Special Edition: Rumblings from around Big Gaming

Posted on December 4, 2021 by David McKee

Update: The Seminole Tribe has finally, grudgingly stopped taking sports bets, effective yesterday.

At the risk of using the Seminole Tribe as a punching bag, we have to observe that it clearly doesn’t understanding the meaning of the word “no,” especially when it comes to online sports betting. Judge Dabney Friedrich (pictured) ruled that the Seminoles couldn’t have OSB. But they kept taking bets. Then Judge Friedrich nixed their request for a stay. And they kept taking wagers. Now a three-judge panel of the D.C. Circuit Court of Appeals said no, you have to shut it down. And, as far as we know, the Seminoles are still accepting bets. The only commitment Seminole mealy-mouthpiece Gary Bitner would make is “The Seminole Tribe is aware of today’s Appeals Court decision and is carefully considering the steps it will take as a result,” which probably include continued defiance. Which raises the question, if the Seminoles won’t abide by the Indian Gaming Regulatory Act (at least when it’s not to their convenience) why in the bloody blue blazes should anyone else?

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Posted in AGA, Bally, Baseball, Caesars Entertainment, Conventions, Cordish Co., Cosmopolitan, DraftKings, Health, IGT, Law enforcement, Macau, Marketing, MGM Mirage, MGM Resorts International, Penn National, Pennsylvania, Real Estate, Regulation, Scientific Games, Seminole Tribe, Sports betting, The Strip | 2 Comments

Off-topic: Medical update

Posted on December 3, 2021 by David McKee

Forgive me if I get personal for a moment. Yesterday, in a fit of depression brought on by an impending medical procedure, I mentioned “life-threatening surgery.” Well, the surgical procedures for which I was scheduled (which involved removal of a vertebra, and the insertion of many rods and screws) is life-threatening but no longer imminent. After an agonizing risk/benefit analysis, I concluded that the former outweighed the latter and the status quo could be maintained for another six months or year, or maybe more. (The prospect of having my neck largely immobilized for life weighed heavily against the surgery.) From this I have drawn a few lessons …

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Posted in Uncategorized | 11 Comments

Mega-Jottings

Posted on December 2, 2021 by David McKee

Hollywood Morgantown will open Dec. 22, just in time to capture a share of end-of-year business. The $111 million Penn National Gaming facility will feature 750 slots, 30 table games and cashless betting … The Seminole Tribe continues to offer sports betting, in defiance of a federal court order. Clearly the Seminoles think there’s one set of rules for them and another for everybody else. Wrote the plaintiffs’ attorneys, “the compact creates a gambling scheme that violates state and federal laws and makes unwitting bettors into accomplices in the violations of those laws.” Incidentally, aforesaid compact included a severability clause for OSB, a clear indication that the tribe and Florida Gov. Ron DeSantis (R) knew it probably wouldn’t pass muster … Speaking of legal troubles, junket operator Suncity has closed its VIP rooms in Macao (wiping out half the VIP market in town) following the arrest of CEO Alvin Chau for money laundering and other offenses. Casino stocks have been sliding on the Hong Kong bourse, with Wynn Macau down 18% …

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Posted in Election, Florida, Hard Rock International, International, Law enforcement, Macau, Money laundering, North Dakota, Ohio, Penn National, Pennsylvania, Reno, Rush Street Gaming, Seminole Tribe, Sports betting, Station Casinos, Tribal, Virginia, Wynn Resorts | 3 Comments

Strip sizzles, locals thriftier; Penn’s pride and joy

Posted on November 30, 2021 by David McKee

While tourists were more open-handed than ever, cash flow among Las Vegas locals may be drying up, as win/day fell 11% from September. By contrast, the same metric from the Las Vegas Strip was +6%. Further tipping the scales against locals-oriented casinos was the fact that Oct. 31 fell on a Sunday, meaning that two days of weekend slot revenue will be sloughed into November, per ancient Nevada accounting quirk. No need for crying towels: Locals still shed 3% more than in 2019. Slot win was up 2% on 11% more coin-in. That paled in comparison to the Strip, though, up a whopping 30%. Strip slot revenue of $368 million rose 21% on 26% more coin-in (and lower hold) while non-baccarat table win was 26% higher on 49% greater wagering. But the number that gladdened casino executives’ hearts the most was the amazing, 63% rise in baccarat win ($91 million)—even before international players have returned in earnest—despite 13% less wagering. Overall, Strip casinos won $702 million.

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Posted in Barstool Sports, Boulder Strip, California, Cretins, Downtown, Economy, Lake Tahoe, Laughlin, Nevada, New York, North Las Vegas, Penn National, Reno, Sports betting, The Strip, Tourism, Transportation, Wendover | 1 Comment

Seminoles to feds: “F*** off”; Strip casinos drive down employment

Posted on November 24, 2021 by David McKee

In a big “up yours” to the federal judiciary, the Seminole Tribe—after momentarily pausing—has resumed taking sports bets and is effectively daring the courts to do something about it. If that weren’t nervy enough, the Seminoles have asked Judge Dabney Friedrich for a stay of her own order shutting down the new compact with the state of Florida. Tribal government has some strange ideas about how to make friends and influence people. We don’t think Judge Friedrich is going to be amused by this one-finger salute from the Seminoles and it makes any plea for clemency that much more implausible. By showing themselves to be bad actors, how do the Seminoles argue before the court that they deserve a reprieve while the judge’s ruling is appealed, a process that is expected to take six months and is not expected to be successful? It all comes down to buying time for more sports betting, period, but Chairman Marcellus W. Osceola has a funny way of going about it.

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Posted in Boyd Gaming, Economy, Florida, history, Seminole Tribe, Sexual misconduct, Sports betting, Station Casinos, Steve Wynn, The Strip, Wall Street, Wynn Resorts | 2 Comments

Seminole compact nixed: Biden, DeSantis, Seminoles all lose

Posted on November 23, 2021 by David McKee

Floridians, we hope you enjoyed sports betting for all of the three weeks in which it was legal in the Sunshine State. Why? Because last night a federal judge struck down the Seminole Tribe‘s new compact with Gov. Ron DeSantis (R). Basically, Interior Secretary Deb Haaland screwed up and approved a compact that violates the terms of the Indian Gaming Regulatory Act. (Still unresolved is the state constitutionality of the compact, which is dubious at best.) District Court Judge Dabney Friedrich threw out the Biden administration’s daffy interpretation that gambling in cyberspace is happening on “tribal lands” so long as that’s where the servers are located, a line of reasoning the court dismissed as “fiction.”

Wrote Friedrich, “over a dozen provisions in IGRA regulate gaming on ‘Indian lands,’ and none regulate gaming in another location. Indeed, if there were any doubt on the issue, the Supreme Court has emphasized that ‘[e]verything—literally everything—in IGRA affords tools … to regulate gaming on Indian lands, and nowhere else.’” Chastising Haaland, the judge continued, “The Secretary must reject compacts that violate IGRA’s terms.” As gaming law expert Daniel Wallach said, “The avalanche of legal authority was on the side of invalidating online sports betting. She recognized the obvious—that a customer located in Jacksonville or Key West or Pensacola is not on Indian land when they initiate the wager.” He added that “the state of Florida and the Seminole Tribe were operating in a state of delusion.” (You can place tribal sports bets in Michigan, Arizona and Connecticut … but only if you’re on Native American land at the time.)

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Posted in Arizona, Australia, Chicago, Connecticut, Crown Resorts, DraftKings, Election, FanDuel, Florida, Hard Rock International, Law enforcement, Massachusetts, MGM Resorts International, Michigan, Nevada, New York, Penn National, Politics, Regulation, Rush Street Gaming, Seminole Tribe, Sports, Station Casinos, Taxes, Transportation, Tribal | 1 Comment

Chicago reveals all; Rumblings from Macao; Riot in Vegas

Posted on November 22, 2021 by David McKee
Rivers Chicago at McCormick

The City of Chicago unveiled the applications for its casino license late Friday, effectively burying it at the end of a news cycle, in another triumph for Mayor Lori Lightfoot (D) and her administration. The five submissions “are in line with our vision to develop a world-class experience in Chicago that will drive significant economic growth and employment opportunities for our communities,” said Lightfoot. The pitches break down alphabetically as follows:

Bally’s Corp. #1: To be sited at the Chicago Tribune Publishing Center, “an economic sleeping giant,” this $1.8 billion, two-phase project would include 100 hotel suites, 20,000 square feet of expo space, three restaurants—curated by Paul Kahan and Erick Williams—and rooftop “green space.” The casino would feature 95 table games and 2,700 slots. A “Best of Chicago” theme is planned. In a dig at its rivals, Bally’s wrote, “As our flagship property, Bally’s Chicago has no conflicting interest in the Chicago market. We don’t operate, own or partially own casino properties located elsewhere within the Chicagoland market. Simply put, Bally’s is conflict-free.” Even so, the company noted that it is already licensed in the Prairie State. Bally’s predicts a 20% ROI on the project (and if it doesn’t reach it, won’t build Phase II), which will have 25% Black and Latino ownership. This plan really needs to pencil out economically, as most of the amenities are in the second stage.

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Posted in Architecture, Bally, Barstool Sports, Chicago, China, Cretins, Entertainment, Genting, Golden Gaming, Hard Rock International, Health, IGT, Illinois, Las Vegas Raiders, Macau, Maryland, Mattress Mack, Neil Bluhm, New Jersey, New York, Problem gambling, Regulation, Rush Street Gaming, Sports, Sports betting, Tourism, Transportation | 5 Comments

Big month for MGM in Michigan; Las Vegas, city of stiffs

Posted on November 19, 2021 by David McKee

Cumulative Internet gambling and sports betting revenues racked up $134 million last month, the vast majority going to i-gaming, some $110 million. Sports books essentially gave away the store, with 81% of revenues going right back out the door in promotions (and this was a decrease from September). BetMGM dominated i-gaming with $41.5 million, followed by DraftKings ($20 million), FanDuel ($17.5 million), BetRivers ($7 million), Golden Nugget Online ($5 million) and Barstool Sports ($4.5 million). There are quite a few other operators in the Wolverine State but their grosses rarely add up to beans. As for sports betting, handle was an impressive $463 million but erstwhile favorite son BetMGM was only third with 22% market share, lagging FanDuel (27%) and DraftKings (26%). Fighting for scraps were Barstool (9%) and Caesars Sportsbook (8%), leaving precious little for anybody else.

When the bets were paid off, it was a decisive win for FanDuel, which netted $10 million to BetMGM’s $7.5 million and DraftKings’ $3 million. Caesars was the only other operator to break the $1 million threshold. Among those making little or nothing (and perhaps overdue to reconsider their Michigan presence) were Golden Nugget, BetRivers, Parx, Four Winds and WynnBet.

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Posted in Bally, Barstool Sports, BetMGM, Boyd Gaming, Caesars Entertainment, Churchill Downs, CQ Holdings, DraftKings, Economy, FanDuel, Golden Nugget, Greenwood Racing, Louisiana, Pennsylvania, Rush Street Gaming, Wynn Resorts | Comments Off on Big month for MGM in Michigan; Las Vegas, city of stiffs

Atlantic City still booming; Churchill Downs wins in Terre Haute

Posted on November 18, 2021 by David McKee

It was another bonanza month for the Boardwalk, as casinos grossed $237.5 million in October, 17% above 2019. Slot win was up 22% on 19% more coin-in and tables won 6% on 9% higher wagering and despite lower hold. Borgata wasn’t so lucky at the tables, being down 9% yet 32% greater slot win propelled the megaresort to a 20% higher tally of $62 million, by far the highest in Atlantic City. A distant second was Hard Rock Atlantic City‘s $37.5 million, despite a 53% gain. Ocean Casino Resort accelerated 63.5% to firmly grasp third place with $30 million. The Cerberus that is Caesars Entertainment dipped 2% overall, as table win slipped 6% and slots edged 1% lower. Harrah’s Resort was 1% up, leading the CZR pack with $24 million, followed by $24.5 million, followed by Tropicana Atlantic City (-3.5%) and Caesars Atlantic City (-2.5%) with $21 million each. Resorts Atlantic City made an impressive, 20.5% gain to $14.5 million, while Bally’s Atlantic City grossed $12.5 million but slid 4.5%. That left Golden Nugget, down 3.5% to $14 million.

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Posted in Atlantic City, Bally, Barstool Sports, BetMGM, Caesars Entertainment, Churchill Downs, Cordish Co., DraftKings, FanDuel, FoxBet, Full House Resorts, Golden Nugget, Greenwood Racing, Hard Rock International, Indiana, International, MGM Resorts International, Mohegan Sun, Money laundering, Ocean Resort, Penn National, Pennsylvania, PointsBet, Rush Street Gaming, Sports betting, Tribal, Wall Street | 1 Comment

Atlantic City: Does it pay to improve?; Bicycle Casino’s flat tire

Posted on November 16, 2021 by David McKee

New Jersey giveth, New Jersey taketh away. The priority of the Lege’s lame-duck session will not be ending smoking in Atlantic City casinos but something much nearer and dearer to casino executives’ hearts: Revising the PILOT (Payment In Lieu of Taxes) program. This is the brainchild of outgoing state Senate President Stephen Sweeney (D), prompting one wag to comment, “Perhaps he hopes to get a job at a casino so he can have a third pension.” The big, juicy incentive to get Big Gaming to go along is the exemption of sports betting and i-gaming from PILOT revenue calculations, a big gimme.

The casinos’ compliance will be needed in some cases because their PILOT fees will be going way up, usually if they have been engaged in capex reinvestment. We frown upon this because it creates a fiscal disincentive to improve one’s property (slumlords like Donald Trump, in his Boardwalk days, would have loved it). For instance, Borgata would slide down from $29 million due this year to $23 million in 2025. By contrast, Hard Rock Atlantic City would be walloped with a 100% increase from $8 million to $16 million.

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Posted in Atlantic City, Bally, Caesars Entertainment, California, Card rooms, Golden Nugget, Hard Rock International, Law enforcement, MGM Resorts International, Money laundering, Morris Bailey, New Jersey, Ocean Resort, Taxes | 2 Comments

Encore owns Massachusetts; Online slot players hosed

Posted on November 15, 2021 by David McKee

Massachusetts gaming revenue accelerated to $96 million last month, 23% higher than 2019. Encore Boston Harbor vaulted 37% to $63 million—yes, two-thirds of the statewide gross and well above Deutsche Bank‘s forecast of $55 million. Despite Wynn Resorts‘ dominance, Plainridge Park managed to add 4.5% to its 2019 numbers, grossing $12 million (Deutsche Bank was right on the money with that one). MGM Springfield didn’t exactly struggle but it was only 1% up, winning $21.5 million. Back when the Bay State was initially in play, Wynn sussed out Boston as a real gold mine and has been triumphantly ratified.

American Gaming Systems has been all over the news lately and not in a good way. 15 players are lodging complaints against the online-slot maker. What did they do wrong? Basically, they made the mistake of beating the AGS house. The latter isn’t paying, chalking up player victories to ‘a bug’ in the system, that old saw. This is the kind of thing that gives Internet gambling a black eye and AGS should definitely be investigated further than it has. In one case, player Lisa Piluso won $100,000, was offered $280 and later had that upped to $1,000, presumably AGS’ idea of being george. To us, it doesn’t matter a fig whether the AGS software was corrupted (how very confidence-inspiring) or not. Players expect a game to be on the square and should get one that is.

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Posted in Boyd Gaming, Caesars Entertainment, Churchill Downs, Cretins, Detroit, Economy, FanDuel, Hard Rock International, Illinois, Iowa, Law enforcement, Massachusetts, MGM Resorts International, Nebraska, Neil Bluhm, New Jersey, North Carolina, Peninsula Pacific, Penn National, Pennsylvania, Racinos, Regulation, Sports, Sports betting, Tribal, TV, Virginia, Wall Street, Wynn Resorts | 1 Comment

Wynn spits out SPAC; Penn slammed; Indiana impresses

Posted on November 12, 2021 by David McKee

Headlines are still being made by Wynn Resorts this week. Shockwaves continue to reverberate from CEO Matt Maddox‘s surprise retirement, nearly one year ahead of schedule. His departure comes at a delicate point in negotiations with Macao (or should we say ‘dictations’?), where Maddox has been a key player. Also, it has been revealed that he was thoroughly investigated in 2020 by the board over an anonymously filed allegation of misconduct, phoned in over an employee hotline. Had Maddox failed to divorce himself from the boys-will-be-boys culture of Steve Wynn? We’ll never know and he seems to have been cleared of the charge. But still “It’s all very curious,” as Jefferies analyst David Katz said.

In other news, Wynn Resorts’ retrenchment on the i-gaming and online sports betting front began taking concrete shape. In a curt SEC filing, Wynn let it be known that a merger of Wynn Interactive with special acquisition company Austerlitz I is kaput. “While somewhat surprising, the tea leaves were present in the days leading up to the announcement … and WYNN announced that it was pivoting its strategy in sports betting and iCasino, given the irrational customer acquisition behavior they see taking place in the market,” wrote Deutsche Bank analyst Carlo Santarelli. “WYNN noted that it expected 4Q21 losses from the iGaming segment to be considerable ($103 mm 3Q21 loss), and we imagine, 4Q21 losses will exceed those experienced in the 3Q21, given programming of marketing and the busier NFL season.” Santarelli concluded that termination of the JV “could be construed favorably.” Especially for Craig Billings, CEO of Wynn Interactive, who wouldn’t have much to do were he not moving up to the top job at Wynn.

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Posted in Bally, Barstool Sports, BetMGM, Boyd Gaming, Caesars Entertainment, Cordish Co., DraftKings, Drugs, Entertainment, FanDuel, Fontainebleau, Full House Resorts, Golden Gaming, Hard Rock International, Indiana, International, Internet gambling, Macau, Marketing, New York, Penn National, Pennsylvania, PointsBet, Sports betting, Station Casinos, Tribal, TV, Wall Street, Wynn Resorts | 2 Comments

Wynn drops bombshells; Portnoy’s complaint

Posted on November 10, 2021 by David McKee

Wynn Resorts CEO Matt Maddox is leaving the building, effective Jan. 31. This shockeroo, which inspired a banner headline in the Las Vegas Review-Journal, was trundled out just minutes before the 3Q21 earnings call. Maddox will be succeeded by veteran CFO Craig Billings, who will have the experience and more than enough time for an orderly changeover. Given that former Encore Boston Harbor President Brian Gullbrants is now at the helm of Wynncore, one need not fear that the company will miss a step.

Maddox conceded that he got off to a “rough start” with some, inheriting his job under the cloud of the Steve Wynn sex scandal, “one of the messiest transitions in corporate history.” He didn’t impress us in the early going but proved a steady and proactive leader during the Covid-19 pandemic. Gaming analysts gave rave reviews to both Maddox and Billings, predicting a bright future for Wynn Resorts. As one penned, “barring conspiracy theories around the departure of Mr. Maddox, most notably the implications for the Macau process, of which we think there are virtually none, we expect a smooth transition.”

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Posted in AGA, Arizona, Atlantic City, Bally, Barstool Sports, Boyd Gaming, Caesars Entertainment, China, Diversity, Economy, GLPI, Golden Nugget, Hard Rock International, Health, International, Internet gambling, Macau, Marketing, Massachusetts, MGM Resorts International, Missouri, Movies, New York, Ocean Resort, Oklahoma, Penn National, Politics, Sexual misconduct, Sheldon Adelson, Sports betting, Steve Wynn, The Strip, Tourism, Transportation, Tribal, Wall Street, Wynn Resorts | 1 Comment

New York picks winners, losers; Ohio, even Illinois flex muscles

Posted on November 9, 2021 by David McKee

In hopes of having online sports betting operational in time for the Super Bowl, Empire State gaming regulators announced their picks for the state’s nine OSB license applications late yesterday. Winners were BetMGM (just as Bill Hornbuckle predicted), DraftKings, FanDuel, Caesars Sportsbook, Bally’s, Resorts World, PointsBet, WynnBet and Rush Street Interactive. Each will have to partner with a brick-and-mortar casino and pay 51% of gross gaming revenue in taxes, plus $25 million upfront, making the real winner New York State. Forbes calculates it will see a $493 million windfall by 2025. Losers were led by Barstool Sports, which missed the brass ring, a bitter pill for Penn National Gaming to swallow. Could Barstool’s brash image have been a problem? Others out in the cold are bet365 (which rashly tweeted “I will own New York”), theScore, Fanatics and FoxBet.

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Posted in Bally, Barstool Sports, BetMGM, Boyd Gaming, Caesars Entertainment, Churchill Downs, Cordish Co., Delaware, DFS, DraftKings, Economy, Environment, Failsinos, FanDuel, FoxBet, Foxwoods, Full House Resorts, Genting, Golden Gaming, Hard Rock International, Illinois, International, Jack Entertainment, Lake Tahoe, Maryland, MGM Resorts International, Mississippi, Missouri, Mohegan Sun, New York, Ohio, Penn National, PointsBet, Racinos, Rush Street Gaming, Sports betting, Taxes, Technology, West Virginia, Wynn Resorts | 2 Comments

DraftKings talks big, persuades few; Rancor in Richmond

Posted on November 8, 2021 by David McKee

DraftKings divided analysts with its 3Q21 earnings report. Credit Suisse pundit Ben Chaiken said the company was “moving the ball down the field.” That’s despite revenues of $212 million that well undershot Wall Street‘s expected $238 million, rather like a downfield pass that was picked off for an interception. Chaiken blamed the shortfall on low hold on NFL games and an upswing in marketing costs. DraftKings predicts it will bring in $1.7 billion to $1.9 billion next year, not including money from states that have yet to add sports betting. The Street’s consensus is it will be $1.8 billion inclusive of new markets. Chaiken thinks that DKNG will next try to buy or build a media component, as “the next major theme in sports betting will be the emphasis on sports media, which can be used to more efficiently acquire and retain customers.” If a deal can’t be struck with ESPN, look for a purchase of The Athletic.

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Posted in AGA, Arizona, Baseball, Canada, Delaware, Donald Trump, DraftKings, Election, Golden Nugget, Health, history, Internet gambling, James Packer, Louisiana, Marketing, Maryland, New York, North Carolina, Politics, Sheldon Adelson, Sports, Sports betting, Texas, Tribal, TV, Virginia, Wall Street | Comments Off on DraftKings talks big, persuades few; Rancor in Richmond

MGM to sell Mirage; Caesars disappoints Wall Street

Posted on November 4, 2021 by David McKee

At a time when the north Las Vegas Strip is finally heating up, MGM Resorts International has chosen this moment to put The Mirage on the market. Although it’s 32 years old (224 in dog years), The Mirage should fetch an attractive price—albeit short of the 14X cash flow that Jim Murren used to shop it around at, back in the Great Recession. Best case scenario, MGM disposes of a geographically isolated asset at a handsome markup (look what happened with The Cosmopolitan of Las Vegas). It’s a seller’s market and MGM chose its moment wisely. The only drawback for a potential buyer is that only the operational half of The Mirage is for sale, not the underlying real estate. You’d have to settle for being a Vici Properties tenant.

On the upside, you get a lot of real estate to play with: 77 acres, much of it underdeveloped, according to CEO Bill Hornbuckle. He was in altruistic mood, saying “I’m excited for somebody to come in and make it their marquee property.” As for his own company, “we have enough of Las Vegas … We think there is an opportune time, and we think this might be it to sell an asset in Las Vegas. So it, for us, became the obvious one.” No potential buyer or buyers were tipped, although Hornbuckle’s remarks implied he’s looking for someone without a Strip presence. We’re loath to prognosticate. It would be sentimentally pleasing to see Boyd Gaming back on the Strip but …

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Posted in BetMGM, Boyd Gaming, Conventions, Cosmopolitan, Economy, Election, Hard Rock International, Health, Internet gambling, Jim Murren, Lake Tahoe, Louisiana, Macau, Marketing, MGM Resorts International, New Jersey, New York, Palms, Penn National, Phil Ruffin, Planet Hollywood, San Manuel Band of Mission Indians, Sports betting, The Strip, Vici Properties, Wall Street | 2 Comments

Urban One loses; Station thinks big; NFL gets into the slot biz

Posted on November 3, 2021 by David McKee

Richmond voters narrowly chose to cut off their nose to spite their face, voting 51.5% against the Urban One casino proposal. Since casinos were approved by at least 65% in four other Virginia cities in 2020, the resounding question is “Why?” True, an endorsement of Urban One by unpopular gubernatorial candidate Terry McAuliffe (D) probably didn’t help. His victorious opponent, casino investor Glenn Youngkin (R) kept mum on the issue. Although adversaries of Urban One were outspent 10-1, they had the benefit of a wall of NIMBY sentiment at their backs. They were also accused of stoking racial animus and with Urban One polling poorly in predominantly white areas that strategy, if deliberate, may have worked. As of this morning, the casino industry—at least in the private sector—remains an all-white-ownership province.

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Posted in Aristocrat, Caesars Entertainment, California, Dining, DraftKings, Election, Florida, Hard Rock International, Health, International, Iowa, Las Vegas Raiders, Las Vegas Sands, Law enforcement, MGM Resorts International, Michael Gaughan, Mississippi, New Hampshire, New Jersey, Ohio, Palms, Politics, Real Estate, Resorts World LV, Seminole Tribe, Sports, Sports betting, Station Casinos, Taxes, Technology, Transportation, Tribal, Virginia, Wall Street, Washington State | 6 Comments

Chicago: Then there were five (?); LV Sands huddles with NY Mets

Posted on November 1, 2021 by David McKee

Or is it three? In the end, Chicago Mayor Lori Lightfoot (D) drew one heavyweight contender for the Windy City casino and a pair of middleweights. Two of the applicants made parlay bids, so the city could crow that it had “five” bidders for the high-tax concession. But despite Lightfoot’s stated aspiration of a Vegas-quality casino, none of the finalists has a Las Vegas return address. Obviously experiencing remorse for having sold its majority stake in Rivers Casino Des Plaines, politically connected Rush Street Gaming is back with two proposals: Rivers Chicago at McCormick and Rivers 78 Gaming. Also dibbing two sites was Bally’s Corp., while the lone heavyweight, Hard Rock International, would manage HR Chicago. None of the no-name bidders turned in paperwork, when it once looked as though they would be all Lightfoot had left.

The billion-dollar resort has yet to be sited, which will be an important factor in the selection processs. The winner also gets slot routes at the city’s two major airports. The casino will need to be a success right out of the chute, given its $160 million-$200 million annual tax liability. Two of the contenders, Rush Street and Bally, are eyeing McCormick Place, which would provide synergy with conventions and expos. Rush Street’s fallback position is a former railroad yard (blah!) in south Chicago, while Bally’s also covets the former Chicago Tribune printing plant. “It would become our flagship.” Bally’s Chairman Soo Kim said of Chi-town casino. On the other side of the coin is non-bidder Bill Hornbuckle, CEO of MGM Resorts International, who maintains, “It’s a struggle how it all adds up.”

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Posted in Bally, Barstool Sports, Baseball, BetMGM, Caesars Entertainment, Churchill Downs, Cretins, DraftKings, Election, FanDuel, Florida, Genting, Hard Rock International, Illinois, Indiana, Las Vegas Sands, Law enforcement, Louisiana, MGM Resorts International, Neil Bluhm, New Hampshire, New York, Peninsula Pacific, Penn National, Pennsylvania, Rush Street Gaming, Sheldon Adelson, Sports betting, Tennessee, Texas, Virginia, Wynn Resorts | 1 Comment

Rockin’ hard; Miller gives anti-smokers hope; Packer’s wrist slapped

Posted on October 29, 2021 by David McKee

Hard Rock International CEO Jim Allen (left) is bullish on the New York City market, if not downright aggressive. In maybe the highlight to come out of the East Coast Gaming Congress, Allen asserted his company’s interest in a New York City casino—and also one at the Meadowlands, only nine miles away. Granted, breaking Atlantic City‘s casino monopoly (from which Hard Rock currently benefits) would take a major upheaval in the New Jersey Lege, as well as a constitutional amendment, but we’re not counting Allen out. This double-whammy strategy with respect to NYC (whose casino licenses will be issued in 2023) would normally have us saying the company has drunk its bathwater … but there’s no better brand in gaming nowadays than Hard Rock, so if anybody could pull this parlay off, they could. Also, if any brand belongs in or near Manhattan, Hard Rock has the vibe for it.

“We’re interested in both markets, and if God is good enough to allow us to operate in both, we would be happy to do so,” Allen told reporter Wayne Parry, no doubt cognizant of the fact that Garden State voters nixed a Meadowlands casino in 2016, so he’s bucking the odds. He added he was “100%” certain that New York City could support three casinos, pointing out that Atlantic City is carrying nine. “It may be possible that a market as robust as metro New York City could support two properties,” said UNLV gaming supremo David G. Schwartz, waxing more skeptical than Allen. Actually, the Big Apple does support two casinos, if VLT-only Resorts World New York and MGM Empire City Yonkers count. (We agree with Allen, presuming that the third casino is more attractive than a converted racetrack.)

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Posted in AGA, Animals, Atlantic City, Australia, Caesars Entertainment, China, Crown Resorts, Election, Genting, Golden Gaming, Greenwood Racing, Hard Rock International, Health, Illinois, Indiana, James Packer, Kentucky, Laughlin, Law enforcement, Lotteries, Maryland, MGM Resorts International, Money laundering, Nevada, New Jersey, New York, Pahrump, Pennsylvania, Politics, Regulation, Scientific Games, Slot routes, Sports betting, Taxes, The Crown 18, Tribal, Wall Street | 1 Comment

Baccarat cools Las Vegas a bit; Boyd sets records; Reno bans whips

Posted on October 27, 2021 by David McKee

Stimulus cash may be petering out somewhat and international tourism has yet to open the floodgates, so September found Nevada on something of a cusp between the supercharged recovery of the summer and the hoped-for travel rebound in 4Q21. Still, Las Vegas Strip revenues were up 10% to $640.5 million and locals-driven receipts were 13% above 2019 levels. Statewide, gambling win tallied 9% higher than two years ago, hitting the wonted $1.1 billion level. As Deutsche Bank analyst Carlo Santarelli puts it, “the accounting calendar was clean in September of 2021,” meaning there was no held-over slot revenue from August. With numbers like these it’s little wonder that gaming executives are waxing optimistic for the long haul. Strip slot players lost $355 million, 16% more on 16% higher coin-in and flat hold. Baccarat wagering was down only 5% but luck wasn’t with the house, as win fell 24% despite higher-than-normal hold. Non-baccarat table games fared much better, up 20% on 12% more wagering. If it weren’t for baccarat, Strip revenues would have been 18% above 2019’s apogee.

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Posted in Atlantic City, Boulder Strip, Boyd Gaming, California, Conventions, Culinary Union, Downtown, FanDuel, Hawaii, Health, Internet gambling, Lake Tahoe, Laughlin, Law enforcement, Louisiana, Marketing, Nevada, New Jersey, North Las Vegas, Pennsylvania, PointsBet, Politics, Reno, Sports betting, The Strip, Tribal, TV, Wall Street | Comments Off on Baccarat cools Las Vegas a bit; Boyd sets records; Reno bans whips