DraftKings, MGM play chicken, MGM wins; Highway robbery in N.Y.

Posted on October 26, 2021 by David McKee

As we’ve written elsewhere, this was supposed to be The Year of Sports Betting … before the Covid-19 Delta variant reared its ugly head (and that was before Coronavirus knocked us out of Global Gaming Expo). But sports betting could still grab the prize, even if sometimes for the wrong reasons.

Maybe this isn’t the wrong reason but today’s top story is that, faced with potential litigation from MGM Resorts International, among other issues, DraftKings has spiked its $22 billion takeover offer for Entain, half owner of BetMGM. “We are not surprised by this outcome, because we viewed this deal as just too complicated to close from the start given … the sizable amount of equity that would have been used by DKNG in a ~$22B deal with 78% of this in newly issued equity,” writes JP Morgan analyst Joseph Greff, predicting that DraftKings stock would react positively to this sudden onset of sanity from CEO Jason Robins. The proposed buyout had been a drag on share prices.

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Posted in Alaska, Bally, DraftKings, Economy, Georgia, Illinois, Indiana, Las Vegas Sands, Louisiana, MGM Resorts International, New York, Politics, Slot routes, Sports, Sports betting, Steve Wynn, Taxes, The Strip, Tribal, Wall Street | 1 Comment

Ida dampens Louisiana’s day; NFL tackles degenerate gambling

Posted on October 22, 2021 by David McKee

September gaming revenues in Louisiana were expected to be diminished by Hurricane Ida and they certainly were, down 23% on a same-store basis. New Orleans had the worst time of it (-48%), Baton Rouge the easiest (-5%). All comparisons are to 2019 numbers. In the Crescent City, Harrah’s New Orleans had a terrible month, grossing only $8 million (-66%) and almost as low as second-place Boomtown New Orleans (just under $8 million, -22%). Fair Grounds racino barely registered with $2 million (-47%), falling behind Amelia Belle ($3 million, -25.5%), while Boyd Gaming‘s other area property, Treasure Chest, grossed $6 million, down 39%. Lake Charles casinos didn’t suffer so spectacularly but they weren’t turning cartwheels either. L’Auberge du Lac took top honors for the month, off only—and amazingly—5% with a gross of $26.5 million, comfortably ahead of Golden Nugget‘s $22.5 million (-23.5%). Dover Downs brought in $12 million, a 21% decline.

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Posted in BetMGM, Boyd Gaming, Caesars Entertainment, Churchill Downs, CQ Holdings, Election, Full House Resorts, Golden Nugget, Illinois, International, Louisiana, Marketing, Peninsula Pacific, Penn National, Problem gambling, Sports betting, Virginia | 4 Comments

Sands: From bad to worse; Musk subway system approved for Vegas

Posted on October 21, 2021 by David McKee

Wall Street analysts were frankly underwhelmed by Las Vegas Sands‘ third quarter. Now that the company is wholly reliant upon the afflicted Macao and Singapore markets that’s hardly surprising. JP Morgan analyst Joseph Greff was pretty blunt, calling Macanese cash flow “barely positive in September,” swinging from a negative August, while characterizing Marina Bay Sands as a “locals” casino these days. (Ouch!) At least Singapore shows signs of easing up on international travel. “In terms of when travel mobility between Mainland China and Macau eases, there is no visibility on when this occurs, given China’s seemingly zero COVID-19 case tolerance; our best sense is that the earliest this takes place is sometime after the Beijing Olympics in February.” It does not help that the Macanese vaccination rate is an unimpressive 50%. At least there were no signs of new regulations upon Macao’s casinos, which is some comfort.

Investment in digital gaming “will likely be small” at least until Pacific Rim cash flow improves. Ditto share repurchases. Sands has $5.6 billion worth of powder that it’s keeping dry. The future, as Greff sees it, is one of sequential improvements “but not a heroic one.” That means mass-market gaming reaching only 60% of 2019 levels next year and VIP play an anemic 35%. By 2023, mass play should be back to 95% of normal but VIPs will still be lagging at half their pre-pandemic level, further validation of Sands’ mass-market strategy.

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Posted in Atlantic City, Bally, China, Cordish Co., Downtown, Economy, Election, Entertainment, Golden Nugget, Hard Rock International, Health, Illinois, Internet gambling, Las Vegas Sands, Macau, Marketing, Maryland, MGM Resorts International, Pennsylvania, Regulation, Singapore, Sports betting, Station Casinos, Technology, The Strip, Transportation, Tribal, Wall Street | Comments Off on Sands: From bad to worse; Musk subway system approved for Vegas

Pennsylvania rebounds; Mega-jottings

Posted on October 20, 2021 by David McKee

After grappling with the effects of gaming saturation for several months, Pennsylvania flexed its muscles in September, up 9% from 2019. The gross was $283 million. On a same-store basis (i.e., discounting the effects of new casinos), the Keystone State was 4% off the 2019 pace. Slot revenues of $199 million were 6% down but table game revenues grew 3%. Most casinos were revenue-negative for the month, some severely so. Pacesetter was Mohegan Sun at Pocono Downs, up 8% to $19 million. Parx Casino never seems to have a bad month, climbing 4% to a state-leading $51.5 million. Wind Creek Bethlehem grew 3% to $42 million. Aside from Parx, the Philadelphia market was a dog-eat-dog affair. Rivers Philadelphia (above) continues to lose market share (-19%) to Philadelphia Live but clings narrowly to second place, $19 million to $18 million. (Fears that Live would be a category killer appear overblown.) Harrah’s Philadelphia plunged 25.5% to $15 million while Valley Forge Resort Casino was down but 2% to $11 million.

Across the state, Rivers Pittsburgh was flat at $31 million and Hollywood Casino at The Meadows slipped 2.5% to $17 million, while novel Live Pittsburgh grossed $9 million, obviously generating some new business. Presque Isle Downs dipped 4% to $10 million, Mount Airy was flat at $15.5 million and Hollywood Penn National stumbled 15.5% to $16 million. Hollywood Casino York debuted with $7 million and Lady Luck Nemacolin was down 25% to $2 million.

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Posted in Arizona, Barstool Sports, BetMGM, Boyd Gaming, Caesars Entertainment, California, Churchill Downs, Cordish Co., Culinary Union, DraftKings, Drugs, FanDuel, Florida, FoxBet, Genting, Greenwood Racing, Internet gambling, Law enforcement, Lotteries, MGM Resorts International, Missouri, Mohegan Sun, New Jersey, Penn National, Pennsylvania, Regulation, Resorts World LV, Rush Street Gaming, Scientific Games, Seminole Tribe, Singapore, Sports betting, Station Casinos, Taxes, Tribal | 1 Comment

Atlantic City: Boardwalk boffo, sports betting bigger still; DeSantis wins

Posted on October 19, 2021 by David McKee

September was a breakout month for Atlantic City casinos, which surged 11% over 2019 to $248.5 million. Slot win was 14% higher on 13% more coin-in and table games garnered 4% more on 4% greater wagering, so luck was with the house. Traditional market leader Borgata didn’t fare quite as well, up 5% to $60 million on 3% less table win (despite very high hold and due to 20% less wagering). Borgata slots made up the difference, winning 11% more on 7% higher coin-in. The Caesars Entertainment threesome was 4% richer, with table win +6% (on 7% greater wagering) and slots up 6% despite only 4% more coin-in. Harrah’s Resort was out in front with $27.5 million (+4%), followed by Tropicana Atlantic City‘s $24.5 million (-4.5%), then Caesars Atlantic City‘s $22 million, +14%.

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Posted in Atlantic City, Bally, Barstool Sports, BetMGM, Caesars Entertainment, Culinary Union, DraftKings, FanDuel, Florida, Genting, Golden Nugget, Hard Rock International, Health, Illitch Family, Internet gambling, Marketing, MGM Resorts International, Mohegan Sun, New Jersey, New York, Ocean Resort, Philippines, PointsBet, Real Estate, Seminole Tribe, Sports, Sports betting, Tamares Group, Taxes, Texas, Tribal, Wall Street | 2 Comments

Biden wades into Florida swamp; New eras at Palms, Ocean

Posted on October 18, 2021 by David McKee

Intentionally or not, President Joe Biden (D) has done Florida Gov. Ron DeSantis (R) a solid. He wants the federal judiciary to dismiss litigation that would invalidate DeSantis’ controversial compact with the Seminole Tribe. As amusing as the spectacle of Biden and DeSantis in bed together is, the motive may have more to do with launching a preemptive strike in defense of what is a very shaky Department of the Interior case for tribal online sports betting. The Biden administration’s rather daffy interpretation of IGRA (or rather, supine acceptance of the Florida Legislature’s daffy translation) would extend “tribal lands” infinitely into cyberspace, at least within state boundaries. Just imagine the effect if the same logic is applied to tribal OSB in California in a year’s time.

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Posted in Aristocrat, Atlantic City, Australia, Baseball, Boyd Gaming, Caesars Entertainment, Connecticut, Economy, Environment, Florida, Full House Resorts, Hard Rock International, Health, Illinois, Illitch Family, Lake Tahoe, Las Vegas Sands, LVCVA, Marketing, MGM Resorts International, Money laundering, Nevada, North Las Vegas, Ocean Resort, Palms, Regulation, Reno, San Manuel Band of Mission Indians, Seminole Tribe, Sports betting, Star Entertainment, Station Casinos, Technology, The Strip, Tribal, Wynn Resorts | Comments Off on Biden wades into Florida swamp; New eras at Palms, Ocean

Encore dominates Massachusetts; Penn touted; Fontainebleau jilted

Posted on October 15, 2021 by David McKee

Gaming revenues in Massachusetts were up 10% from September 2019, reaching $89 million. The lion’s share (65%) went to Encore Boston Harbor, leaping 17.5% to $57.5 million—$7 million more than Deutsche Bank analyst Carlo Santarelli expected. (Encore also disclosed some of its secret formulae for success today.) It won $1.9 million a day, to put that in perspective, $31.5 million from slots and $26 million from tables. To the south, Plainridge Park was in line with expectations, grossing $12 million for a 4% gain. MGM Springfield, however, continues to struggle for an identity, down 8% from 2019 and grossing $19.5 million. Slot play was solid, up 6%, but the casino took a whupping at the tables, plunging 48%. Table play is traditionally this property’s weak link and you wonder how much longer MGM can afford it.

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Posted in Animals, Barstool Sports, BetMGM, Caesars Entertainment, Detroit, DraftKings, Economy, Entertainment, FanDuel, Fontainebleau, FoxBet, Golden Nugget, Health, Internet gambling, Lake Tahoe, Marketing, Massachusetts, MGM Resorts International, Michigan, Mohegan Sun, Ocean Resort, Penn National, Pennsylvania, Rush Street Gaming, Singapore, Sports, Sports betting, Steven Witkoff, The Strip, TV, Wall Street, Wynn Resorts | 1 Comment

Indiana wins big, Missouri too; Pennsylvania guv blows smoke

Posted on October 13, 2021 by David McKee

While the American economy overall may be a disappointment for some, Big Gaming has nothing of which to complain. Indiana is coming off another bully month, up 16% from 2019, for an overall gross of $201 million, driven in no small part by new Hard Rock Gary. It pulled in $29.5 million. Not to be outdone, Horseshoe Hammond won $33 million, albeit 4% off its 2019 pace. Ameristar East Chicago gained 24% but remained a solid third with $21 million. Blue Chip slipped 7.5% to $12 million. Elsewhere the numbers were good for almost everyone, although “everyone” wouldn’t include French Lick Resort, going down 15% to $6.5 million. Rising Star also set, -10% to $4 million.

All other casinos and racinos were revenue-positive, such as Indiana Grand, up 13% to $23.5 million, while Hoosier Downs cantered +17% to $18.5 million. Caesars Southern Indiana, now under Cherokee management, didn’t miss a step either, up 16% to $19.5 million. Tropicana Evansville was remotely in this league, with $13 million, an 11.5% gain, and although Hollywood Lawrenceburg only budged +1.5% that was good enough for $13.5 million. Belterra Resort nudged +3.5% to $8 million, rounding out the southern tier.

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Posted in Bally, Barstool Sports, BetMGM, Boyd Gaming, Caesars Entertainment, Century Casinos, Dining, DraftKings, FanDuel, Full House Resorts, Hard Rock International, Health, Indiana, Internet gambling, MGM Resorts International, Missouri, Movies, Nevada, Penn National, Politics, Sports, Sports betting, Technology, Tribal | 3 Comments

Disaster at Ocean; Ready when you are, CB; Gruden gone

Posted on October 12, 2021 by David McKee

In a development that portends nothing but ill for Atlantic City, the CEO of Ocean Casino Resort, Terry Glebocki has resigned. She also leaves the Casino Association of New Jersey rudderless, no doubt to be replaced in both roles by someone safely white and male. No reason was given for Glebocki’s sudden departure, which was disclosed to staff yesterday morning. Frankly, we’d been fearing such news ever since Marian Illitch bought a half-interest in the casino. While Luxor Capital nominally owns the keys to Ocean, Glebocki was their gal and we don’t see them as the ones giving her the shove. The former CFO of Ocean, née Revel, Glebocki had held the top spot for two years, ones in which the casino’s fortunes dramatically reversed, with results that have been getting better and better with each passing month. Now … uncertainty and unease.

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Posted in Architecture, Atlantic City, Australia, China, Cretins, Crown Resorts, Lake Tahoe, Las Vegas Raiders, LVCVA, Money laundering, Ocean Resort, Real Estate, Riviera, Sports, Star Entertainment, Station Casinos | 3 Comments

Massachusetts talks tough; Big improvements seen at Bally’s A.C.

Posted on October 11, 2021 by David McKee

One of the strongest threads running through Global Gaming Expo was the fear of regulatory backlash against over-aggressive gambling marketing (especially with regard to sports betting). Well, Massachusetts doesn’t have sports betting yet but Bay State regulators are already looking askance at casino advertising. After tracking problem gamblers for the last six years, the Massachusetts Gaming Commission isn’t liking what it’s seeing. “Limit gambling advertising and availability, especially in lower socioeconomic neighborhoods, or groups that may be at increased risk of experiencing gambling harms,” was one of the recommendations made to the MGC. This sounds very much like some of the ad curbs that have been put in place in Spain and Great Britain. It wouldn’t be without local precedent, Attorney General Maura Healey having cracked down on DraftKings and FanDuel in the past.

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Posted in AGA, Atlantic City, Bally, Barstool Sports, Caesars Entertainment, DraftKings, FanDuel, G2E, Georgia, Golden Gaming, Golden Nugget, Hard Rock International, Illinois, Japan, Laughlin, Louisiana, Macau, Marketing, Massachusetts, MGM Resorts International, PointsBet, Politics, Problem gambling, Regulation, Rush Street Gaming, Sports betting, The Strip, Tribal, Wall Street | 1 Comment

Dream comes true; Recovery stays strong; DraftKings’ clock cleaned

Posted on October 8, 2021 by David McKee

If they can scrape together $500 million (which shouldn’t be a problem in this investment climate), developers David Daneshforooz and Bill Shopoff have the Clark County Commission‘s blessing to move forward with the Dream casino-hotel. Despite a raft of security concerns that the Las Vegas Review-Journal summarized as “potential illegal drone flying, laser lights, shooting attacks and even bombs hidden in garbage trucks,” commissioners approved it 6-1. The project will have 527 hotel rooms but at present seems to lack a target audience, with Shopoff rather wishfully stating Dream “will find our following” among Las Vegas tourists put off by multi-thousand-room resorts. Dream will be good news for the Pinball Hall of Fame, which will be its next-door neighbor and might be close enough to Allegiant Stadium to give Raider Nation a place to crash.

Shopoff and Daneshforooz will spend an extra $10 million to allay the worries of the TSA and a coalition of major airlines, none of whom is clearly on board with the new, improved Dream. The proposed security wall with McCarran International Airport will be reinforced and the hotel tower itself will be moved further away from the airport and closer to Las Vegas Boulevard. A security checkpoint and other deterrents will be added. There won’t be any guest-room balconies anymore, the pool will be ringed with a high fence and the parking garage will be fully enclosed. Oh, and if you break a window, security will automatically be alerted. It may be Fort Dream, but it’s also several reassuring steps in the right direction.

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Posted in Atlantic City, Bally, Boyd Gaming, Caesars Entertainment, Charity, Churchill Downs, Cordish Co., DraftKings, Economy, G2E, Golden Gaming, Hard Rock International, Health, history, Illinois, International, Jack Entertainment, Las Vegas Raiders, Maryland, MGM Resorts International, North Carolina, Ohio, Penn National, San Manuel Band of Mission Indians, Security, Sports betting, Station Casinos, The Strip, Tribal, Wall Street, West Virginia | 1 Comment

G2E, The morning after: Guarded optimism

Posted on October 7, 2021 by David McKee
Photo: Amar Barta

Exhibitors are folding their tents and weary journalists are packing it in as another Global Gaming Expo draws to a close, having kicked off inauspiciously with an anti-vaccine riot by “Covidiots” at The Cosmopolitan of Las Vegas. Looking back on the show, Truist Securities analyst Barry Jonas reported that attendance was less than 50% of previous expos (the absence of the international cohort didn’t help). Still, he saw enthusiasm, particularly from Las Vegas hoteliers, whose rooms and gambling floors were “packed.” Manufacturers had cause for optimism, too, as upward trends in gross gaming revenue gave them hope that casinos would loosen their purse strings and buy new machines next year. Interest in interactive gaming was described as a “feeding frenzy.” Revenue comparisons will get tougher next year, Jonas continued, and labor continues to be an issue (which we note is largely one of management’s own making). Also, promotional spending on sports betting is “unsustainable” and “leading to questions about a shakeout and more consolidation.”

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Posted in AGA, Aristocrat, Bally, Barstool Sports, BetMGM, Caesars Entertainment, Cosmopolitan, Cretins, DraftKings, Economy, Everi, G2E, IGT, Lotteries, Marketing, MGM Resorts International, New Jersey, Penn National, Politics, Scientific Games, Sports betting, Technology, The Strip, Wall Street | 1 Comment

Business comeback fuels Strip; Massachusetts fumbles sports betting

Posted on October 5, 2021 by David McKee

Las Vegas Strip room rates continue to demonstrate sustained strength through October and, get this, midweek traffic is driving the bus. Overall, weekday prices are up 22% versus 17% on weekends. MGM Resorts International is the pace car, +24% midweek and up 10% on the weekend for the Oct. 24-30 period. Caesars Entertainment is up 17% midweek and 24% on weekends, while Wynncore is surging 23% on weekdays but surprisingly off a point on the weekend. Another surprise is that Venelazzo is, compared to 2019, almost flat midweek, up just 2% but recoups that on the weekend, hopping 40%.

Analyst Joseph Greff and his JP Morgan colleagues recently studied the travel industry and were able to confirm that a recovery is underway but were unable to nail down a consensus for when it would leave the launch pad. Greff’s bottom line was “business travel restarts will occur over the next few quarters with a spike in 1Q22.” A plus for hoteliers: Room rates will drift upward after the pandemic. Not so good: Technological changes (as in virtual meetings) are here to stay. Not coincidentally, travel budgets for 2022 will be lower than expected. Resorts World Las Vegas can rejoice in the news that Hilton Hotels “was the clear favorite to gain share post-pandemic, surprising to us given the lopsidedness of the results.”

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Posted in Caesars Entertainment, California, Card rooms, Connecticut, Derek Stevens, Economy, Fontainebleau, Health, IGT, International, Japan, Las Vegas Raiders, Las Vegas Sands, Macau, Massachusetts, MGM Resorts International, Mohegan Sun, Politics, Resorts World LV, Singapore, Sports, Sports betting, Taxes, The Strip, Tribal, Wall Street, Wynn Resorts | 1 Comment

Mega-jottings for the weekend

Posted on October 1, 2021 by David McKee

It didn’t take Blackstone Group long to start spending the ‘mad money’ it got for selling The Cosmopolitan of Las Vegas. It plunked down $305 million for all 15 hotels owned by Condor Hospitality Trust. Dare we suggest that Blackstone got more bang for the buck than did the buyers of the Cosmo? … We’ll have to wait until Nov. 17 to find out who gets the Terre Haute casino license but the early renderings are intriguing. Full House Resorts shows by far the most architectural imagination and flair while low-roller Premier Gaming Group brings up the rear, in more ways than one. All the contenders bring more credibility to the table than did Spectacle Entertainment or shiftless Lucy Luck Gaming … Churchill Downs is getting pretty in-your-face with its Derby City casino (in all but name) in downtown Louisville. Located in a former US Bank (above), it will feature a wraparound video marquee and a plethora of “historical racing” machines. Funding will come at least in part from the $197 million sale of an Illinois racetrack to the Chicago Bears … Awana Spa at Resorts World Las Vegas tops Business Insider‘s list of the 10 best hotel spas in the U.S. and is the only casino-based spa to make the grade. It definitely offers something different: “The spa showcases a theater-inspired heated room with aromatherapy, choreographed music, lighting, and dancing towels, and it’s as avant garde as it is relaxing.” You can keep the avant-garde, we just want the relaxation … Casino de Monte Carlo is back as a must-see spot thanks to upcoming James Bond vehicle No Time to Die. Expressions of interest in the venerable casino are up 910%, although we think 007 would prefer someplace less trammeled … Sports betting went live at Mohegan Sun and Foxwoods Resort Casino a week sooner than anticipated. Retail betting is a ‘go’ but OSB is still a ways off. The Connecticut Lottery will participate via 10 Sportech OTBs and five other locations to be announced.

Quote of the Day: “The time is always ripe to do right.”—Dr. Martin Luther King, Jr.

Posted in Churchill Downs, Connecticut, Cosmopolitan, Foxwoods, Full House Resorts, Illinois, Indiana, Kentucky, Mohegan Sun, Movies, Real Estate, Resorts World LV, Société des Bains de Mer, Spectacle Entertainment, Sports betting | Comments Off on Mega-jottings for the weekend

Strip sizzles in August

Posted on September 30, 2021 by David McKee

Casinos on the Las Vegas Strip grossed $626 million last month, 20% better than August 2019. Statewide, the jump was 22% to $1.65 billion but the real overachievers were locals casinos, leaping 41% (to $250 million) with a little help from end-of-July slot revenues that were literally dumped into the early August grosses. Locals also demonstrated more resilience, down just 3% from an epic July, whereas the Strip slipped 21% month/month. Strip slot win was $358 million, a 38% vault on 26% more coin-in (plus tighter hold). Table game win—$259 million—was relatively static, up a point, on 4% higher wagering. Subtract baccarat and it looked better, 7% more win on 12% larger betting. Not that baccarat was bad: Win was down 7% and play was 8% lower, pretty good when you consider the game’s high volatility.

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Posted in Atlantic City, Boulder Strip, Century Casinos, Cretins, Dining, Downtown, G2E, Genting, Hard Rock International, Health, history, Indiana, International, Lake Tahoe, Laughlin, Macau, MGM Resorts International, Missouri, North Las Vegas, Palms, Reno, Sports, Sports betting, Technology, The Strip, Transportation, Tribal, Wendover | 5 Comments

Low blow

Posted on September 29, 2021 by David McKee

The “covidiots” have struck. Yours truly has tested positive for Covid-19, despite having been vaccinated and being generally asymptomatic. This means no trip to Global Gaming Expo, and no collection of the sights and sounds of the Las Vegas Strip. I’ll post what I can from my sickbed but it’s just not the same as being there. Sorry, folks.

Posted in G2E, Health, The Strip | 6 Comments

Cosmo finds pigeons; Scientific sheds sports betting

Posted on September 28, 2021 by David McKee

Reflecting the irrational exuberance surrounding the Las Vegas Strip, it’s a done deal at The Cosmopolitan of Las Vegas. The $3.9 billion resort’s physical assets sold for $4 billion, albeit to a cloudy “group of buyers that includes a Blackstone real estate investment trust.” So there may be some jiggery-pokery at work here. The big news was that MGM Resorts International was unable to resist the dangled bait that was the Cosmo’s operating company, paying a hefty $1.6 billion and change, plus $200 million in annual rent for the plum. Our sources say Cosmo cash flow is about two-thirds of pre-pandemic levels so either MGM CEO Bill Hornbuckle is taking a big gamble or an infusion of M Life is just what the doctor ordered. Regardless, Blackstone is making out like a bandit on a property it bought for $1.7 billion back in 2014, as in $4.1 billion in windfall profits. It also reduces its exposure in its #1 market, Sin City.

Among those paying Blackstone far more than the Cosmo is worth is investment firm Stonepeak, as well as Panda Express founders Andrew and Peggy Cherng. The real winner in all this may Caesars Entertainment CEO Tom Reeg, who can ask several kings’ ransom for whichever Strip asset he chooses to put on the sell block next year (right now it’s looking like Bally’s Las Vegas). Hornbuckle and CFO Jonathan Halkyard claimed the Cosmo would expand MGM’s customer base but it’s hard to believe it isn’t the other way around. Regardless, they had to justify the megabucks they poured into a non-core asset. University of Nevada-Las Vegas boffin Amanda Bellarmino defended the splurge, saying, “The acquisition could help MGM to target younger travelers by acquiring this successful and attractive property.” (Wasn’t that what Park MGM was supposed to do?) Unlike predecessor Deutsche Bank, Blackstone knew how to run the Cosmo and the $500 million capex it put into the old gal clearly paid dividends.

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Posted in Barstool Sports, BetMGM, Caesars Entertainment, China, Churchill Downs, Colorado, Cosmopolitan, Donald Trump, DraftKings, Environment, Florida, Full House Resorts, Hard Rock International, Health, Indiana, Lotteries, Louisiana, Macau, Marketing, MGM Resorts International, Pennsylvania, Real Estate, Rush Street Gaming, Scientific Games, Seminole Tribe, Sports, Sports betting, Tennessee, The Strip, Tourism, Wall Street, Wynn Resorts | Comments Off on Cosmo finds pigeons; Scientific sheds sports betting

Macao fears overdone?; Dispatches from Atlantic City

Posted on September 27, 2021 by David McKee

After a long bout with the flu, we’re back with our usual persiflage. One of the stocks that was on the sickbed last week was Las Vegas Sands, bedridden from proposed new restrictions on Macao casinos. Deutsche Bank analyst Carlo Santarelli put pen to paper to assure readers that the worst is behind us. His analysis “provides us with confidence that downside risk from current levels should be fairly limited, though we acknowledge, valuation in the current environment has seemingly been a function of the latest stock price, plus or minus the interpretation of the next headline, and as such, we don’t deny that the near term could be choppy.” Santarelli outlined several caveats: “we aren’t pretending to know or display confidence around our view of the potential outcomes of the Gaming Law process in Macau … we recognize the situation in Macau is uncertain, though we believe the market has taken a fairly draconian view on the potential outcomes [and] we recognize incremental investment into the Macau centric names at this time of the calendar year and with this level of uncertainty is challenging.” Still, “we believe, the medium to longer-term risk-reward is skewed favorably in LVS at current levels.”

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Posted in Architecture, Bally, Barstool Sports, BetMGM, Caesars Entertainment, Carl Icahn, China, Dining, DraftKings, FanDuel, FoxBet, Golden Nugget, Hard Rock International, Health, Internet gambling, Las Vegas Sands, Macau, MGM Resorts International, Michigan, New Jersey, Palms, PointsBet, Politics, Regulation, Rhode Island, Rush Street Gaming, Sports betting, Station Casinos, Tribal, Virginia, Wall Street | 1 Comment

Atlantic City slumps, as does Pennsylvania; Culinary kabuki theatre

Posted on September 22, 2021 by David McKee

Casinos along the Boardwalk continue to be impervious to the economic recovery that is prevalent in the gaming industry. Atlantic City was down 8% last month compared to 2019, grossing $262.5 million. Sports betting brought in $52 million (+32% from 2020) on handle of $646 million and Internet gambling generated $119 million (+29%). Terrestrial slot revenue was down 5% on 7% lower coin-in and luck was not with the house as regards table games, where revenues tumbled 18% on only 5% less wagering. Borgata got its clock cleaned (-28%), plunging 52% at the tables on 25% less drop, while slot win declined 20% on 23% less handle.

The Caesars Entertainment triumvirate slipped 13%, driven by 15% less win on 7% lower wagering, whilst slots were a bright spot, flat despite 12% less handle. Only Ocean Casino Resort and Hard Rock Atlantic City were revenue-positive for the month, with Hard Rock ($46 million) breathing down Borgata’s neck ($52 million). It gained 19% while Ocean was 38% higher than in 2019, grossing $33 million and grasping third place in the city. Caesars Atlantic City won $25 million, down 20%, Harrah’s Resort snared $28 million, off 10% and Tropicana Atlantic City ceded only 8.5% to finish at $29 million. Resorts Atlantic City did relatively well, just -2.5% down to $18.5 million, Golden Nugget swooned 23% to $16 million and Bally’s Atlantic City stumbled 17.5% to $15.5 million.

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Posted in Atlantic City, Bally, Barstool Sports, BetMGM, Boyd Gaming, Caesars Entertainment, Churchill Downs, Cordish Co., CQ Holdings, Culinary Union, DraftKings, Entertainment, FanDuel, Florida, FoxBet, Golden Nugget, Greenwood Racing, Hard Rock International, International, Internet gambling, Japan, Las Vegas Sands, Louisiana, Macau, Melco Resorts & Entertainment, MGM Resorts International, Mohegan Sun, Ocean Resort, Penn National, Pennsylvania, Rush Street Gaming, Sports, Sports betting, Technology, The Strip, Tribal, Wall Street, Washington State, Wayne F. Newton, William Hill, Wynn Resorts | 1 Comment

Roundball in Sin City?

Posted on September 20, 2021 by David McKee

Editor’s Note: Yours truly is still on vacation, so today you’re in the capable hands of Jeff Leatherock, who ponders Las Vegas‘ emergence as a major league sports town. Enjoy!

I have been a big sports fan for 50 years. I also wound up being a fan of the business of sports for about as long. I read The $4000,000 Quarterback for the first time around 1972. 


The 1960s-70s were a great time to be a young sports fan because new leagues and teams were popping up all the time and everywhere. From 1960-80 there was, on average, more than one new team added each year to the “big four” North American sports  (baseball, football, basketball and hockey). Two football leagues, one basketball league, nine MLB teams. The NHL doubled in one Swell Foop in 1967, going from 6 to 12 teams, and by 1980 had 21 (!) teams. The NFL had endured the best shot of the AFL being formed and had a merger agreement with them by 1967. The attempt by the WFL to get in on the action in the early 70s was an abject failure. The ABA  began their decade long war of attrition with the NBA in 1967 and ultimately staggered into the league with the Nets, Nuggets, Pacers and Spurs “allowed” to buy their way into the NBA.

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Posted in history, Sports betting | 8 Comments