Illinois springs to life while Ohio erupts; Mohegan Sun jilted twice over

Posted on August 12, 2021 by David McKee

Stop the presses! Illinois casinos actually outperformed 2019 last month by 4%. That’s downright miraculous. They grossed $120 million, led by Rivers Casino Des Plaines‘ $47.5 million, a 28% vault. Harrah’s Joliet was a distant second with $14.5 million (-1%), closely followed by Grand Victoria‘s $14 million (+10%). The prosperity was confined to the northern tier, with Hollywood Aurora up a point to $10 million and Empress Joliet tumbling 20% to $8.5 million. Mid-state, Par-A-Dice slipped 8.5% to $6 million, while Bally’s Corp. will have it’s hands full with Jumer’s Rock Island, which plummeted 33% to $4 million. (Bally’s execs implied on the latest earnings call that they bought it mainly to get in on the sports betting market.) In the southern tier, Harrah’s Metropolis slid 19% to $5.5 million, Argosy Belle was down 8% to $3.5 million and DraftKings Casino Queen declined 11.5% to $7 million. Having two extra weekend days obviously did no harm to the gainers in the marketplace but the losers would surely have been much worse off—though how much worse Jumer’s could get is open to speculation. It used to be one of the best performers in the Land of Lincoln but that was a long time ago.

Incidentally, we now have access to complete numbers from Ohio. To wit, it was a real horserace. Slots-only MGM Northfield Park led with $25 million of a statewide tally of $211 million, up 17% from 2019. Close behind was Hollywood Columbus with $24 million, plus 27%. Jack Cleveland also gave MGM a run for the money with $23.5 million, leaping 38%. Other top grossers were Hollywood Toledo ($21.5 million, +27%), Hard Rock Cincinnati ($21.5 million, +23%), Scioto Downs ($21 million, +34%) and Miami Valley Gaming ($19.5 million, +31%). Other racinos were all revenue-positive: Jack Thistledown ($18 million, +49%), Belterra Park ($9 million, +22%), Hollywood Dayton ($13.5 million, +38%) and Hollywood Mahoning Valley ($15 million, +37%). No, those percentage increases are not typos and we have not been drinking.

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Posted in AGA, Arizona, Arkansas, Bally, BetMGM, Boulder Strip, Boyd Gaming, Caesars Entertainment, Century Casinos, Churchill Downs, DraftKings, G2E, Genting, Greenwood Racing, Hard Rock International, Health, Illinois, Internet gambling, Jack Entertainment, Japan, MGM Resorts International, Michigan, Missouri, Mohegan Sun, New Jersey, New York, Ohio, Penn National, Sports betting, Steve Wynn, The Rio, The Strip, Tribal, Wynn Resorts | 4 Comments

Open season in New York; Ohio, Missouri boom; Scientific baffles

Posted on August 10, 2021 by David McKee
Hero to zero in less than a year.

Rather than face (well-deserved) impeachment, New York State Gov. Andrew Cuomo (D) resigned in disgrace today. Which happened to coincide with the disclosure of the companies which have applied to be online sports betting provider(s) for the Empire State. Cuomo’s not-a-moment-t00-soon departure means that the contenders can hope not to be shaken down or chosen on the basis of how usuriously they are willing to be taxed (isn’t that tantamount to bribe solicitation, guv?). And Cuomo’s obvious favorite, DraftKings, now faces a level playing field. At least that is our hope. The finalists will be Bet365, Penn National Gaming/Kambi, FanDuel/BetMGM/DraftKings, TSG/FoxBet, TheScore and a jumbled combination of Kambi/Caesars Entertainment/Resorts World/PointsBet/WynnBet/Rush Street Interactive. DraftKings still has a very good chance of getting one of the plums, if for no other than reason than it’s riding the coattails of MGM and favorite son Empire City Yonkers. The second Kambi combination platter also has an edge since it contains two other New York brick-and-mortar operators, Rush Street and Resorts World.

“We expect to learn of the winning consortiums, and we believe two will be chosen, in the next 4-6 weeks. Based on the criteria put forth in the RFA, we believe there are obvious front runners from the list, and those for whom the prospects appear dim, based on their track records relative to the RFA selection criteria. That said, it’s New York and anything can happen,” wrote Carlo Santarelli of Deutsche Bank. Yes, anything can happen. Just ask Andrew Cuomo.

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Posted in Atlantic City, BetMGM, Boyd Gaming, Caesars Entertainment, DraftKings, FanDuel, Florida, FoxBet, Genting, Golden Gaming, Golden Nugget, Hard Rock International, Horseracing, Internet gambling, Las Vegas Sands, Lotteries, MGM Resorts International, Missouri, New York, Ocean Resort, Ohio, Penn National, Pennsylvania, PointsBet, Politics, Rush Street Gaming, Scientific Games, Seminole Tribe, Sexual misconduct, Slot routes, Sports betting, Wall Street, William Hill, Wynn Resorts | Comments Off on Open season in New York; Ohio, Missouri boom; Scientific baffles

Florida compact sneaks into effect; DraftKings buys out Fertitta

Posted on August 9, 2021 by David McKee

Secretary of the Interior Deb Haaland has jumped the shark. Her department has wisely-washily neither confirmed nor denied the controversial Seminole Tribe compact with the state of Florida, one that gives the Seminoles control over sports betting in the state. As a result, it goes into effect Oct. 15. What this means, practically speaking, is that we could drive across the Florida state line, park at the nearest rest stop, place a mobile wager from the restroom and have it be classified as ‘tribal gaming’ because all such bets are routed through servers on Seminole sovereign land. Yes, a toilet stall on the interstate could qualify as a ‘tribal gaming’ location under the terms of the compact. Haaland must have known this would be a hot potato, as the Interior Department snuck the decision out under cover of darkness (“quietly and passively,” as one newspaper put it). Or rather, they dumped it on the proverbial curb on Friday, the end of the news cycle when nobody would be looking. A court challenge is inevitable and, we hope, successful.

Deutsche Bank analyst Carlo Santarelli showed some skepticism of his own. He wrote, “While the initiative is likely to be legally challenged by numerous parties, and while [DraftKings] and FanDuel have partnered to get a petition signed to get on the November 2022 ballot, the way things currently stand, online mobile wagering in Florida is a monopoly, something we believed was likely to be the case, despite optimism around the skin partners. We believe that optimism should have faded once the DKNG/FanDuel effort to seek a different path got underway, as it essentially implied that both operators recognized that the hub and spoke OSB model via the Seminole Tribe wouldn’t work.”

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Posted in Arizona, BetMGM, California, Culinary Union, DraftKings, FanDuel, Florida, Golden Nugget, Health, Internet gambling, Marketing, MGM Resorts International, New Jersey, New York, Penn National, Pennsylvania, Politics, Regulation, Seminole Tribe, Sports, Sports betting, Taxes, Texas, The Strip, Tilman Fertitta, Tribal, Wall Street, Wynn Resorts | 1 Comment

Maryland goes, goes, goes; Penn flips out; SEC scrutinizing DraftKings

Posted on August 6, 2021 by David McKee

We Americans sure do love us some gambling. Maryland‘s July numbers just came in and it’s 20.5% (!) ahead of 2019. Casinos won $180 million and two extra weekend days obviously helped the tally. MGM National Harbor led with $72 million (+19%), outpacing Deutsche Bank analyst Carlo Santarelli‘s $64.5 million forecast. Maryland Live locked up a 35% market share and $63 million in winnings, up 28%. Penn National Gaming was just in time in reacquiring Hollywood Perryville on July 1, $9 million gross was a 34.5% improvement on two years ago. Ocean Downs leapt 28% to $10.5 million and Rocky Gap Resort‘s $6 million was a 22% gain. And in what has to be a triumph for Horseshoe Baltimore, it was flat with 2019, grossing $19 million. So there’s some hope for it yet. West Virginia casinos nudged 5% above 2019 numbers, driven by a 34% increase in table win. Hollywood Charles Town was up 7%, 1% higher at the slots and vaulting 42% at the tables.

Penn had Wall Street analysts eating out its hand after the latest earnings call. “Memes [and] grandiose proclamations run wild” wrote Santarelli. “Well, this one was interesting. Between the call commentary, 95% of which was focused on a business that, as we have said for some time, will likely never amount to more than 20% of total Company [cash flow], if it is wildly successful, the social media promotion that began immediately, and the post call livestream ‘pumpapalooza’, PENN threw all it had at the retail investment community to promote a transaction, which, in our view, speaks to exactly what we have been saying for some time, the sports, and especially iCasino, strategies aren’t working.” You see, Penn used the quarterly earnings announcement to hype its acquisition of OSB provider TheScore. “We get that PENN needed a tech stack, but buying a media Company for a tech stack, knowing the challenges peers have had buying tech companies with sports betting tech stacks, seems a bit strange, and frankly, risky. We also get that buying a Canada based company, which has billed itself as a presumptive leader in provincial sports betting, once legalized, seemingly makes sense, but if we have learned any lessons from the US market, the willingness to spend and lose is the path to market share gains, more so than media presence.”

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Posted in Arizona, Atlantic City, Bally, Barstool Sports, Caesars Entertainment, Canada, Churchill Downs, Cordish Co., DraftKings, Golden Gaming, Hard Rock International, Illinois, Indiana, International, Internet gambling, Kansas, Marketing, Maryland, MGM Resorts International, Mississippi, Missouri, Neil Bluhm, New York, Pahrump, Penn National, Pennsylvania, Politics, Regulation, Rush Street Gaming, Sports, Sports betting, Technology, Tribal, TV, Wall Street, West Virginia | Comments Off on Maryland goes, goes, goes; Penn flips out; SEC scrutinizing DraftKings

Wynn “strong” this summer; MGM returning to form

Posted on August 5, 2021 by David McKee

Wynn Resorts released 2Q21 results yesterday and JP Morgan analyst Joseph Greff called them “strong” in both Las Vegas and Boston. In Macao, eh, not so much. He began by saying “results by region unsurprisingly reflect differences in vaccination rates and mobility/visitation availability.” Wynncore is gaining momentum as the temperature rises, posting the largest cash flow ever since except when it opened. Occupancy hovered around 95% on weekends and in the 80% neighborhood during midweek. “In Macau, limited mobility and small outbreaks continue to pressure travel, unsurprising and similar to 2Q commentary from” Sands China and Melco Resorts & Entertainment. As for WynnBet, it “expects to ramp up marketing ahead of the NFL season,” which seems to be a nice way of saying nothing much is happening right now. Wynncore generated $207 million in cash flow compared to a feeble (and worse than expected) $67.5 million in cash flow from all the Macanese properties. Wynn Macau and Encore Macau only contributed $14 million, while Wynn Palace has finally found its sea legs with a $53.5 million donation. Encore Boston Harbor was a little bit under certain projections at $47 million, though it improves month by month.

Due to a sharp decline in VIP play in Macao, Wynn Resorts is remarketing them as premium mass-market casinos, in order to get pre-Covid revenues without pre-Covid foot traffic. As Deutsche Bank analyst Carlo Santarelli put it, “Las Vegas & Boston shine as Macau remains a waiting game.” Word! “We don’t think we heard anything from management tonight that will meaningfully change the view on the resumption of normalized operations in Macau, with management acknowledging an uncertain timeline, while noting encouraging trend that resemble pent up demand at certain times,” he elaborated. “We expect the Macau names to continue to trade on virus headlines and policy decisions, things we, nor most, can truly opine on with any legitimate confidence.” Back in Vegas, business is fueled by slot fanatics, with coin-in up 37% and table wagering down 3%. Blame the latter on a lack of international players.

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Posted in Atlantic City, Caesars Entertainment, Cordish Co., Entertainment, Golden Nugget, Japan, Las Vegas Sands, Macau, Marketing, Massachusetts, Melco Resorts & Entertainment, MGM Resorts International, Mississippi, Sports betting, Taxes, The Strip, Tourism, Wall Street, Wynn Resorts | 3 Comments

Monster monopoly on the Strip?; Caesars wows Wall Street

Posted on August 4, 2021 by David McKee

In a deal that Nevada regulators would block if they had an ounce of spine, MGM Growth Properties proposes to sell itself to Vici Properties, which would put nearly all the prime land on the Las Vegas Strip under one owner. Vici already owns most Caesars-branded properties on the Strip and is on the verge of adding The Venetian and Palazzo. It was, as Deutsche Bank analyst Carlo Santarelli put it with delicious understatement, “a deal with far-reaching implications.” The price tag is a whopping $17.2 billion, paid in a mix of cash and stock. Of that, $5.7 billion is debt already carried by MGP. Adds Santarelli, “the true driver of M&A in the [REIT] sector was cost of capital, and with VICI having traded at a healthy equity premium to the group for some time, with access to inexpensive debt financing, the transaction makes both intuitive and financial sense.” Still, $17.2 billion is a not-inconsiderable amount of debt, however low your interest payments may be (3.75% in this case).

“In 2016 we started on our journey to become asset light and this announcement, together with our recently announced Springfield and CityCenter transactions, reflects the culmination of those efforts and a major step forward in simplifying our corporate structure,” said CEO Bill Hornbuckle. “As a result of these actions, we are well positioned and remain focused on pursuing growth opportunities in our core business, with significant financial flexibility to continue to deploy capital to maximize shareholder value.” In a goodbye note to MGM, MGP Chairman Paul Salem wrote, “We are thankful to the MGP management team for all of their efforts to develop MGP into a premier gaming REIT.” “We have always admired the exceptional quality of MGP’s real estate portfolio,” added Vici CEO Ed Pitoniak, unable to conceal his glee.

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Posted in Atlantic City, Caesars Entertainment, Cirque du Soleil, CityCenter, Conventions, Dining, Illinois, Indiana, International, Internet gambling, Louisiana, Massachusetts, MGM Resorts International, Missouri, Nebraska, Politics, Real Estate, Regulation, Sports betting, Tennessee, The Rio, The Strip, Vici Properties, Wall Street, William Hill | 1 Comment

MGM does the right thing; Killer chipmunks in Lake Tahoe

Posted on August 3, 2021 by David McKee

In a very george move, MGM Resorts International is donating two acres of Strip land to be the site of a memorial to the victims of the Mandalay Bay Massacre. The acreage, at the corner of Reno Avenue and Giles Street, is part of the larger area where the infamous Route 91 Harvest festival took place. The exact nature of the memorial remains to be debated and we’re sure it will be a contentious process. But we’re also certain that MGM could have seen megabucks for the two acres on the open market and chose to pass that up in favor of a generous gesture toward the Las Vegas community. (Sixty people died and hundreds were injured due to the act of domestic terrorism.) “Having a permanent memorial commemorating the victims and heroes of 1 October is vital to our community’s continued healing, and we are honored to donate a portion of the Village site to help bring that memorial to fruition,” read a formal MGM statement. We’ve often been critical of MGM’s response to the victims of the shooting but would like to think we’ve saluted it when it’s done the right thing. As it just did.

Gaming & Leisure Properties Inc. is dropping ominous hints about the future of the Las Vegas Tropicana, feeding into speculation that owner-to-be Bally’s Inc. will demolish the venerable resort so that its 35 acres can be converted into a baseball stadium. This would be the cruelest in a series of cruel blows to the Trop, which has suffered from a series of poor or inattentive ownerships. Admittedly, at 64 years of age, the Trop is ancient history by Vegas standards—and Bally’s might be left at the altar. The Oakland Athletics have reopened negotiations with Oakland Mayor Libby Schaaf, suggesting that Sin City just got played by the big boys. Since the A’s are committed to Oakland through 2024, Bally’s doesn’t have to make any rash decisions regarding the Trop’s immediate future.

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Posted in Australia, Bally, Baseball, Caesars Entertainment, Charity, Crown Resorts, Dining, Economy, GLPI, Health, Iowa, Lake Tahoe, Las Vegas Sands, Macau, Mandalay Bay Massacre, MGM Resorts International, Minnesota, North Carolina, Sociedade de Jogos de Macau, Sports betting, Taxes, The Strip, Tribal, Virginia, Wall Street, Wynn Resorts | 1 Comment

Masks back on, Las Vegas!; All’s right with the REITs

Posted on July 30, 2021 by David McKee

Mincing few words, MGM Resorts International CEO Bill Hornbuckle sent a letter to all employees, urging them to quit dithering and get their Covid-19 vaccinations, if they haven’t already. He pleaded, “In addition to the heart-wrenching thought of more illness and death, I fear that progressively more restrictive measures, including a return to social distancing and capacity restrictions, could be around the corner if we continue on this path. This would be a significant blow to our community, industry, and economy.” Clark County‘s current vaccination rate currently stands as a dismal 44%. The county is reliably “blue” territory, so this crisis goes beyond political chumming of the anti-vaxxer waters. Playing to his audience’s wallets, Hornbuckle warned that, as Las Vegas‘ health goes, so does its economy. If Coronavirus worsens and scares tourists away, furloughs and layoffs could follow. He wrote, “After the pain endured by so many these past 16 months–and the tremendous progress made in 2021–I can think of no more damaging scenario for us as a community.”

We think that Hornbuckle and others in like positions in Big Gaming are stopping one step short and need to mandate vaccination for their workers. If little outfits like Google, Facebook, Twitter, Netflix, Lyft, Morgan Stanley, Saks Fifth Avenue, The Washington Post, Ascension Health and BlackRock can do it, MGM can. We know you’re feeling cabin fever and ‘pandemic fatigue’ out there, America. We feel your pain. It would be great if events ran in a bright, linear fashion. But this is a war, a once-in-a-century calamity and, had we been so easily discouraged in the 1940s, the Axis powers would have won World War II (gladdening the heart of Imperial Palace founder Ralph Engelstad).

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Posted in Bally, BetMGM, Boulder Strip, Boyd Gaming, Caesars Entertainment, Charity, Churchill Downs, Conventions, Delaware, Derek Stevens, Dining, Economy, GLPI, Health, history, Indiana, Kentucky, Lake Tahoe, Las Vegas Sands, Laughlin, Maryland, MGM Resorts International, Mississippi, Nevada, North Las Vegas, Penn National, Real Estate, Resorts World LV, Singapore, Sports betting, The Strip, Tribal, Wall Street | 3 Comments

Station hits records, drops hints; Strip suffers mild setback

Posted on July 29, 2021 by David McKee

Station Casinos announced 2Q21 earnings yesterday and “blows through” previous peaks, according to Deutsche Bank analyst Carlo Santarelli. Despite expiration of the management contract at Graton Rancheria, Station recorded record levels of net revenue ($426.5 million) and cash flow ($210 million), leaving Wall Street‘s $159 million consensus in the dust. Management is in no hurry to reopen Texas Station or Fiesta Rancho or Fiesta Henderson and why not? It costs only $2 million per quarter to keep them dark and their business is obviously being soaked up elsewhere. Station execs performed a fan dance regarding Durango Station, withholding the budget but announced their intent to break ground in early (pre-April) 2022, with an 18-24 month construction timeline envisioned. When completed, it will have 2,000 slots, 40 tables and four restaurants, along with the inevitable sports book. Santarelli expects Durango Station to be financed out of (abundant) free cash flow, possibly filled out with the sale of some excess land. The $650 million all-cash Palms sale proceeds have also been earmarked to cover construction costs.

Buffets may be gone with the wind but Station expects to reopen its showrooms in the second half of this year, and for group business to return over the next two years. Truist Securities analyst Barry Jonas noted “incremental hotel business” improvements congruent with the distribution of the Coronavirus vaccine. “Stimulus payments have also played into recent strength, though management noted sizable savings and discretionary income with their core customer base beyond stimulus.” While acknowledging “uncertainty” around the state mask mandate, Station brass said that business didn’t change markedly when masks came off in June. “This suggests there may not be any meaningfully negative impact with reintroducing masks,” reported Jonas, “Management also notes that they expect any potential impact to be short-lived.”

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Posted in Atlantic City, California, Downtown, Economy, Entertainment, Golden Nugget, Hard Rock International, Health, Las Vegas Raiders, M Resort, MGM Resorts International, Ocean Resort, Palms, Reno, Sports, Station Casinos, The Strip, Tourism, Transportation, Tribal, Wall Street | 3 Comments

Boyd beats The Street but charts cautious course

Posted on July 28, 2021 by David McKee

“Massive beat” and “exceptional” results were some of the terms being bandied about after yesterday’s Boyd Gaming 2Q21 earnings call. Wall Street expected $803 million in revenue and Boyd delivered $896.5 million, while profit margins at its Las Vegas locals casinos rose all but exponentially over 2019. “We believe this acceleration is likely to surprise investors,” wrote Deutsche Bank analyst Carlo Santarelli, adding that Boyd executives thought their performance targets had been too conservative. They also gave a hint about 3Q21, saying that June’s strength was (no surprise) carrying over into July. “While investors are sure to question the sustainability of margins going forward, as any right minded individual would, especially after this quarters [sic] performance, we continue to believe there is support in the thesis for the likes of” Station Casinos, Golden Entertainment and Boyd. Leadership, JP Morgan analyst Joseph Greff wrote, “notes that the 2Q21 undoubtedly benefitted from government stimulus and unemployment insurance padding consumer spend, but also strong demand from its core customer.

“While labor shortage is an issue, we don’t think elevated labor costs going forward will pierce margin gains in a significant way which poses risks to our new forecasts,” Greff continued. He liked a business plan “predominantly focused on a drive-to, leisure gaming customer. We think our estimates are reasonably based, with a steady return of its older demographic.”

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Posted in Boulder Strip, Boyd Gaming, Downtown, Economy, Golden Gaming, Hawaii, Health, Internet gambling, Louisiana, Nevada, New Jersey, Pennsylvania, Sports betting, Station Casinos, Wall Street | 1 Comment

Caesars massacres table games, renames Superdome; Bally’s boffo

Posted on July 27, 2021 by David McKee

At the risk of flogging a deceased equine, the emperor at Caesars Entertainment has yet again showed himself to be without clothes. The latest Eldorado-ization of the Roman Empire is the wholesale slaughter of table games along the Las Vegas Strip. As Vital Vegas reported over the weekend, “entire swaths” of the games have disappeared from casino floors, leaving blank patches to be filled in with slot machines or that dreaded new idol of casino executives, electronic table games. Just think of all the high-salaried dealers you can pink-slip! As Scott Roeben wrote to us, it’s “a really big shift that was happening under our noses.” We should have known, perhaps. Caesars execs had been promising to run a post-pandemic company at pandemic-era cost levels, which would require some real creativity. Enter the robo-games and the conversion of properties like Caesars Palace and The Cromwell into giant slot parlors.

Not only do ETGs cost less than old-fashioned table games, they offer lower minimums (and table minimums along the Strip have gotten pretty steep). It’s a shameless play for the low-roller clientele and another symptom of “Less Vegas,” the post-Covid environment in which the casinos make money by offering a diminished experience for the same—or sometimes higher—price. Certainly in Caesars’ case it bespeaks a contempt for the player, providing a regional-casino atmosphere in what was supposed to be the Holy See of gambling. It’s the latest in a death of the Roman Empire by a thousand cuts: short-poured liquor, closed buffets, shuttered shows and defunct player lounges. Roeben gloomily writes, “As there’s unlikely to be a new wave of demand for table games, expect this to be the new normal in Las Vegas casinos.”

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Posted in Atlantic City, Australia, Bally, Caesars Entertainment, Crown Resorts, Dining, Eldorado Resorts, Fontainebleau, Hard Rock International, Illinois, Jack Entertainment, Louisiana, Macau, Maryland, MGM Resorts International, Regulation, Resorts World LV, Rush Street Gaming, Sports, Taxes, The Strip, Virginia, Wall Street, Wynn Resorts | 5 Comments

‘ElDiablo’ rides again; Sports betting on the verge in Massachusetts

Posted on July 23, 2021 by David McKee

Last week, Vegas Message Board hosted a lengthy, detailed and impassioned screed from a self-professed Seven Stars member about a recent trip to Las Vegas and stay with Caesars Entertainment. First, the good news: the player host was extremely obliging, guest service was friendly and great, and the food was very good. The bad news was … almost everything else. The guest rooms at Harrah’s Las Vegas (our source’s hotel of choice) “were all recently remodeled, were nice enough, and had a low comp rate.” But mention the magic word “Eldorado” to an employee and, boy, did they spill! This started as soon as the party arrived, being informed that valet parking was closed from noon on Tuesdays until the weekend. The valet parking attendant “told me they are always hiring but that they have plenty of parkers and plenty of business to have valet open 24/7 like it used to be. He said it’s all Eldorado being cheap and not caring about providing the customer the proper service they are entitled to and have come to expect.”

“This became a theme of the trip; mention Eldorado to an employee and they knew YOU knew what was going on and felt they could talk candidly about how far and how quickly Eldorado is bringing the company down and treating not just guests, but also employees, with disdain.” The hits just kept on coming: The Seven Stars/Diamond lounge was closed, ostensibly on a temporary basis. Our source was told it has been defunct since the Great Reopening and they don’t expect it ever to resume hosting players. Upon check-in (understaffed), the visitors witnessed a line like the one seen below—by a friend of S&G—at 4 p.m. on a Sunday over at the Flamingo.

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Posted in Architecture, Atlantic City, Bally, Caesars Entertainment, Eldorado Resorts, Entertainment, Foxwoods, Georgia, GLPI, Hard Rock International, Massachusetts, Penn National, Politics, Slot routes, Sports betting, Taxes, Wynn Resorts | 3 Comments

LV Sands overpromises, underdeliver; Court to Station: Unionize!

Posted on July 22, 2021 by David McKee

Shares of Las Vegas Sands traded down yesterday after the company missed its second-quarter estimates. Wall Street expected cash flow of $290.5 million and LVS delivered $244 million, a significant shortfall. (Mind you, Sands no longer reports earnings from Venelazzo.) Revenue overall was $1.17 billion, not the expected $1.37 billion. Sands execs blew sunshine up Wall Street’s keister, predicting better Macao business in the third and fourth quarters, albeit conceding that Singapore was harder to predict. Due to Marina Bay Sands-derived Coronavirus cases, the megaresort is closed from today through August 5. As for LVS’ new focus on i-gaming, the company is thinking small, planning to act as a supplier to other online companies and make minor purchases. Or, as President Patrick Dumont wisely put it, “I don’t think we’re going to buy our way into a business.”

Back on terra firma, CEO Rob Goldstein is still in denial about Texas after the company’s stunning rejection there, while continuing to ramp up ($17 million and counting) a ballot drive in Florida to permit new resort casinos. The company is concentrating on the gaming-averse northern part of the Sunshine State, going out of its way not to antagonize the powerful and well-heeled Seminole Tribe.

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Posted in China, Culinary Union, Florida, Health, Internet gambling, Japan, Las Vegas Sands, Macau, Seminole Tribe, Singapore, Station Casinos, Texas, Tourism, Wall Street | 1 Comment

Real estate frenzy on the Strip; Barrack busted; Masks redux

Posted on July 21, 2021 by David McKee

Setting foot inside Aztec Inn Casino is not for the faint of heart. But its owners think they’re sitting on a gold mine. It and a gaggle of properties that includes Golden Skull Tattoo and Diversity Tattoo is on the market in plots of $30 million each or $60 million for the whole Aztec enchilada. Because the area is somewhat, uh, challenged, it qualifies for tax incentives and there’s no height restriction on development—you’d be next door to the friggin’ Stratosphere, after all! Now, those prices seem a mite aggressive, given the off-Strip location and general dilapidation of the area. But with two acres of CityCenter fetching $80 million, why be timid about one’s asking price? It’s a seller’s market. As for buyers, so far they’re overseas interests who, seeing the chances of gaining a foothold on the Strip proper as being somewhere betwixt slim and none, are creating their own opportunities.

The fix was in at City Hall in Oakland, where the Athletics—despite extracting desired concessions from the city—used the negotiations as a pretext to pull up stakes and move to Las Vegas. Considering that A’s brass was kicking the tires on Clark County ballpark sites the day before the vote was taken is an index of how sincere the team was about staying in California. So it looks like Clark County will be strong-armed into helping subsidize a billion-dollar ballpark, even as it has already made three emergency-fund draws to keep Allegiant Stadium up to date on its bond obligations.

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Posted in BetMGM, Caesars Entertainment, California, Colony Capital, Donald Trump, DraftKings, Fontainebleau, Health, International, Law enforcement, MGM Resorts International, Phil Ruffin, PointsBet, Real Estate, Reno, Sports, Sports betting, Steven Witkoff, The Strip, Tribal | 1 Comment

Las Vegas flirting with disaster; Pennsylvania sickly

Posted on July 20, 2021 by David McKee

With the exception of brave outliers Las Vegas Sands and Westgate Las Vegas, most casinos in Sin City are reacting to the resurgence of Covid-19 by doing … nothing. There’s a ‘been there, done that‘ attitude toward crisis-period measures like requiring guests to wear masks or stepping up hotel sanitization (one recent guest to Harrah’s Las Vegas says his room was cleaned once in four days). “Where we sit right now with the information we know, that’s the best approach, for each operator to evaluate their own situations,” said industry apologist Josh Swissman. “It really comes down to what makes the customers feel comfortable.” And if that means sickness and death, isn’t that the cost of doing business in Las Vegas? About the only hammer that could be deployed to motivate a robust response would be new safety mandates from the Nevada Gaming Control Board and we don’t seem to be at that desperate juncture yet. (Operative word “yet.”)

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Posted in Arizona, Bally, Barstool Sports, Baseball, BetMGM, Caesars Entertainment, Churchill Downs, Cordish Co., DraftKings, Economy, FanDuel, FoxBet, Genting, Greenwood Racing, Hard Rock International, Health, Internet gambling, Las Vegas Sands, Mohegan Sun, Nevada, New York, Ohio, Penn National, Pennsylvania, Regulation, Rush Street Gaming, Singapore, The Strip, Tourism, Tribal, Wall Street, Westgate LV | 3 Comments

Atlantic City plays catch-up; Pennsylvania, Michigan flex online muscles

Posted on July 19, 2021 by David McKee

Casinos in Atlantic City are having trouble catching a wave from the Great Reopening. Last month’s brick-and-mortar revenues were $214.5 million, 9% down from 2019. Slot win ($154 million) was 8% lower on 11% less coin-in and luck wasn’t with the house at the tables: 16% less revenue ($58.5 million) on only 1% less wagering. Borgata ($56.6 million) was luckier in that respect than most, with its table win flat despite 11% less betting, while slots plunged 20% on 23% less coin-in for an overall -13%. The Caesars Entertainment threesome slid 15%, on 17% lower slot win (18% less handle) and an 8% dip at the tables, where players bet 7% less than two years ago. Caesars Atlantic City fell 14% to $20 million last month, Harrah’s Resort slipped 13% to $21 million and Tropicana Atlantic City tumbled 18% to $21 million.

The only-revenue positive casinos were Ocean Resort, gaining 14% to $23 million (outdoing any Caesars property), and Hard Rock Atlantic City, surging 17% to $35 million. It will take more than new, pink windows to turn around Bally’s Atlantic City, plummeting 30% to $11 million. Also falling on hard times was the Golden Nugget, down 23% to $12 million, which left Resorts Atlantic City, down 11% to $14 million.

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Posted in Atlantic City, Bally, Barstool Sports, BetMGM, Caesars Entertainment, Cordish Co., Culinary Union, Derek Stevens, Dining, DraftKings, Economy, FanDuel, FoxBet, Golden Nugget, Greenwood Racing, Hard Rock International, Health, Internet gambling, Japan, Las Vegas Sands, Massachusetts, MGM Resorts International, Michigan, Mohegan Sun, New Jersey, Ocean Resort, Penn National, Pennsylvania, Rush Street Gaming, Sports, Sports betting, Station Casinos, Taxes, The Strip, Wall Street, Westgate LV, William Hill, Wynn Resorts | 2 Comments

Massachusetts stumbles, Louisiana cruises; Big blunder at Circa

Posted on July 16, 2021 by David McKee

Shazam! Massachusetts casino revenues for June were $84 million, 67% higher than 2019. But wait … as Deutsche Bank analyst Carlo Santarelli points out, Encore Boston Harbor wasn’t operational two years ago (it debuted on June 23, 2019), so on a same-store basis, casinos were actually down 6%. How come? The Bay State doesn’t have Internet gambling, which is starting to sap Pennsylvania. Capacity is unrestrained, although poker rooms aren’t back and we hear that players are hopping mad about it. Maybe Massachusetts players just don’t have that pent-up demand we’ve seen just about everywhere else. Encore dominated with $52.5 million, while MGM Springfield actually managed a 1% increase, to $20 million. Plainridge Park was the laggard, falling 16.5% and grossing $11 million. Expect owner Penn National Gaming to renew its mewl for table games at what was always and explicitly meant to be a slots-only facility.

Drilling further down, Wynn Resorts had 63% market share, MGM 24% and Penn 13%. MGM’s comeback was powered by slots, up 4% whilst tables were 9% down. It was the other way around at Encore, where tables were up 3% ($23 million) and slots dipped 4% ($29.5 million). Wynn’s decision to predicate Encore on upper-market play is coming up aces but what MGM thought it was doing building a high-end property way out in Springfield will be a head-scratcher for future historians of the company. We know the rich folks like to luxuriate in nearby Lenox but still …

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Posted in Atlantic City, Australia, Boyd Gaming, Caesars Entertainment, California, Century Casinos, Churchill Downs, CQ Holdings, Derek Stevens, DFS, DraftKings, Economy, Golden Gaming, Health, Internet gambling, Laughlin, Louisiana, Massachusetts, MGM Resorts International, Missouri, Nevada, Penn National, Pennsylvania, Sports, Sports betting, TV, Westgate LV, Wynn Resorts | 1 Comment

Indiana, Missouri stay strong; Mixed feelings about buffets

Posted on July 14, 2021 by David McKee

Casino winnings in Indiana came up just a few increments short of $200 million last month, a 13% gain on 2019. Hard Rock Gary came out of the blocks fast, grossing $26 million, although Horseshoe Hammond climbed 7% to retain supremacy at $34.5 million. Consigned to third place in the northern tier, Ameristar East Chicago won $21.5 million, still a 20% surge from 2019. Blue Chip, on the other hand, suffered. It was down 15% to $11 million. It’s Horseshoe’s ballgame to lose.

Farther south, it was more of a mixed bag. Two big gainers were Indiana Grand, up 15% to $24.5 million, and Harrah’s Hoosier Downs, galloping +16% to $18 million. Caesars Southern Indiana also put in a strong showing, up 11.5% to $19.5 million. Hollywood Lawrenceburg ceded 2% to $13 million, while Belterra Resort slipped 9% to $8 million. Tropicana Evansville edged 3% higher to $12 million, Rising Star eked out $4 million, a 6.5% downturn, and French Lick Resort tumbled 17% to $7 million.

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Posted in AGA, Bally, Boyd Gaming, Caesars Entertainment, Churchill Downs, Dining, DraftKings, Entertainment, FanDuel, Full House Resorts, Health, Indiana, Internet gambling, Louisiana, Michael Gaughan, Missouri, New Jersey, Penn National, Pennsylvania, Philippines, PointsBet, Politics, Rush Street Gaming, Sports, Sports betting, William Hill, Wynn Resorts | 1 Comment

Nevada conventions healthy, Nevadans not so much

Posted on July 12, 2021 by David McKee

Tourism to Las Vegas in May was 12% higher than April and June should continue the climb, even if long-awaited World of Concrete was a flop (one-sixth of the expected attendance). Next up was the Nightclub & Bar Show, which drew 9,000 attendees. “I have goosebumps,” said one conventioneer of the back-to-almost-normal atmosphere. Despite the pounding techno music, amenities ran toward such mundane finger foods as Cheetos and tater tots. Portable bowling alleys and karaoke machines were among the items of interest. Evidently attendance was a last-minute decision for some, judging from the on-site registrations spotted by the Wall Street Journal. Most of the products on display were rather humble, such as a new drinking game (patent pending?) and a green-colored schnapps called Nuke Waste—how apt for Nevada.

It wasn’t quite the Nightclub & Bar Show of years past, being significantly chastened by Covid concerns. Where the expo had once been synonymous with six nights of clubbing, this year there were but two. Panels and (the more important) happy hours were also curtailed. Attendance was down 15%, exhibitors by 20%, which is still a lot better than World of Concrete managed. “Most of my sales from 1980 until today are still in-person,” said game entrepreneur Bobby Earp. “There’s no substitute for the contacts we make here.” Attendees were more worried about rising labor costs and flagging social-media presences than about Coronavirus. Even if the event was rather muted, the expo floor was awash with booze, which was freely sampled, one of the great bonuses of almost any Vegas convention. With 35 large-scale events booked between now and the end of the year, the Sin City convention calendar looks surprisingly healthy.

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Posted in China, Conventions, Dining, Donald Trump, Health, history, Internet gambling, Las Vegas Sands, Macau, MGM Resorts International, New York, Phil Ruffin, Politics, Reno, Seminole Tribe, Sports betting, Taxes, The Strip, Tourism, Tribal, Wisconsin, Wynn Resorts | 1 Comment

CityCenter sale applauded; DraftKings sued twice over

Posted on July 9, 2021 by David McKee

Deutsche Bank analyst Carlo Santarelli took a gander at the terms of MGM Resorts International‘s purchase/re-sale of Aria and Vdara, and liked what he saw. He reaffirmed his “buy” rating on MGM shares, with a price target of $54. He applauded the deal for three reasons: simplification of MGM’s corporate structure by removing joint-venture partner Infinity World; cash and lots of it; the transaction “allows MGM to better manage its Strip assets, as opposed to receiving fifty cent dollars at a key core asset, as it had been.” Santarelli believes MGM will use at least some of the proceeds to pay the remaining $1.7 billion in CityCenter debt. Considering that it cost MGM $4 billion to build Aria alone, we think the transaction is, at best, a wash, not to mention the death knell for “New Urbanism” on the Las Vegas Strip. Still, when one considers the collapse of the condo market, the slow, slow ramp-up of Crystals and the Harmon Hotel fiasco, MGM is getting out relatively unscathed.

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Posted in BetMGM, Boyd Gaming, Caesars Entertainment, CityCenter, Cretins, DraftKings, Dubai, Election, FanDuel, Health, Iowa, LVCVA, MGM Resorts International, Nevada, New Jersey, Peninsula Pacific, Penn National, Resorts World LV, Rush Street Gaming, Sports betting, The Strip, Virginia, Wall Street, William Hill | 1 Comment