Storm warnings

Our beloved Postal Service has advised people (quietly) that it may not be able to continue as a going concern: “However, the Postal Service remains concerned that this measure will be insufficient to enable the Postal Service to withstand the significant downturn in our business that could directly result from the pandemic. Under a worst case scenario, such downturn could result in the Postal Service having insufficient liquidity to continue operations.” In addition, postage on mail-in ballots has been hiked from 22 cents to $0.55 AND, in a policy dictated by Postbungler General Louis DeJoy, election ballots will be treated as bulk mail, i.e. very low priority.

What has this to with gambling? Sports ballot is on the ballot in Maryland (definitely) and California (probably). Remember how it just squeaked through by the very slimmest of majorities in Colorado two years ago? A USPS collapse or suppression of vote-by-mail could damn gaming ballot measures in multiple states, risking a reprise (or worse) of the Colorado situation. Speaking of which … the Rocky Mountain State has a ballot question coming up which would raise loss limits (the lowest in the U.S.) and allow new games. We don’t want to see that going down to defeat, do we?

Posted in California, Colorado, Economy, Election, Entertainment, Health, Maryland, Sports betting, The Mob, Transportation, TV | 3 Comments

The big enchilada

“The Biggest Gaming Opportunity Since Riverboats in the Early ’90s.” That’s how JP Morgan gaming analyst Joseph Greff, a man not given to hype, characterized i-gaming and sports betting today. He described them as “as an emerging and exciting area of growth within US Gaming, with potential to drive significant multiple expansion and value creation for operations within our coverage universe.” How much value? Greff ascribes $17/share of Caesars Entertainment‘s worth of sports betting and Internet wagering. It’s even better for Penn National Gaming: $18/share. Sports betting “is highly competitive and should have a longer road to profitability, while iGaming is generally profitable for operators right now.” Furthermore, “near-term success drivers include brand recognition/customer engagement, first mover advantages, willingness to spend on marketing/customer acquisition, and media/league partnerships.” Said Greff, “the potential growth of this industry should result in emerging companies seeking access to capital … and online/digital companies entering the gaming industry.”

Sports betting currently reaches 41% of Americans, being legal in 23 states and operational in 19 of those. In states where it is online, sports betting via the Internet is overwhelmingly dominant in market share. Greff projects $7.6 billion in sports-betting revenues by 2025 (it was $900 million last year, with four states accounting for almost all the action). “Our $7.6b forecast assumes 13 additional states legalize sports betting over the next several years, bringing the total to 35 (~70%+ of US adult population), though we note this is highly subjective.” Part of that assumption is dysfunctional California, so that’s a mighty big ‘if.’

Posted in Caesars Entertainment, California, Colorado, Cosmopolitan, DraftKings, FanDuel, Golden Nugget, Illinois, Indiana, Internet gambling, Iowa, Isle of Capri, Las Vegas Sands, MGM Resorts International, Michigan, MTR Gaming, Palms, Penn National, Regulation, Rush Street Gaming, Silverton, Sports betting, The Strip, Tropicana Entertainment, Wall Street, William Hill | 2 Comments

Atlantic City impresses in July

It reopened in somewhat raggle-taggle fashion but Atlantic City is back and did rather better in July than Las Vegas in June (the last month for which we have data, see video below). Borgata made a very delayed re-entry into the market, so we will discount its performance for now. Trends at the Caesars Entertainment quartet were a 31% slide in gross gaming revenue (and slots) and 27% less won at the tables. It outperformed the Atlantic City market as a whole, which was down 47%. But wait, the glass is even more half-full: Sports betting leapt 65%, led by Meadowlands with 48% of market share and Resorts Digital with 28%. Revenues were a very impressive $29.5 million. Internet gambling may be a hard habit for the Garden State to break: Online revenues vaulted 123% to $87.5 million. No prizes for guessing the dominant performer: Golden Nugget with 36% of market share, followed by Resorts Digital again. Remarked analyst Eric Ramsey, “Especially after the last few months, it’s a sobering thought to imagine where the state’s gaming industry would be without online gambling.”

Posted in Caesars Entertainment, Charity, Economy, Entertainment, Golden Nugget, Hard Rock International, Internet gambling, MGM Resorts International, Mohegan Sun, New Jersey, Ocean Resort, Sports, Sports betting, The Strip, Tourism, Transportation, Virginia | 2 Comments

Quote of the Day

“If they don’t give you a seat at the table, bring a folding chair.”—Shirley Chisholm, first Black presidential candidate in American history.

Posted in Diversity | Comments Off on Quote of the Day

Quote of the Day, revisited

“We have contained [coronavirus]. I won’t say airtight but pretty close to airtight.”—administration official Lawrence Kudlow, on CNBC, February 25, 2020. 164,329 deaths later …

Posted in Health, history | 1 Comment

Indiana, Missouri, Ohio rebound, Illinois not so much

It was back to business as almost normal in Indiana last month. The Hoosier State was only 5.5% 0ff its July 2019 pace, grossing $171 million. (They’ve been open since June 15.) The relative novelty of table games—$5 million—at Indiana Grand and Hoosier Downs didn’t hurt. Nor did an extra weekend day. A rising tide did not lift all riverboats. For instance, Blue Chip (pictured) slid 30.5% to $9 million. Top performer by far was Horseshoe Hammond ($30 million), down 7.5%. The biggest recovery—27%—was at Ameristar East Chicago, which brought in $21 million. The two Majestic Star boats did quite respectably: $7 million (-11%) at Majestic Star I and $4.5 million (-6.5%) at Majestic Star II. Down at French Lick Resort, receipts were $5.5 million, a 34% tumble.

In the southern tier, Indiana Grand led with $23 million, up 6.5%. Caesars Southern Illinois followed with $18 million, off only 2.5%. Belterra Resort slipped 15% to $8.5 million, Tropicana Evansville was down 13% to $11 million, Rising Star‘s $4 million was a 7% slippage while Hoosier Downs grossed almost $18 million, just 2.5% off the pace. Hoosier sports betting was at its best since March, with $71 million in handle. That’s despite only eight days of major-league sports. Had their been a full month of play, books would easily have met or exceeded the expected $90 million. Revenue came in just under $7 million. DraftKings (Ameristar) led online wagering with $33 million, followed by FanDuel (Blue Chip) with $24 million and everybody else very far behind.

Posted in Boyd Gaming, Caesars Entertainment, Century Casinos, Churchill Downs, Dan Gilbert, DraftKings, FanDuel, GLPI, Hard Rock International, Illinois, Indiana, MGM Resorts International, Missouri, Ohio, Penn National, Sports betting | 1 Comment

Culinary booted from Boulder

We have obtained a memo on Boulder Station letterhead that reads, in part, “Yesterday [August 6] we learned that a majority of Culinary Team Members signed a petition saying they DO NOT wish to be represented by the Culinary Workers Union Local 226 and Bartenders Union Local 165 any longer. We have informed the Union that, in accordance with our Team Members’ wishes, we will no longer recognize or bargain with the Union. We respect the decision of our Team Members and we certainly appreciate the confidence the Team Members have shown us. We look forward to having the same direct relationships with this group of Team Members as we have had with other Team Members.” The letter is signed by General Manager Alan Trantina. What the Culinary Union did to merit this kick in the pants from its constituents is unclear but something severe would appear to be in order.

Posted in Architecture, Culinary Union, Derek Stevens, Downtown, Health, Las Vegas Sands, Macau, MGM Resorts International, Sports, Station Casinos, Tourism, Wall Street | 1 Comment

Quote of the Day

“There is clearly blatant discrimination taking place in the gaming industry against women. The men that lead can tell story after story of how enlightened and fair they are all day in speeches and at conferences, yet in action after action they will continue to appoint and reward people who are basically just like them.”—former gaming executive and regulator Richard Scheutz.

Posted in Diversity | Comments Off on Quote of the Day

When Saharas attack; Trump blasts Adelson

Don’t get on Sahara owner Alex Meruelo‘s bad side. That seems to be the moral of a saga unfolding on the Las Vegas Strip. VitalVegas author Scott Roeben is being sued for $15,000 in lost business, punitive damages, attorneys’ fees plus a gag order after reporting scuttlebutt that the Sahara was gone to close for good this autumn. Meruelo’s suit alleges malice aforethought, always difficult to prove, asserting that “Mr. Roeben, through Vital Vegas, seemingly takes joy in continuing to make false claims.” Meruelo was also irked at a Roeben report that high-roller perks at the Sahara had been revoked. However, he must think the VitalVegas closure report was well-sourced, since 10 John Does (Sahara employees perhaps?) are cited as codefendants. An investigation into their identities is implied to be ongoing. (Roeben attributes his information to “industry sources familiar with the long-troubled casino.”)

Posted in Alex Meruelo, Donald Trump, Health, Lucky Dragon, MGM Resorts International, Politics, Sahara, Sheldon Adelson, Transportation | 3 Comments

Quote of the Day

“I have become my own version of an optimist. If I can’t make it through one door, I’ll go through another door—or I’ll make a door. Something terrific will come no matter how dark the present.”—Indian poet Rabindranath Tagore.

Posted in Current | Comments Off on Quote of the Day

Quote of the Day

“We wouldn’t be in this mess of uncertainty about the coming school year if the federal government had managed to control the virus; any glimmer of leadership from the president would have gone a long way. Grievances and fear are understandable … When some of my husband’s students told him that they had continued working as cashiers throughout the spring and summer, he said, ‘Wow, that’s so courageous of you.’ He feels that he doesn’t really have anything to show for himself, and he looks forward to the time when he will. Now, contemplating the possibility of teachers striking, he says, ‘Bowing out wouldn’t be a good example to set for our students.'”—ICU nurse Kristen McConnell.

Posted in Health | Comments Off on Quote of the Day

Pinching pennies at Caesars; Glitters at Golden

Anthony Rodio‘s multi-million-dollar revamp of Bacchanal Buffet may well have been for naught. On yesterday’s earnings call the Tom Reeg administration floated the idea of closing all buffets at Caesars Entertainment properties. Expect comps to be sweated until they bleed and to get fewer promotions. Reeg promised that, too. Reported 8 News Now, “Caesars says it has learned lessons that some of its competitors seem to want to ignore. Some things may never return, because in an uncertain future, resorts cannot afford any part of a business that doesn’t turn a profit.” Increases in convention business were described as strong (six months out), including a number of new customers. Caesars is still operating at semi-skeletal levels, with 42% of the workforce idled and three Strip resorts dark. $14.7 billion in debt is offset by $7 billion in liquidity, so Caesars can eke out this pandemic a good while longer.

Posted in Arizona, Caesars Entertainment, Colorado, Dining, Donald Trump, Economy, Election, Florida, Golden Gaming, Hard Rock International, Health, International, Internet gambling, Louisiana, Marketing, Mississippi, Nevada, Penn National, Pennsylvania, Problem gambling, Seminole Tribe, The Strip, Tourism, Tribal, Wall Street, Wynn Resorts | 1 Comment

Quote of the Day

“At the risk of sounding overly stern: When more than 32,000 of your fellow citizens have died over the course of a single season, you have not won any sort of ‘victory.’ All you have done is come out the other side of a devastating tragedy. Instead of boasting, you ought to be figuring out what you could have done better so that you can do better in case—God forbid—there is a next time.”—Noah Rothman on New York Gov. Andrew Cuomo‘s management of the Covid-19 pandemic.

Posted in Health, New York | Comments Off on Quote of the Day

Maryland rebounds; Penn wows Wall Street; Trump to play Lucky Dragon

In a near-miraculous development, Maryland gambling revenues were only 6% off the pace last month. Between cabin fever and the belated delivery of those $1,200 stimulus checks, we’re not entirely surprised that Free State punters had both the desire and the money to have a flutter. An extra weekend day didn’t hurt either. MGM National Harbor grossed $52 million (-14%) with slots down 15% and tables off 12%. Since table games are taxed at a far lower (and fairer) rate, MGM execs aren’t exactly crying in their beer. Even though it finished second, Maryland Live was the real winner, up 4.5% to $51.5 million. Other beneficiaries of the July breakout were Hollywood Perryville (+7.5%, $7 million) and Rocky Gap Resort (+6%, $5.5 million). Hard-luck Horseshoe Baltimore plunged 18.5% to $16 million—even desperate gamblers have standards. That leaves Ocean Downs, down 5% to $8 million.

Over in West Virginia, July numbers were unavailable for breakout but the state’s casino business is down 24% over the past four months, evenly divided between tables and slots. Charles Town Races had a slightly harder time of it, seeing a 25% erosion at slots and 29% at tables.

Posted in Alabama, Arizona, Boyd Gaming, Caesars Entertainment, Churchill Downs, Cordish Co., Donald Trump, Election, Florida, Georgia, Golden Gaming, Health, Internet gambling, Lotteries, Lucky Dragon, Maryland, MGM Resorts International, Mississippi, Nevada, New Mexico, New York, North Carolina, Penn National, Pennsylvania, Racinos, Sports, Sports betting, Texas, The Strip, Tilman Fertitta, Tribal, TV, Wall Street, West Virginia | 2 Comments

Sahara misbehavior; Tilman Time; Culinary caves to Big Gaming

We miss the old Sahara.

Alex Meruelo has new troubles. He’s in deep fertilizer with the Nevada Gaming Control Board over safety violations at the Sahara. Meruelo’s facing a two-part disciplinary complaint. In one instance, the Sahara hosted a 153-person convention when state rules explicitly ban gatherings of over 50 people. Evidently somebody at the Sahara has trouble with math. Then there’s this, as reported by Howard Stutz, “On June 16, the Sahara is alleged to have allowed four patrons to stand on the side of a craps table when only three of the customers were playing in the game. The same day, state gaming agents said they witnessed a person standing between two players at a blackjack table and not participating in a game. Also, the agents said they witnessed five patrons surrounding a slot machine player and not participating in gaming activity.” Sahara management chalked up the trouble to a “misunderstanding” and said they’ve cracked down on the misbehavior on the casino floor.

Posted in Alex Meruelo, Caesars Entertainment, Cretins, Culinary Union, Donald Trump, Economy, Health, MGM Resorts International, Ohio, Politics, Real Estate, Regulation, Reno, Sahara, Sports, Station Casinos, Tilman Fertitta | Comments Off on Sahara misbehavior; Tilman Time; Culinary caves to Big Gaming

Quote of the Day

“In general, our core customers have not been deterred by the social distancing measures, limited amenities or masking requirements … We intend to keep this philosophy in place after the crisis is over. We think largely that many of the costs will stay out. [Boyd] will not simply return to the old way of doing business.”—Boyd Gaming CEO Keith Smith.

Posted in Boyd Gaming, Economy | 5 Comments

New hope for Station; Raider Nation exiled

Station Casinos reported second-quarter results yesterday and JP Morgan analyst Joseph Greff came away “encouraged” and “impressed.” He wrote of “less bad results in April and May and much better positive [cash flow] generation in June.” How so? In its first month of resumed operations, Station generated $100 million in net revenue. Closed properties were only a “modest” drag on the numbers. “July is reported to be similar to June (though seasonally July is not as strong as June) with revenues benefitting from being ‘one of the only games in town,’ with limited national sports to watch and closed bars, theaters and nightclubs in LV.” Marketing is down, as are salaries (7K fewer employees). Greff predicts a “leveling off” in the second half of 2020, explaining, “Some of the positive spend and visitation activity in June and July is likely not sustainable (think of recent unemployment benefits, which is probably one of the reasons why younger versus older casino patrons were stronger).” On the other hand, lower levels of casino employment cut into Station’s player base.

The Wildfire properties are on hold, according to Greff, given Gov. Steve Sisolak‘s policy on bars. But most other Station casinos are back on line. Visitation is trending down but individual spending is up, as is coin-in. Las Vegas operations suffered 78% compared to 2Q19 and Native American management income was down to $6 million, a 75% slippage. Oh, and CEO Frank Fertitta III floated the possibility that the Palms, Texas Station, Fiesta Henderson and Fiesta Rancho might never reopen, just en passant. Greff didn’t see fit to mention it but, if economists like John Restrepo are right, the Las Vegas economy is headed for a major realignment.

Posted in China, Economy, FanDuel, Golden Gaming, Health, IGT, Las Vegas Sands, Macau, Massachusetts, MGM Resorts International, Penn National, Politics, Sports, Sports betting, Station Casinos, Terry Caudill, The Strip, Tourism, Wall Street, Wynn Resorts | 1 Comment

Quote of the Day

“Many on the right are enraged at any suggestion that their actions should take other people’s welfare into account … What the coronavirus has revealed is the power of America’s cult of selfishness. And this cult is killing us.”—Paul Krugman

Posted in Current | Comments Off on Quote of the Day

Cuomo stiff-arms casinos; MGM’s blame game

Tioga Downs owner Jeff Gural was able to get some face time with Global Gaming Business … which is more than he’s been able to do with New York State Gov. Andrew Cuomo (D), much to Gural’s chagrin. He’s chafing at the uneven playing field whereby the Empire State’s tribal casinos are back to business as usual but his and other private-sector ones remain closed. “We’ve been unable to convince the governor that it’s actually safe. We don’t disagree with the governor’s concern about not having a spike in opening things up, but as you know, we have not seen that elsewhere—including in New York City,” Gural told GGB. “[Cuomo] has full control over what we’re doing, and no control over the Indian casinos. I’m fully convinced we’re safer, but haven’t been able to convince the governor, who has gotten the numbers down. It’s problematical.” Promising strict safety protocols, should he be allowed to reopen, Gural added, “It seems hard to say it makes any sense when Vernon Downs is closed and [tribal] Turning Stone, which is five miles away, is open.”

Posted in Caesars Entertainment, Churchill Downs, Economy, Full House Resorts, Genting, Health, Illinois, Indiana, International, Kentucky, Las Vegas Sands, Massachusetts, MGM Resorts International, New York, Politics, Rush Street Gaming, Sports betting, The Strip, Tribal, Wynn Resorts | Comments Off on Cuomo stiff-arms casinos; MGM’s blame game

Big Gaming declares war on employees

With Big Gaming’s generals itching to sell out their foot soldiers (i.e., employees), it’s interesting—to say the least—that we’ve heard nothing from the Culinary Union or Unite-Here President D. Taylor except a loud chorus of … crickets. They’re rolling over and playing dead for the HEALS Act, which would grant blanket immunity to corporations against Covid-19-related carelessness, and it’s difficult to see the realpolitik at work. Incidentally, in addition to American Gaming Association President Bill Miller bashing away on Capitol Hill, the industry has opened up a second front in the Nevada Lege. The Nevada Resort Association is shrieking like an old maid about “frivolous litigation” (translation: any lawsuit that is filed against you) and seeking “targeted and limited safe harbor from liability for companies that implement strict public health guidelines related to the transmission of COVID-19.” Failure to accede “threatens the resort industry’s continued operations.” Yes, it’s Doomsday for Nevada casinos, according to the NRA. Wailed one (wisely) anonymous Strip exec, we face “disaster for the economy and Nevada’s workers, if businesses—large or small—were faced with the choice of operating responsibly or having to close in the face of litigation.” Since, in the words of the Las Vegas Sun, Gov. Steve Sisolak (D) has said the upcoming special session “will include measures to prevent businesses from taking further economic hits during the pandemic,” we can presume he’s already in the bag.

Posted in AGA, Caesars Entertainment, Conventions, Culinary Union, IGT, International, M Resort, Marketing, MGM Resorts International, Nevada, Politics, Unite-Here | 2 Comments