Quote of the Day

Posted on November 20, 2020 by David McKee

“Now you have a situation in which large swaths of the country genuinely believe that the Democratic Party is a front for a pedophile ring. This stuff takes root. I was talking to a volunteer who was going door-to-door in Philadelphia in low-income African American communities, and was getting questions about QAnon conspiracy theories. The fact is that there is still a large portion of the country that was taken in by a carnival barker.”—former president Barack Obama, on Donald Trump and much else about contemporary America.

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Uneasy lies the head that wears Crown; IGT’s cautious future

Posted on November 19, 2020 by David McKee

Executives at Crown Resorts had better rethink that scheme to buy Sheldon Adelson‘s Las Vegas assets. The company, which has played fast and loose with money-laundering rules, has been provisionally denied permission to open its multibillion-dollar casino in Sydney. Regulators said they were “not comfortable” with giving Crown the go-ahead. It’s an anti-money-laundering lesson that should resound through the casino industry loud and clear. The New South Wales Independent Liquor & Gaming Authority had not much choice but to clamp down on Crown after the latter admitted to AML miscreance, with money improperly channeled through VIP accounts. Imagine having to go before the Nevada Gaming Control Board (and possibly FinCEN) and spin that.

There’s still a ray of hope for Crown. Commissioner Patricia Bergin is preparing a final report, due in February, one that could either let Crown off the hook or slam the door. ILGA Chairman Philip Crawford was shocked—shocked!—that there was money laundering going on at Crown, despite an accumulating pile of evidence. “We had no notice that was being done, I don’t think the Bergin inquiry or counsel assisting were aware of it and it’s come at the eleventh hour, literally—apparently 11 o’clock last night,” he explained somewhat lamely. That’s awfully late for an 11-month probe of Crown. The latter’s subsidiaries, Riverbank and Southbank, accepted less-than-kosher deposits for play at Crown casinos in Perth and Melbourne. The method employed was “cuckoo smurfing”—what we call “structuring”—dismantling large deposits into smaller increments to avoid setting off AML alarms.

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Posted in Atlantic City, Australia, Cretins, Crown Resorts, Health, IGT, Las Vegas Sands, Lotteries, Money laundering, New Jersey, Ohio, Regulation, South Dakota, Sports betting, Taxes, Wall Street | 3 Comments

Sports betting salvages Pennsylvania

Posted on November 18, 2020 by David McKee

An extra weekend notwithstanding, Pennsylvania casinos were down 16% last month. They grossed $218 million, with $155 million of that coming from the slots (-17%). Table games held their ground better, off 13% for $63 million. Sports betting chipped in $37 million worth of revenue, a sixfold improvement from the month previous. Add $11 million of promotions back and one has an implied net revenue of $48 million at the betting windows, virtual and otherwise. September’s $463 million handle improved to $526 million. Internet gambling generated another $59 million in lucre. The road ahead got a bit rockier when Covid-19 lockdowns in Philadelphia forced next Friday’s closure of Rivers Philadelphia (pictured), unlikely to reopen until New Year’s Day “at the earliest” says JP Morgan analyst Joseph Greff, hardly a prophet of doom and gloom.

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Posted in Barstool Sports, Boyd Gaming, Caesars Entertainment, Churchill Downs, DraftKings, FanDuel, Greenwood Racing, Health, Internet gambling, Mohegan Sun, Penn National, Pennsylvania, Rush Street Gaming, Sports, Sports betting, Taxes, Tribal, Wall Street | Comments Off on Sports betting salvages Pennsylvania

Sports betting boffo in Illinois; Structural shift at Churchill Downs

Posted on November 17, 2020 by David McKee

Illinois gamblers can’t seem to find their way to a casino nowadays—but they love themselves some sports betting. The state has reached $300 million in handle faster than any in U.S. history—$305 million and change during September. “Illinois’ launch in July came just as U.S. major sports returned to action and that may have helped hypercharge the market,” speculated analyst Dustin Gouker. He attributes the record to a perfect storm of sports’ resurgence, multiple operators entering the market simultaneously and Gov. J.B. Pritzker‘s extension of online registration through Dec. 12. For context, it took New Jersey six months to hit $300 million and 13 months for Pennsylvania to do the same. “Pennsylvania gives Illinois a nice barometer for how the market is doing, and so far, Illinois is off to a much faster start,” explained analyst Jessica Welman. “The ingredients for Illinois’ rapid expansion have been pretty simple so far: It is a huge market launching under unique circumstances. As long as remote registration continues there will be no single legal market more attractive for operators.” Operators banked $7 million in revenue, by the way.

After an inauspicious debut, DraftKings came on strong with $98 million, closing the gap between it and market leader BetRivers, still tops with $113 million ($98.5 million online). FanDuel, based out of Par-A-Dice, was a respectable third with $78.5 million. “DraftKings and FanDuel will continue to put pressure on BetRivers, which has really taken advantage of its early start in the market,” Welman concluded.

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Posted in Boyd Gaming, Churchill Downs, DraftKings, FanDuel, Health, Horseracing, Illinois, Internet gambling, Kentucky, Massachusetts, MGM Resorts International, New Jersey, Penn National, Pennsylvania, Rush Street Gaming, Sports betting, Wall Street, Wynn Resorts | Comments Off on Sports betting boffo in Illinois; Structural shift at Churchill Downs

Cirque sacrifies “Zumanity”; Gaming recovery vs. Covid

Posted on November 17, 2020 by David McKee

Covid-19 has claimed its first Cirque du Soleil casualty. Zumanity has gone permanently dark at New York-New York. We’ll miss the sexually charged show, which logged 7,700 performances in 17 (!) years. “We’re grateful to the cast, crew and team at Cirque for having created something very special.  We look forward to sharing plans for new entertainment programming at the New York-New York Theater in the months ahead,” said MGM Resorts International entertainment prexy George Kliavkoff. Given Coronavirus attendance restrictions, MGM will have plenty of time to mull its next offering. Zumanity seems to have been sacrificed to save Cirque’s five other Vegas shows. Not only has Phil Ruffin re-upped Mystere (and hopes for another Cirque spectacle at Circus Circus) but MGM has extended O, Love, Ka and Michael Jackson One for an unspecified number of years. There is still no timeline for reopening any of the spectaculars and, given the mandate of only 250 attendees per show, it just doesn’t make any sense now.

MGM suffered another blow on the entertainment front when David Copperfield‘s magic show had to be suspended indefinitely. The illusionist is fine but a member of his stage crew tested positive for Covid-19. The return of Copperfield was one of the few bright spots along the Las Vegas Strip, which just can’t catch a break. Copperfield promises to return ‘as soon as possible.’

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Posted in AGA, Arkansas, California, Cirque du Soleil, Derek Stevens, Economy, Entertainment, Health, Internet gambling, MGM Resorts International, Mississippi, Ohio, Pennsylvania, South Dakota, Sports, Sports betting, The Strip, Tourism, Transportation | 1 Comment

Quote of the Day

Posted on November 17, 2020 by David McKee

“The only way this stops is if people rise up. You get what you accept.”—neuroradiologist and White House Covid czar Scott Atlas, encouraging resistance to anti-viral restrictions in Michigan, where cases are through the roof. (Casinos there close tomorrow.)

Posted in Cretins, Health, Michigan | 1 Comment

Horseplay in Massachusetts and Monday mega-jottings

Posted on November 16, 2020 by David McKee

At age 86, horse owner Armand Janjigian is as alive and kicking as the thoroughbreds he wants to race in Massachusetts. No, he doesn’t have a track but he’s busily snapping up land for one. He’s also going to need a big lift from the Lege. How come? Well, obviously, horse racing isn’t what it used to be. Janjigian’s solution requires the legalization of sports betting in the Bay State and—you guessed it—casino gambling. Mind you, there’s only one racino in the state per statute and Penn National Gaming has it. Janjigian, however, has his eye on the Sturbridge area and thinks he can get a casino merely by having the zoning rules rewritten. The project would cost $25 million. The mogul, who aims for a Saratoga-like experience for horse players, would have a monopoly on thoroughbred racing, Suffolk Downs having closed after failing to strong-arm the state into a racino license.

Reports the Boston Globe, “The Sturbridge project … would be predominantly agricultural in nature: A one-mile synthetic track would be its centerpiece, with a ⅞-mile turf track inside the oval. There would also be space devoted to horses whose racing careers are over.” A familiar name has surfaced as part of the Sturbridge deal: Richard “Coastal Marina” Fields, late of Suffolk Downs. He asserts that the track doesn’t lead a casino license in order to have gambling, just legal sports betting. Spectrum Gaming Group, a trustworthy outfit, estimates that could boil down to $2 million in annual track revenue. Beacon Hill is indeed weighing legalized sports wagering but it’s hostage to budget negotiations. Time for Janjigian to do a little high-profile lobbying.

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Posted in California, Card rooms, Churchill Downs, Crown Resorts, Detroit, DFS, DraftKings, Economy, Election, FanDuel, Galaxy Entertainment, Golden Nugget, Health, Horseracing, Illinois, International, Japan, Las Vegas Raiders, Las Vegas Sands, Lotteries, Macau, Massachusetts, MGM Resorts International, Nebraska, New York, Penn National, Politics, Racinos, Regulation, Scientific Games, Sports, Sports betting, Taxes, The Strip, Tourism, Wall Street, Wynn Resorts | 2 Comments

Quote of the Day

Posted on November 16, 2020 by David McKee

“We learned a lot from our Macao experience. I think we took that impending pandemic a little bit more seriously than some people who didn’t have the same experience that we had. We knew from the Macao experience, and the People’s Republic of China experience, that this virus was highly contagious, and we knew that the possibility of stopping the spread was going to be slight.”—Wynn Resorts Vice Chairman Ellen Whittemore, speaking about Wynn’s Covid-19 response.

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Quote of the Day

Posted on November 14, 2020 by David McKee

“This will further cripple the industry and may have a very negative long term impact if a casino does not survive this. Since the [Covid-19] virus tends to grow during the colder weather, allowing conventions anytime soon will probably not happen.”—Stockton University Professor of Finance Michael Busler on the fragility of Atlantic City‘s convention industry.

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Atlantic City looking good but casinos gripe

Posted on November 14, 2020 by David McKee

An extra weekend in October was just what the doctors ordered for Atlantic City, where casino revenues were down just 8% last month, while sports betting surged 26%. Casinos took in $186 million and sports books $58.5 million. Internet gambling vaulted 107% to $93.5 million. “Casino revenues were pressured by capacity limits and restrictions on F&B offerings,” noted JP Morgan analyst Joseph Greff. Slots were down 10% but tables were only 3%, a fortuitous month for the house. Except Borgata, where gaming revenue fell 20% thanks to 23% less table win. Its slots also didn’t hold so well, retaining 18% less win than last year. The Caesars Entertainment quartet also had a bad month at the slots (-17%) but table win off only 5%. Still, Greff’s outlook for Caesars’ fourth quarter is grim: -26%.

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Posted in Atlantic City, Caesars Entertainment, Detroit, DraftKings, Economy, FanDuel, Golden Nugget, Hard Rock International, Health, Internet gambling, MGM Resorts International, Mohegan Sun, Ocean Resort, Penn National, Regulation, Sports betting, Twin River, Wall Street | 1 Comment

Busted!; Sisolak gets sick

Posted on November 14, 2020 by David McKee

If you held out any hope that Project First Light in Taunton would every see day, you can forget about it. The disenrolled Mashpee Wampanoags got slammed with some bad news yesterday as tribal Chairman Cedric Cromwell and Rhode Island architect David DeQuattro were arrested by the FBI. The charges include bribery solicitation and extortion, and Cromwell faces the brunt of them. Although Sen. Elizabeth Warren (D) and other Massachusetts politicians have carried water for the Mashpee Wamps in the past, nobody’s going to want to touch them with a barge pole now. Both men are free on $25K bond. The tribe is already seriously in hock to Genting Group, which may also want to give its former partners a wide berth.

Reports the Boston Globe, “Prosecutors allege that through his role as a member of the Mashpee Wampanoag Tribe’s Gaming Authority, Cromwell contracted with DeQuattro’s architecture and design company, RGB Architects or Robinson Green Beretta Corp., in connection with the tribe’s plans to build a $1 billion casino on reservation land in Taunton.” Per the federal indictment, Cromwell shook down DeQuattro for ten grand, money he parked in his and Mrs. Cromwell’s bank account. He also created a shell company, One Nation Development, to cover his alleged misdeeds. DeQuattro was reimbursed for the bribe by the president of his company, an unindicted co-conspirator, it would appear. Over time, Cromwell supposedly extorted $44,000 from DeQuattro and “ spent all of the money on personal expenses, including payments to his mistress,” according to U.S. Attorney Andrew Lelling.

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Posted in Donald Trump, Economy, Election, Genting, Health, Internet gambling, Law enforcement, Massachusetts, Nevada, Tribal | 2 Comments

Gaming slows across Midwest … except in Ohio

Posted on November 13, 2020 by David McKee

Caesars Entertainment CEO Tom Reeg must have dropped some extra-potent LSD before his last investor call. His comments were summarized by one auditor as, “When we get into a Post-COVID world Pent-Up demand you’re going to see for Gaming And … Las Vegas in Particular Is going to be beyond your Wildest Dreams. Unlike anything that’s happened historically in this Space.” That not only puts Reeg not only out on a limb but in the thinly populated lunatic fringe of gaming executives and Wall Street analysts. It also conveniently allows Reeg to write off present-day reality as an aberration. For example, the drawdown of federal economic stimulus seems to be having a parallel effect on regional gaming. Not even two extra weekend days in October could produce impressive results.

True, there’s always Ohio, no doubt helped by the fact that Detroit casinos are still largely off-limits. The Buckeye State was up 7% to $169 million. MGM Northfield Park and Hollywood Columbus vied for the top spot with $20 million each. But MGM doesn’t have table games so we give it the ‘win.’ Hollywood Columbus was up 10.5% while MGM slipped 5%. Hollywood Toledo continues to outperform, with $18.5 million and a 16% gain. Jack Cleveland won $19 million for a 12% upsurge and Hard Rock Cincinnati kept its footing, up 1.5% to $17 million. Jack Thistledown grossed $14 million, up 16.5%, while Scioto Downs did $17 million (+11%) and Miami Valley Gaming won $14.5 million (+2%). Belterra Park was flat at $7 million, while Hollywood Dayton leapt 13.5% to $11 million and Hollywood Mahoning Valley slipped 2% to $11 million.

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Posted in Boyd Gaming, Caesars Entertainment, Churchill Downs, Cordish Co., Dan Gilbert, Detroit, DraftKings, Economy, FanDuel, Full House Resorts, Golden Gaming, Hard Rock International, Indiana, Las Vegas Raiders, Maryland, MGM Resorts International, Ohio, Penn National, Spectacle Entertainment, Sports, Sports betting, Twin River, West Virginia, William Hill | Comments Off on Gaming slows across Midwest … except in Ohio

Station, DraftKings, Macao all looking up

Posted on November 13, 2020 by David McKee

So much news … where to begin? Station Casinos got a thumbs-up from analysts at JP Morgan who met with the Fertitta Brothers and CFO Stephen Cootey. “We come away impressed with [Station’s] resolve in maximizing free cash flow at its simple business model, a focus on one major gaming market, the LV Locals, whose economic underpinnings are driven by population growth and less dependency on the health of the LV Strip versus 12 to 15 years ago, when the correlation was relatively high,” wrote Joseph Greff. He also approved of Station’s trimming of marketing expenses and still likes the stock to climb to $24/share by year’s end. The company’s perspective is that the Las Vegas market is “stable,” moreso than in 2008, thanks to 1) steadier home prices, 2) an infusion of retirees from California and 3) a more diversified local economy. Closing four casinos has not hurt Station, as customers are migrating to its other properties. (This could feed rumors of sales of the two Fiestas and Texas Station.)

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Posted in Canada, China, Dining, DraftKings, Economy, Health, history, Internet gambling, Macau, Marketing, Palms, Phil Ruffin, Sports, Sports betting, Station Casinos, Wall Street | 2 Comments

Back from the Mountains

Posted on November 12, 2020 by David McKee

So we’ve returned from the Great Smokies—and brought bronchitis home with us. On doctor’s orders S&G is out of action today but will return tomorrow with an extra-large tranche of news. In the meantime, stay well and, as Wesley Snipes said in Passenger 57, “Always bet on black.”

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Quote of the Day

Posted on November 11, 2020 by David McKee

“What we have seen in the last week from the president more closely resembles the tactics of the kind of authoritarian leaders we follow,” said Michael J. Abramowitz, the president of Freedom House, a nonprofit organization that tracks democracy around the world. “I never would have imagined seeing something like this in America.”-—from the Boston Globe.

Posted in Current, Donald Trump | 1 Comment

The trajectory of recovery

Posted on November 10, 2020 by David McKee

… and BetMGM doubles down on the sweet science. Happy Veterans Day tomorrow.

Posted in Economy, Entertainment, MGM Resorts International, Mississippi, Sports, Sports betting, The Strip | Comments Off on The trajectory of recovery

On vacation

Posted on November 6, 2020 by David McKee

Today’s S&G entries are the last until next Thursday, when I take up the keyboard again after a refreshing (I hope) vacation in scenic, rural Blairsville, Georgia. Hiking, sightseeing and much dining are on the agenda. Wish us the best!

Posted in Current, Georgia, Tourism | 1 Comment

Wynn winning; Flyover Country keeps Caesars aloft

Posted on November 6, 2020 by David McKee

Wynn Resorts reported 3Q20 results yesterday and the headline item was Macao, where operating results were “soft” but “encouraging,” despite “negative to apathetic investor sentiment,” according to JP Morgan analyst Joseph Greff. Mass-market wagering was up 40% and credit issued by third parties rose to as much as 30% of pre-Covid-19 levels. Results reflect continued, albeit gradual, progress, from IVS resumption and the return of visitation to Macau post Golden Week which, to us, show genuine pent-up demand and an inflection point there,” wrote Greff. Profits in Las Vegas overshot his expectations, as casinos revenues declined only 25%, even with restricted capacity. And Encore Boston Harbor, “generated upside on strong slot revenues, which were up year-over-year, though some of this strength will be impacted starting this weekend as the casino hours will be curtailed on COVID-19 related state mandates.”

Best of all, the company busted out Wynn Interactive, an i-gaming company and joint venture with former shareholders of Britan‘s BetBull. The company has invested $80 million, targeting nine states and keeping an eye on another seven. If all 16 come through, that would give Wynn Interactive access to 58% of the U.S. populace. It’s already live in New Jersey, with Colorado, Michigan and Indiana coming online by year’s end. “We continue to believe that Macau will be the primary driver of the stock but it now has other emerging drivers,” said Greff, referring to the new revenue propellant. Still, a recovery may be long in coming. Greff lowered his cash-flow target for WYNN significantly for next year (Las Vegas and Macao 31% down, and Everett 16% up. Looking ahead to 2022, VIP gambling revenue in Macao is predicted to fall 27% while mass-market and slot play lag 2019 by 20%.

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Posted in Atlantic City, Caesars Entertainment, Colorado, Conventions, Culinary Union, Dining, Diversity, Donald Trump, Economy, Election, Golden Gaming, Hard Rock International, Indiana, Internet gambling, Louisiana, Macau, Majestic Star, Maryland, Massachusetts, Michigan, Nevada, New Jersey, Planet Hollywood, Politics, Reno, Slot routes, Sports betting, The Rio, The Strip, Tourism, Wall Street, William Hill, Wynn Resorts | 2 Comments

Not all that is Golden glitters; Scientific’s cause for concern

Posted on November 5, 2020 by David McKee

Golden Gaming reported earnings today and there was sufficient good news to be upbeat about the stock—except in Nevada. Casino revenue fell 15% in 3Q20 to $115 million. Slot routes, which ought to be trending upwards, tumbled 31% to $48 million. Golden’s Maryland outpost, Rocky Gap Casino, was up 4% to $20.5 million and Montana slot routes hopped 17.5% to $22 million. The silver lining was cash flow (aka return on investment), with Nevada casinos producing $42.5 million, an 18.5% increase. Rocky Gap jumped 27.5% on $8 million and Montana slot routes yielded $2.5 million, up 6.5%. But Silver State slot route cash flow cratered, down 76.5% to $2 million. The casino-revenue shortfall is predictable, perhaps, but the slot-route calamity is a real puzzler.

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Posted in Economy, Golden Gaming, Health, Internet gambling, Lotteries, Maryland, Nevada, Scientific Games, Slot routes, Sports betting, Wall Street | Comments Off on Not all that is Golden glitters; Scientific’s cause for concern

Quote of the Day

Posted on November 5, 2020 by David McKee

“This is the time we dig into ourselves and cling to one another and fight to find ourselves. This is the time to fight for the America we say we want, to fight for a new American face. It’s not sexy work, the scratching of one’s eyes out so we can actually see a new future.”—Boston Globe columnist Jeneé Osterheldt.

Posted in Current, Diversity | Comments Off on Quote of the Day