mast of a sinking ship.

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Posted in Apollo Management, Architecture, Atlantic City, Bally, Caesars Entertainment, Colorado, Conventions, Dan Lee, Dining, Donald Trump, Genting, Golden Nugget, Health, Macau, Marketing, MGM Resorts International, Politics, Problem gambling, Regulation, Resorts World LV, Sports, Sports betting, Texas, The Strip, Virginia | 1 Comment

IGT: Biz as usual; Borgata ups the ante; Mega-Jottings

Posted on March 1, 2022 by David McKee

Wall Street analysts were rather ho-hum about International Game Technology‘s 4Q21 earnings announcement. The company’s cash flow from lotteries were almost exactly as predicted ($335.5 million, revenue of $687 million) while gaming brought in $66 million (on revenues of $321 million). The digital segment was a relative disappointment: $9 million instead of the predicted $16 million in EBITDA, while corporate costs overshot the mark, $24 million rather than the expected $19 million. Yawned Credit Suisse analyst Ben Chaiken, “We think 4Q numbers are likely good enough, with important segments (Lotto and Gaming) inline, and we think the miss on digital and corporate should be looked over.” Management continues to project as much as $4.3 billion in 2022 revenues—and why not? By and large they’re hitting their numbers. Chaiken did think it imperative that “new CEO Vincent Sadusky … establish a narrative of extrapolating hidden/underappreciated value in IGT.”

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Posted in Atlantic City, Bally, Chicago, Cretins, Crown Resorts, Entertainment, Hard Rock International, Health, IGT, International, Internet gambling, James Packer, Law enforcement, Macau, MGM Resorts International, Missouri, New York, Ocean Resort, Philippines, Politics, Sports betting, Taxes, The Strip, Virginia, Wall Street | 1 Comment

Twin Spires collapse; The Great Buffet Battle

Posted on February 28, 2022 by David McKee

Online sports betting has claimed its second victim. First it was Wynn Interactive. Now it’s Churchill Downs subsidiary Twin Spires. Too much competition and too little profitability were the reasons cited by CEO Bill Carstanjen. CHDN will also cease its Internet-casino operations. It will, however, retain its four retail sports books, including Rivers Casino Des Plaines, as they are all performing in the black. “We had high hopes for the potential to build a profitable business in this space … We have profitable retail sports books in four of our casinos. However, the online sports betting and online casino space is highly competitive, with an ever-increasing number of participants that the states have licensed,” Carstanjen said, adding that he did not see a path to profitability in OSB “for at least several years.” Which was too much red ink for Churchill Downs to stomach.

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Posted in Century Casinos, Churchill Downs, Cretins, Florida, history, Illinois, Indiana, Internet gambling, Movies, New York, Peninsula Pacific, Pennsylvania, Seminole Tribe, Sexual misconduct, Sports betting, Virginia, Wall Street, Wynn Resorts | 2 Comments

Mega-January on the Strip; Much ado about Caesars

Posted on February 25, 2022 by David McKee

January’s Nevada gambling-revenue numbers are out and the Silver State topped $1 billion yet again, a 41.5% boost over last year. However, some jurisdictions manifested slight declines, a sign that casino activity may be “normalizing” after a heated 2021. To get that out of the way, the Elko area was flat, with Wendover ($21.5 million) down 2%, while Lake Tahoe dipped 4% to $17 million. Nearby Reno gained 8% to $74 million. The Las Vegas Strip vaulted 76.5% to $587 million while Downtown climbed 38.5% to $68 million. Strip numbers were clearly aided by a 109% increase in passengers passing through Reid International Airport, some 3 million strong. International travel, while slim (94K passengers) was up 337.5%. North Las Vegas eked out a 6% gain to $22 million and the Boulder Strip jumped 28.5% to $85 million. As for drive-in (or would that be ‘drive by’?) markets, Laughlin made $42 million (+26%) and Mesquite was up 11% to $14.5 million, while miscellaneous Clark County brought in $130 million, a 15% uptick.

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Posted in Animals, Arizona, Atlantic City, Bally, Baseball, Boulder Strip, Caesars Entertainment, Churchill Downs, Conventions, Dining, Downtown, Genting, Health, Internet gambling, Lake Tahoe, Laughlin, Louisiana, Marketing, Mesquite, Nevada, New Jersey, New York, North Las Vegas, Peninsula Pacific, Pennsylvania, Planet Hollywood, Politics, Reno, Singapore, Sports, Sports betting, Texas, The Strip, Tourism, Tribal, Wall Street, Wendover, Wisconsin | 2 Comments

By the seaside

Posted on February 24, 2022 by David McKee

We’re just back (and exhausted) from dealing with a harrowing family emergency. Fortunately, our East Coast correspondent has been busy during our absence and files the following photo essay …

Ocean Resort: “I asked for a small piece” at the Avila Lounge, “and I got a large one.” George!

The casino was “well attended” and a promotional hoodie giveaway could hardly have hurt.

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Posted in Atlantic City, Bally, Cordish Co., Dining, Golden Nugget, Law enforcement, MGM Resorts International, Ocean Resort, Pennsylvania | 3 Comments

Louisiana levels off, DraftKings sucks wind, Golden gilded

Posted on February 18, 2022 by David McKee
Harrah’s New Orleans (Courtesy: Shutterstock)

Gaming analysts have been cautioning us to expect “difficult comparisons” between 2022 and previous high-water years late 2019 and 2021. Indeed, Louisiana‘s January was flat with 2019, if up 8% from last year. Sports betting was weak: $49 million in handle, boiling down to $5 million in revenue. Harrah’s New Orleans wasn’t exactly a bastion of strength either, falling 22% to $18 million. Boomtown New Orleans picked up 23% to finish at $11.5 million while Treasure Chest ceded 1% for $8 million and Fair Grounds racino slipped 7% to $3.5 million. Out in Lake Charles, victory went to L’Auberge du Lac, leaping 24.5% to $30 million. Golden Nugget gained 18% to finish with $26 million and Delta Downs was off 14.5% to $12.5 million. In Baton Rouge, decrepit Belle of Baton Rouge eked out $1 million in a 58.5% plunge. Hollywood Baton Rouge slipped 5% to $4 million while L’Auberge Baton Rouge exercised its usual dominance with $17 million, a 61% moonshot.

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Posted in Apollo Management, Atlantic City, Bally, Baseball, Boyd Gaming, Caesars Entertainment, Churchill Downs, DraftKings, Economy, Eldorado Resorts, Florida, G2E, Golden Gaming, Golden Nugget, Hard Rock International, Hawaii, Japan, Las Vegas Sands, Laughlin, Louisiana, New Jersey, New York, Peninsula Pacific, Penn National, Regulation, Resort fees, Slot routes, Sports betting, Tourism, Wall Street, Wynn Resorts | Comments Off on Louisiana levels off, DraftKings sucks wind, Golden gilded

Wynn steals its own thunder; Atlantic City hits a downer

Posted on February 17, 2022 by David McKee

Leave it to Wynn Resorts to squelch news of a bad 4Q21—losing $256.5 million—with an, oh by the way, announcement that it was selling Encore Boston Harbor for $1.7 billion (essentially breaking even on construction costs) and leasing it back. The move is out of character for Wynn, which likes to own its real estate. The company will be renting über-lucrative Encore for $100 million a year, which seems a fair price to pay for such a phat asset. The buyer is San Diego-based, generically named Realty Income Corp. CEO Matt Maddox and CFO Craig Billings insisted this was a one-off for Wynn, with Billings saying, “In Boston, we were able to achieve both an attractive cost of capital and that asset is based on the stability of revenues in the regional markets and the much lighter CapEx burden relative to say Las Vegas made it a logical financing source for us, which is really what it was.” The nearly $2 billion will be sunk mostly into the United Arab Emirates, where Wynn plans a casino-based destination resort.

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Posted in AGA, Atlantic City, Australia, Bally, Barstool Sports, BetMGM, Caesars Entertainment, Crown Resorts, Dining, DraftKings, Dubai, Economy, FanDuel, FoxBet, Golden Nugget, Hard Rock International, Internet gambling, James Packer, Las Vegas Sands, Macau, Marketing, Massachusetts, Mattress Mack, MGM Resorts International, Michigan, Mohegan Sun, New Jersey, New York, Penn National, PointsBet, Problem gambling, Rush Street Gaming, South Korea, Sports, Sports betting, Taxes, Tennessee, Texas, The Strip, Wall Street, Wynn Resorts | Comments Off on Wynn steals its own thunder; Atlantic City hits a downer

MGM boffo; Establishment freaks out over sports betting

Posted on February 14, 2022 by David McKee

“Viva Las Vegas” was the headline on Credit Suisse analyst Ben Chaiken‘s recap of 4Q21 earnings from MGM Resorts International. Wall Street expected $2.8 billion in revenue and $705 million in cash flow. MGM delivered $3.1 billion and $821 million, respectively. With Aria and Circus Circus backed out of the picture, revenue was up 4% and cash flow shot up 36%. “It sounds like trends in Vegas are recovering again following some Omicron related weakness in January, particularly in the group business,” wrote Chaiken, adding that management saw positive trends building toward the Grammy Awards (at the Green Monster) and NFL draft. Regional casinos performed as expected, delivering $309 million worth of cash flow. BetMGM was projected to generate $1.3 billion in net revenue this year, as it expands to Illinois (March) and Ontario (April).

Making the best of a bad situation in Macao, MGM brass noted that Chinese New Year visitation was up 30% over last year and mass-market play was solid, with MGM’s Macanese market share hitting an all-time high of 14%. Little was said about Japan, but Chaiken observed that the lion had $9 billion “in dry powder” that he expected to go into BetMGM and New York City (“potential high ROI projects”). BetMGM lost $211 million last year and will not be ROI-positive until 2023.

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Posted in BetMGM, Caesars Entertainment, Canada, Conventions, Cosmopolitan, DFS, Donald Trump, DraftKings, Election, Entertainment, Florida, Hard Rock International, Hawaii, Health, Illinois, Japan, Las Vegas Sands, Lotteries, Macau, Marketing, Mattress Mack, MGM Resorts International, Nevada, New York, Problem gambling, Seminole Tribe, Sports, Sports betting, Station Casinos, Steve Wynn, Taxes, Technology, The Strip, Wall Street, Wynn Resorts | 3 Comments