Quote of the Day

Posted on October 9, 2020 by David McKee

“Democracy isn’t the objective; liberty, peace, and prospefity [sic] are. We want the human condition to flourish. Rank democracy can thwart that.”—Sen. Mike Lee.

Posted in Current | 5 Comments

Ohio still strong; Internet saps brick-and-mortar casinos

Posted on October 8, 2020 by David McKee

Buckeye State casino revenues continue to trend upward, gaining 6% to finish at $164.5 million in win. Now that casinos are open in Detroit, it took some of the sheen off Hollywood Toledo, but not much. It was up 13.5% to $19 million. Hollywood Columbus, up 4%, nipped past it to $19 million. Both were eclipsed by MGM Northfield Park‘s return to the top spot, rising 3% to $20 million. Jack Cleveland rose 5% to $18 million while Hard Rock Cincinnati slipped 3% to $15.5 million. Next to MGM, the best of the racinos was Scioto Downs, up 8% to $16 million. Jack Thistledown (pictured) vaulted 21% to $14 million, while Miami Valley Gaming was right behind it, up 1%. Hollywood Mahoning Valley‘s $11 million represented a 3% increase while Hollywood Dayton ascended 13.5% to almost $11 million. Belterra Park brought up the rear with $7 million, a 2% dip.

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Posted in Boyd Gaming, Caesars Entertainment, Churchill Downs, Dan Gilbert, Dining, Downtown, Economy, Election, Internet gambling, MGM Resorts International, Ohio, Penn National, Sports betting, Tourism, Wall Street | 2 Comments

Sports betting lifts Illinois; Packer in a pickle

Posted on October 7, 2020 by David McKee

It was sagacious of Illinois Gov. J.B. Pritzker (whose family used to co-own the Grand Victoria casino in Elgin) to temporarily suspend his state’s rule requiring in person registration for sports betting. Last month, the Land of Lincoln saw $140 million in handle. Illinoisans may not want to go to casinos but mobile wagering got a big thumbs-up, even with FanDuel on the sidelines for almost all of August. Still, PlayIllinois.com‘s Zack Hall notes that “in-person registration rules remain inconsistent and tenuous.” So there’s work to be done. Added analyst Dustin Gouker, “August’s results are a testament to just how lucrative a market Illinois truly can be. “In-person registration was stunting growth and that ended on Aug. 21 … Even with that, Illinois found itself ahead of Colorado [$128.5 million], which has matured much more quickly, and on the heels of Indiana [$169 million], the country’s fourth-largest market.”

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Posted in Australia, Boyd Gaming, China, Churchill Downs, Colorado, Crown Resorts, DraftKings, FanDuel, Health, Illinois, Indiana, Law enforcement, Lawrence Ho, Melco Resorts & Entertainment, Regulation, Sports, Sports betting, The Crown 18, The Mob | 1 Comment

Maryland returns to normal; Caesars offloads assets

Posted on October 6, 2020 by David McKee

Pandemic? What pandemic? Maryland casino revenues were 1% above last September’s, indicating a resumption of normality, at least where gambling is concerned. The statewide gross was $149.5 million. That’s despite restrictions that include keeping the casino floor at 50% of capacity. MGM National Harbor was flat at $57.5 million, with its VLTs down 3% but tables up 3%. Since table revenues are taxed at a much lower rate in the Free State, that’s a shift that MGM execs will be happy to take. MGM’s market share was 40%, compared to Maryland Live‘s 34%. The latter was up 3% to $49 million. Horseshoe Baltimore continues to slide into irrelevance (even with both baseball and football in season in its vicinity), down 5% to $17.5 million. Hollywood Perryville vaulted 12.5% to $7 million and Ocean Downs was up 3% to $8 million. Out west, Rocky Gap Resort rose 5% to $5 million.

West Virginia, by contrast, had a terrible month. Casino revenues fell 21%, with tables plummeting 40% and slot win falling 2o%. Charles Town Races fared worse, thanks to a -49% disaster in table win. Slots slipped 17% for an overall decline of 24%. Up north, in Pennsylvania, while Cordish Cos. still hasn’t opened Stadium Casino, its satellite is almost ready to go. Live Casino Pittsburgh, a $150 million project is set to debut late next month. Cordish execs are trying to remain optimistic in the face of Covid-19 restrictions that have sent other area casinos reeling.

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Posted in Caesars Entertainment, Churchill Downs, Conventions, Cordish Co., Cretins, Delaware, Diversity, Economy, Election, FanDuel, Golden Gaming, Health, International, Internet gambling, Maryland, MGM Resorts International, Nebraska, Penn National, Pennsylvania, Racinos, Reno, Sports betting, Tribal, Virginia, West Virginia, William Hill | Comments Off on Maryland returns to normal; Caesars offloads assets

Kraft cashes out; Foxwoods is tops

Posted on October 6, 2020 by David McKee

Since its IPO, DraftKings stock has rocketed 264% upward. That has prompted some profit-taking on the part of both DraftKings itself and New England Patriots owner Robert Kraft. (Maybe Kraft’s windfall will soften the pain of last night’s drubbing at the hands of the Kansas City Chiefs.) DraftKings is unloading 16 million shares while Kraft is among a group of investors selling another 16 million. (The stock currently trades at $60/share.) While the selloff depressed share prices by three dollars, it will be a nice pay packet for DraftKings, which only said the money would go to “general corporate purposes.”

As for the individual sellers, Kraft isn’t even the biggest one. That’d be Israeli billionaire Shalom Meckenzie, who’s putting a whopping 8.5 million shares on the market. He stands to make a half-billion dollars but will still retain a strong position within DKNG. Reports Bloomberg, “The company’s offerings have prompted sell-side analysts to leapfrog one another, slapping on fresh price targets that are each higher than the one before.” Meanwhile, rival FanDuel is fighting back with heavy ad buys, including the only good sports-betting commercial we’ve seen:

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Posted in Arizona, Atlantic City, Caesars Entertainment, California, Conventions, Dining, DraftKings, FanDuel, Florida, Foxwoods, Hard Rock International, Las Vegas Raiders, Mohegan Sun, Ocean Resort, Reno, Sports, Sports betting, Tribal, TV, Wall Street | 1 Comment

Quote of the Day

Posted on October 6, 2020 by David McKee

“If this experience hasn’t taught him anything—after the virus not only infected him but his loved ones, workforce, and donors — he’s unteachable.”—Arthur Caplan, director of medical ethics at New York University’s Grossman School of Medicine, on Donald Trump‘s recent conduct.

Posted in Donald Trump, Health | Comments Off on Quote of the Day

Covid-19 rattles oddsmakers; No joy in Vegas

Posted on October 5, 2020 by David McKee

Before the ink was dry on a deal for BetMGM to become the official wagering partner of the Tennessee Titans, inescapable Covid-19 rippled through the Titans’ ranks, forcing indefinite postponement of a tilt against the Pittsburgh Steelers. Incidences like this and tonight’s delayed Kansas City Chiefs/New England Patriots face-off are starting to make themselves felt in NFL betting lines. “The first few weeks in the NFL went so well, it would have been easy to forget that a single positive test can send waves through the schedule,” said Brett Collson, lead analyst for TheLines.com. “Oddsmakers are accustomed to factoring in injuries, but both bettors and oddsmakers are dealing with an extremely fluid situation where active rosters and schedules can change in a flash. So far, it appears that hasn’t dampened the enthusiasm for bettors overall.”

That’s good, but you can’t put down a wager on the Week 5 game between the Titans and Buffalo Bills. Too many imponderables. Four other games have only partial odds, pending tonight’s outcome. Also, oddsmakers are getting headaches trying to adjust the odds to account for the positive Covid tests of players like Cam Newton. Meanwhile, to amuse ourselves, we note that the Baltimore Ravens are 13.5-point favorites over the lowly Cincinnati Bengals, the biggest point spread on the board. (We think it should be bigger. The over/under is 52 points.) Other big spreads are fairly predictable, such as +7.5 for the Steelers over the Philadelphia Eagles and identical odds for the San Francisco 49ers against the interception-prone Miami Dolphins. The Las Vegas Raiders are lambs to the slaughter against the Chiefs, -11.5 points. If you like gaudy scoring, TheLines.com favors the Minnesota Vikings/Seattle Seahawks shootout, with its 57.5-point over/under. There’s been some pissing and moaning about how the season would be so much better had exhibition games been played (putting starters at risk) but from what we’ve been watching it’s hella exciting and we are definitely ready for some (more) football.

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Posted in Economy, Florida, Health, Illinois, Internet gambling, Las Vegas Raiders, Law enforcement, Lotteries, Marketing, MGM Resorts International, Michigan, Sports, Sports betting, The Strip, TV, Twin River, Wall Street, William Hill | 3 Comments

Quote of the Day

Posted on October 5, 2020 by David McKee

“Other cultures are not ‘enemies’ from which we need to protect ourselves, but differing reflections of the inexhaustible richness of human life.”—Pope Francis, in his latest encyclical, Brothers All.

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

Quote of the Day

Posted on October 2, 2020 by David McKee

“As too many Americans have done this year, @potus & I are quarantining at home after testing positive for COVID-19. We are feeling good & I have postponed all upcoming engagements. Please be sure you are staying safe & we will all get through this together.”—First Lady Melania Trump.

Posted in Current, Donald Trump, Health | 1 Comment

Massacre anniversary brings accord; Stevens wants you

Posted on October 1, 2020 by David McKee

Let the healing begin. An $800 million settlement between MGM Resorts International and victims of the Mandalay Bay Massacre has been blessed by a Clark County judge. Said co-plaintiff Stephanie Fraser, “By the grace of God, myself and my family are going to be OK.” In the unlikely event anyone has forgotten, on this day in 2017, domestic terrorist Stephen Paddock sprayed death upon attendees at a Jason Alden concert, using augmented assault rifles—weapons that nobody outside the military and law enforcement should be allowed to carry. (And yes, we’ve fired them in gun ranges ourselves.) Amazingly, clueless casino personnel helped Paddock roll his arsenal into his Mandalay Bay suite and, during the melée, Las Vegas Metro froze in the hallway, afraid to move in until Paddock’s fusillade had ceased. But we digress.

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Posted in Caesars Entertainment, Cretins, Derek Stevens, Downtown, Economy, Jim Murren, Law enforcement, Mandalay Bay Massacre, MGM Resorts International, Regulation, Resorts World LV, Security, Sheldon Adelson, TV | 1 Comment

Case Bets

Posted on October 1, 2020 by David McKee

Congratulations to Plainridge Park. The Penn National Gaming racino celebrated five years in business and the renewal of its Massachusetts gaming license. The decision was unanimous. (And why not?) While Plainridge Park has seen its revenues cut into by Encore Boston Harbor, it still posts some of the best win/slot/day numbers in the Bay State. General Manager Lance George is leaving, however, moving up to Argosy Riverside in Kansas City. Subordinate North Grounsell takes his place. Plainridge will be going forward with a reduced workforce, following the Great Shutdown. Said Penn CEO Jay Snowden of the occasion, “The [Massachusetts Gaming] Commission has set high standards for the integrity of gaming and racing in Massachusetts, and we pledge to continue to uphold these principles over the next five years and beyond.”

Jottings: A Covid-19 outbreak among the Tennessee Titans has caused the first disruption of the NFL‘s regular-season schedule. Is there a prop bet for occurrences like this? … So long, Mac Davis. The singer-songwriter is best known to some of us for his “In the Ghetto” and has died at age 78. When Elvis Presley sang it, it sounded like The King has cruised through the barrio once in a limo with tinted windows. When Davis recorded it, he made it sound like he’d just come from the ghetto that moment and had something urgent to say … Park MGM reopened yesterday with a full slate of bars and restaurants. Here’s hoping the no-smoking experiment works well enough to inspire emulation … Station Casinos has raised the minimum sports bet from $5 to $10. We know sports books are a low-margin department but still …

Posted in Entertainment, Massachusetts, MGM Resorts International, Missouri, Penn National, Regulation, Sports, Sports betting, Station Casinos, The Strip | 1 Comment

Quote of the Day

Posted on October 1, 2020 by David McKee

“Debate? What debate? The event was not intended to change minds or elucidate issues. It was only a form of entertainment which did credit to neither the incumbent nor the challenger. It encapsulates all that has gone wrong with American politics.”—Singapore diplomat Bilahari Kausikan on Tuesday night’s hullabaloo in Cleveland. And that’s one of the nicer things people are saying.

Posted in Election, International | Comments Off on Quote of the Day

Barstool buy buoys Penn Nat’l; MGM’s ad blitzkrieg

Posted on September 30, 2020 by David McKee

JP Morgan analysts upped their near- and long-term cash flow estimates for Penn National Gaming, based on regional trends and sports betting. “While we recognize PENN’s impressive share price outperformance, and many sell-side firms have thrown in the towel with downgrades, we still see value and catalysts ahead,” wrote Joseph Greff. He acknowledged that there is “plenty of investor skepticism related to PENN’s ability to compete with DraftKings, Fanduel, CZR, MGM/GVC, et al., given PENN’s relative balance sheet size … but we believe this risk, to the extent it is meaningful, to compete is now diminished given ~$950m raised from its recent equity raise.” The Pennsylvania kickoff of Barstool Sports’ betting application is described as “encouraging both from a volume and marketing spend perspective”

How successful is Barstool? In its first four days of going live in the Keystone State, it “recorded 30,000 app downloads in Pennsylvania and registered 24,000 customers, with 12,000 of these customers first-time depositors … depositing an average $243.” Color us impressed. That translated into $11 million handle, 22% of which was directly driven by Barstool picks. “Across the U.S., the app recorded 180,000 downloads, 95% of which were new to PENN’s ecosystem. The app was the number one most downloaded sports betting and sports app in the country, and, importantly, these results came with zero external marketing spend.” Next up at Barstool: Michigan and Illinois. And it’s coming to market at a propitious time, as sports betting handle reaches record levels, and a plethora of collegiate and major-league sports are on the tote board. Besides, the advent of cooler weather will incentive Internet gambling, Greff believes, and he projects Penn to capture 15% of domestic market share.

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Posted in Arizona, Boyd Gaming, Caesars Entertainment, Churchill Downs, Dining, Donald Trump, Downtown Grand, DraftKings, FanDuel, Hard Rock International, Health, Illinois, Internet gambling, Iowa, Marketing, MGM Resorts International, Michigan, Nevada, New Jersey, Penn National, Pennsylvania, Problem gambling, Sports, Sports betting, Station Casinos, Wall Street | 1 Comment

Strip lags Nevada

Posted on September 30, 2020 by David McKee

Silver State gaming revenues were down 22% last month, largely retarded by the Las Vegas Strip (-39%), while locals revenues showed remarkable strength, rising 10%—particularly impressive given the high level of unemployment in Nevada. The statewide gross was $743 million: not the good old days but encouraging nonetheless. Strip slots ($174 million) were down 33% on 27% less coin-in, while baccarat plunged 55% on 18% lower wagering, meaning the casinos got their collective clock cleaned by the high rollers. All other table games were down 39% on 31.5% less betting. Inclusive of baccarat, tables grossed $139 million.

Locals slot win was aided by a weak August 2019 comparison but the haul was up 12% despite 7% lower coin-in. Wrote JP Morgan analyst Joseph Greff, “we view this report as strong considering present gaming capacity constrictions.” He continues to like Station Casinos and Boyd Gaming over Strip-dependent stocks. (The locals numbers might encourage Frank Fertitta III to take the wraps off Texas Station, Fiesta Henderson and Fiesta Rancho—and keep them firmly on the Strip-ish Palms Casino.)

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Posted in Boulder Strip, Boyd Gaming, Derek Stevens, Downtown, Economy, Lake Tahoe, Mesquite, MGM Resorts International, Mississippi, Nevada, North Las Vegas, Reno, Station Casinos, The Strip, Wall Street, Wendover | Comments Off on Strip lags Nevada

Vegas’ mixed message; China puts the squeeze on Macao

Posted on September 29, 2020 by David McKee

Is the Las Vegas Strip coming back? Yes and no, to judge by hotel rates for the October 18-24 period. They’re 50% 0ff last year’s but with a severe dichotomy between weekdays and weekends. For instance, Las Vegas Sands (even without Palazzo midweek) is -63% on weekdays, -15% on weekends. Wynncore is almost identical: -63% weekdays, -16% weekends. Caesars Entertainment‘s midweek numbers are a little more respectable—49% down—but it’s 30% off the pace on weekends, while MGM Resorts International is -56% midweek and -31% weekends. Even so, at least according to MGM, it’s cheaper to keep a hotel open, even at greatly diminished occupancy, than to shutter it. But with no conventions on the schedule, you can see how badly that’s hurting the resorts across the board, even Wynn Resorts, which only recently starting vying for conventioneers. Can the Strip get by on leisure travelers? It has no choice.

Indicative of this, Caesars announced the Oct. 8 reopening of Planet Hollywood—with weekend-only hotel bookings. At least the spa and (more importantly) the William Hill sports book. Meanwhile, it’s official that Virgin Hotel is going to open on Jan. 15. It’s been the worst-kept secret in town, after Hilton Curio‘s Web site blabbed about it a couple of months back. This is hardly the end of the world. Far from it. The New Year’s Eve hubbub having died down, Virgin will have the headlines to itself and a clearer runway to establishing a Vegas identity. Besides, even if the brand equity is unclear at this point, there should be plenty of novelty factor going for Virgin, bringing a solid first wave of business. Also, convention ought to be coming back at that point and it’s hoped that Coronavirus will have abated. (Perhaps the biggest imponderable of all.) Virgin will be replete with exotic eateries, so it will be a must-visit for the foodie crowd, not to mention everybody curious to see what the new look of the former Hard Rock Hotel will be.

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Posted in Architecture, Barstool Sports, Caesars Entertainment, China, Conventions, Economy, Health, Kazuo Okada, Las Vegas Sands, Macau, MGM Resorts International, Penn National, Pennsylvania, Planet Hollywood, Problem gambling, Regulation, Rush Street Gaming, Sports betting, The Strip, Tourism, Virgin Hotels, Wall Street, William Hill, Wynn Resorts | 1 Comment

Cretins amok in Alabama; Caesars: $2.7B for William Hill

Posted on September 29, 2020 by David McKee

There’s stiff competition for Troglodyte of the Year but Alabama Attorney General Steve Marshall has staked a prohibitive claim. He’s on a crusade to shut down the state’s three private-sector casinos and he won an important victory last week. The state Supreme Court ruled that Marshall could prosecute Victoryland, White Hall Entertainment and Southern Star Entertainment as “public nuisances.” This renewed prosecution of a 2017 case, blocked by the lower courts, exposes Gov. Kay Ivey‘s alleged openness to gambling expansion as the sham we suspected it to be. Marshall is going to proceed forthwith to try and shut down Victoryland and its brethren (again), howling, “For too long, these individuals, businesses, and even elected officials have flagrantly violated Alabama’s laws.”

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Posted in Alabama, Architecture, Caesars Entertainment, Cretins, Marketing, MGM Resorts International, Sports betting, The Strip, Transportation, Tribal, Virginia, Wall Street, William Hill | 1 Comment

Quote of the Day

Posted on September 29, 2020 by David McKee

”Fight for the things that you care about, but do it in a way that will lead others to join you.”—Ruth Bader Ginsburg.

Posted in Current | Comments Off on Quote of the Day

Quote of the Day

Posted on September 27, 2020 by David McKee

“Where did they find these people—the seediest bar in New Jersey?”—my wife, reacting to a clip from Love Island, currently broadcasting from The Cromwell. Bad call, Caesars Entertainment.

Posted in Caesars Entertainment, Cretins, TV | Comments Off on Quote of the Day

Caesars here, Caesars there, Caesars everywhere

Posted on September 25, 2020 by David McKee

Caesars Entertainment got a vote of confidence from JP Morgan analyst Daniel Politzer today, largely on the strength of its regional portfolio, as well as its potency in the sports-betting sphere. Regional trends were described as “better than expected,” and companies with exposure in the sports betting and Internet gaming markets are being looked upon favorably by Wall Street. Where Politzer thought regional markets would be down -20%-30% in midsummer they’re only 10% off last year’s pace. “Sports betting/iGaming has emerged as a key part CZR’s investment thesis, and we see various positive catalysts in the coming months: (1) record sports betting revenue in September, (2) resumption of college football in the SEC, Big 10, and Pac-12, (3) legislative sessions/referendums in several states to legalize sports betting, and (4) iGaming could accelerate given colder weather and crowd avoidance during cold/flu season.” The only downside was that destination markets like the Las Vegas Strip, Atlantic City, Reno, Laughlin and New Orleans “are all still seeing soft demand.”

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Posted in Atlantic City, Caesars Entertainment, Eldorado Resorts, Election, Entertainment, history, International, Internet gambling, Laughlin, Louisiana, Marketing, Maryland, Reno, Sports, Sports betting, The Strip, TV, Wall Street, William Hill | 1 Comment

Derek Stevens, man of the year?; ‘Historical racing’ kneecapped

Posted on September 25, 2020 by David McKee

While we wait for own interview with Circa owner Derek Stevens to appear in Casino Life magazine (soon, we promise), we’ll shamelessly piggyback off David Ross‘ excellent Stevens profile in Global Gaming Business. Ross digs up some interesting architectural details about Circa. Like Aria before it, it will have its HVAC system under the floor, rather than in the ceiling. This saves both BTUs and money, as it requires a lot more energy to push conditioned air down than to let it emerge from beneath you. Stevens was also ahead of the Covid-19 curve when he planned an intensive UV-filtration system for Stadium Swim, which promises some of the cleanest pool water in Las Vegas (a relative compliment, we fear, standards being so low, but we praise Stevens for his initiative).

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Posted in Caesars Entertainment, Canada, Charity, Churchill Downs, CityCenter, Colony Capital, Conventions, Cosmopolitan, Derek Stevens, Diversity, Downtown, Election, Environment, Health, IGT, Kentucky, Scientific Games, Sports betting, Technology, Tourism, Wall Street | Comments Off on Derek Stevens, man of the year?; ‘Historical racing’ kneecapped