Culinary: Do more; Pent-up demand?

Posted on May 6, 2020 by David McKee

Although Nevada regulators seem to think that companies like Las Vegas Sands and Wynn Resorts are going too far with their reopening protocols the Culinary Union begs to differ. Noting that 15 Culinary members or family members have died of Coronavirus, Secretary-Treasurer Geoconda Argüello-Kline advanced the local’s own prescriptions for resumption of business. (It should be noted that companies which flout the Nevada Gaming Commission‘s relatively toothless set of rules will not be fined. Way to go, NGC.) In addition to supporting temperature screenings of customers, the Culinary wants … Continue reading →

Posted in Culinary Union, Economy, Health, Las Vegas Sands, Nevada, Regulation, Unite-Here, Wynn Resorts | 2 Comments

Vegas bingo on death watch; Nevada regulators dither

Posted on May 6, 2020 by David McKee

Bingo is such a staple of the Las Vegas locals casino that it seems unimaginable that it would go the way of the buffet and the dodo. But such may be the case. VitalVegas author Scott Roeben says he is “told reliably” that Texas Station‘s bingo room is a goner and others may follow. According to Roeben, bingo is a loss-leader that brings in $1K/day. Although stale air and an elderly player base could make bingo rooms vectors for Covid-19, they’re also some of the easier venues in casinos in which social distancing could be enforced. So we’re going with Roeben’s theory that this is an economically motivated move. One thing’s for sure Continue reading →

Posted in Australia, Boyd Gaming, Crown Resorts, Downtown, Entertainment, Hawaii, Health, Idaho, James Packer, Melco Resorts & Entertainment, MGM Resorts International, Technology, Texas, The Strip, Tribal | 1 Comment

Quote of the Day

Posted on May 6, 2020 by David McKee

“The good news, if it pans out: Pharmaceutical giant Pfizer and the German company BioNTech announced this morning that they have started human trials in the US of a potential [Coronavirus] vaccine, and if the tests are successful, and the feds give a rush approval, it could be ready by September. Of course, some steps will have to be skipped along the way, making some worry about both its safety and efficacy. We’ll see. WWFD? (What Would Fauci Do?)”—from the Boston Globe’s “Fast Forward” newsletter.

Posted in Current, Health | 1 Comment

Colorado sports betting a hit; REIT bides its time

Posted on May 5, 2020 by David McKee

Sports betting came out of the gate strong in Colorado. One of the surprises was the amount of handle on the Los Angeles Lakers. Said DraftKings odds guru Johnny Avello, “One of the things I did find interesting was the Lakers were one of the higher team bets as far as handle. Obviously, you have some Lakers fans in that area.” Sorry, Denver Nuggets. However, punters in the state are mad for the Denver Broncos and their chances in an (iffy) NFL season. (Although the Dallas Cowboys racked up an impressive amount of action.) They led in handle and sheer number of bets. Similarly, the Colorado Rockies were favored by fans to win the World Series. Said Avello, “You can’t even compare it to Continue reading →

Posted in Baseball, Boyd Gaming, Colorado, DraftKings, e-sports, Eldorado Resorts, FanDuel, GLPI, Health, Horseracing, Illinois, Louisiana, Maryland, Mesquite, Pinnacle Entertainment, Sports, Sports betting, Wall Street | Comments Off on Colorado sports betting a hit; REIT bides its time

Everybody out of the pool!; Lean times in Indian Country

Posted on May 5, 2020 by David McKee

We were overly optimistic on when Nevada casinos can reopen. Gov. Steve Sisolak (D) has postponed that move until phase three or four of his four-step plan … which is also contingent on a two-week decline in new Coronavirus cases. If each phase consists of, say, a two-week period, that means casino reopenings would not take place until June 15 or July 1. There goes Memorial Day weekend. (Treasure Island is already SOL.) Sorry, Wynn Resorts. Now you can see why MGM Resorts International executives—prescient, it would seem—were modeling for a June resumption of business. For casino workers whose pay runs out May 15 or 31, a month of hardship looms. And even when casinos do reopen, it will be without nightclubs or that petri dish of Covid-19, pool parties. (We recommend reopening those in Phase XXVI or so.) You’ll be able to lounge by the pool, however, provided that you observe social distancing. In other departments, restaurants will have to disperse seating and casino floors will not be permitted to Continue reading →

Posted in Economy, Entertainment, Galaxy Entertainment, Hard Rock International, Health, International, Internet gambling, Macau, MGM Resorts International, Michigan, Mohegan Sun, Nevada, New Jersey, Regulation, Tribal, World Series of Poker, Wynn Resorts | Comments Off on Everybody out of the pool!; Lean times in Indian Country

Quote of the Day

Posted on May 5, 2020 by David McKee

“One of the things that’s so hard right now is the uncertainty about the future. I think a year from now we’ll have more information. After we pass the time of our grief and sadness, and our anxiety wanes a little, things will be better.”—professional painter Deborah Peeples on life during Coronavirus.

Posted in Current | Comments Off on Quote of the Day

Churchill Downs curbs plans; Murren’s big payday

Posted on May 4, 2020 by David McKee

In its 1Q20 earnings call Churchill Downs announced some significant retrenchments. Although the company is comfortably liquid ($701 million in the kitty) it’s put four expansions on hold: Rivers Casino Des Plaines, an enlargement of Miami Valley Gaming, a $300 million hotel at its titular racetrack and a $109 million “historical racing” parlor at Turfway Park. “Thus, we see this as a temporary pause in project capex spend, not an outright cancellation,” wrote JP Morgan analyst Daniel Politzer. The Kentucky Derby has been rescheduled for September and will be run with fans in the stands. “In a dire scenario where local guidelines prohibit public sporting events, we could hypothetically envision a scenario whereby CHDN would conduct the race in adherence with social distancing guidelines or, potentially Continue reading →

Posted in Boyd Gaming, Caesars Entertainment, Churchill Downs, Economy, Health, Horseracing, Illinois, Internet gambling, Jim Murren, Las Vegas Sands, Massachusetts, MGM Resorts International, Regulation, Sheldon Adelson, Station Casinos, Wall Street, Wynn Resorts | 1 Comment

Shakeup at MGM, layoffs at Station

Posted on May 4, 2020 by David McKee

In a late-Friday night of the long knives, MGM Resorts International let go four property presidents. The official nomenclature is “laid-off” but we strongly suspect, given MGM’s history, that this prefaces a streamlining and centralization of authority. Out the door were Randy Morton (Bellagio), Cindy Kiser-Murphy (New York-New York), Cliff Atkinson (Luxor) and Eric Fitzgerald (Excalibur). Along with them went an unspecified number of high-level executives. According to Josh Swissman, co-founder of think tank The Strategy Organization, regional property heads are next on the chopping block. “In the short term, it makes sense because of the phased opening approach and because of the … lower demand that everyone’s expecting,” Swissman told the Las Vegas Review-Journal.

As Global Market Advisors pundit Brendan Bussman told the paper, “This continues to show the pressure that Continue reading →

Posted in Boyd Gaming, California, CityCenter, Culinary Union, Economy, Las Vegas Sands, Macau, Massachusetts, MGM Resorts International, Penn National, Phil Ruffin, Station Casinos, The Strip, Wynn Resorts | 5 Comments

Quote of the Day

Posted on May 4, 2020 by David McKee

“Number one rule of Wall Street. Nobody … and I don’t care if you’re Warren Buffet or if you’re Jimmy Buffet. Nobody knows if a stock is gonna go up, down, sideways or in fucking circles. Least of all, stockbrokers, right?”—Mark Hanna (Matthew McConaughey) in The Wolf of Wall Street, written by Terence Winter.

Posted in Wall Street | Comments Off on Quote of the Day

Quote of the Day

Posted on May 2, 2020 by David McKee

“And above all else, this whole scheme is designed to screw workers. Screw them. Force them into a no-win situation where they have to literally risk their lives and the lives of others, or walk away without a dime of the unemployment pay they earned. Meanwhile, corporations are sitting on loans that were supposed to go to providing payroll … just guess where that money will end up.”—Mark Sumner, on Iowa Gov. Kim Reynolds‘ back-to-work (or else) order.

Posted in Health, Iowa | 4 Comments

Maddox gets ants in his pants; Sports start to stir

Posted on May 1, 2020 by David McKee

As part of the Business Roundtable at the White House, CEO Matt Maddox got to stump for Wynn Resorts‘ mid-pandemic reopening protocol. Maddox said that (amazingly) University Medical Center facilities “don’t have enough people to test. So I’ve signed a deal with them to allow all Wynn employees to get tests, anytime for free, and they’re going to set up on-site testing … So we’re ready and I’m encouraging our state that we need to begin a phased approach and get back to business.” Maddox has been busy in his unwonted spare time and has his own ideas about how Nevada should resume activity (which are rather antsier than Gov. Steve Sisolak‘s). First, reopen small restaurants, retailers, and golf and tennis courts this week, and use those as guinea pigs for whether Covid-19 cases increase. “If we’re inside those benchmarks in three weeks, then on Memorial Day I would hope that Continue reading →

Posted in Alex Meruelo, Caesars Entertainment, Culinary Union, Economy, GLPI, Health, Reno, South Korea, Sports, Stanley Ho, The Strip, Wynn Resorts | 2 Comments

Quote of the Day

Posted on May 1, 2020 by David McKee

‘I think sometimes what I feel is better than what I think, unfortunately or fortunately.”—Donald Trump, on economic recovery.

Posted in Donald Trump, Economy | 3 Comments

Fauci on sports; Churchill Downs “on track”

Posted on April 30, 2020 by David McKee

Bad news, sports bettors. Given the absence of widespread testing for Coronavirus, Dr. Anthony Fauci is backpedaling on his projections that professional sports could resume this year. (As Fauci has said elsewhere, a model is just a model; when you get new data it changes.) “If you can’t guarantee safety, then unfortunately you’re going to have to bite the bullet and say, ‘We may have to go without this sport for this season,’” Fauci told the Boston Globe. National leaders are in various states of aggressiveness on this issue, ranging from New York Gov. Andrew Cuomo (yes), California Gov. Gavin Newsom (maybe) to Los Angeles Mayor Eric Garcetti (no). “If we let our desire to prematurely get back to normal, we can only get ourselves right back in the same hole we were in a few weeks ago,” Fauci told the Globe, adding that major leagues would have to be prepared to respond were there a new spike in Covid-19 cases.

Fauci’s nostrums for resumption of sports include: Continue reading →

Posted in Australia, Baseball, Churchill Downs, Crown Resorts, Economy, GameCO, Health, International, Internet gambling, Kentucky, Lawrence Ho, Lotteries, Marijuana, Massachusetts, Melco Resorts & Entertainment, Missouri, Nevada, Pennsylvania, Regulation, Scientific Games, Sports, Technology, Wall Street, Wynn Resorts | 2 Comments

Vegas: Welcome to the new normal

Posted on April 30, 2020 by David McKee

Phil Ruffin may have jumped the gun with that May 15 reopening date for Treasure Island. Gov. Steve Sisolak (D), without specifying a quarantine-lifting date, has extended a modified version of the Nevada lockdown into May. “We just have not reached exactly where we want to get in the downward trajectory. Our statistics have plateaued,” said Sisolak on Good Morning America. At present, the Silver State has just shy of 5,000 Coronavirus cases and 248 deaths. On the flip side, hospitalizations and ICU use are declining, according to the governor. He also threw a bone to the retail industry, easing some restrictions on how it can do business. However, there’s little comfort here for the gaming industry, which would probably be wise to follow Wynn Resorts‘ lead and presume that business will return to some (pallid?) sense of normality around Memorial Day. In a surprisingly radical piece, the National Review questions whether it is feasible—or even sane—to reopen even a circumscribed Strip.

Las Vegas Sands has one-upped Wynncore with an 800-step (!) reopening protocol that includes multiple temperature checks (if you flunk the first, you get Continue reading →

Posted in Aristocrat, California, Downtown, Downtown Grand, Health, International, Las Vegas Sands, Macau, MGM Resorts International, Nevada, Phil Ruffin, Regulation, Sociedade de Jogos de Macau, Technology, Tribal, TV, Wynn Resorts | 1 Comment

Strip clocked, locals stronger; Montana reopens first

Posted on April 30, 2020 by David McKee

Nevada casinos won $618 million in a Covid-19-truncated March, with the Las Vegas Strip leading the plunge with a 46% fall to $300 million. Las Vegas locals play was remarkably strong under the circumstances, down only 20.5%, although that number may have been fattened by some end-of-February slot win (the month having finished on a weekend). Statewide, casinos were off 40%. For the first quarter the Strip has been doing the worst of the the three major segmentations, down 12%. Baccarat, however, did relatively well in March, down 17% on 25% less wagering (good luck for the house), although non-baccarat table games on the Strip were catastrophic, plummeting Continue reading →

Posted in Atlantic City, Boulder Strip, Boyd Gaming, Donald Trump, Downtown, Economy, Election, Golden Gaming, Health, Internet gambling, Lake Tahoe, Laughlin, Mesquite, Nevada, North Las Vegas, Penn National, Pennsylvania, Reno, The Strip, Wall Street, Wendover, William Hill | Comments Off on Strip clocked, locals stronger; Montana reopens first

Boyd doing well; What price Vegas?

Posted on April 29, 2020 by David McKee

Boyd Gaming posted net revenues of that were down 18% for 1Q20, reflective of mid-March casino closures. JP Morgan analyst Joseph Greff termed the results ones “that reflected relatively strong trends in the first two months of the quarter.” Since only the Downtown sector had “airlift dependency,” Boyd was relatively sheltered from gamblers’ reluctance to travel to Las Vegas. Having jettisoned a significant amount of payroll, Boyd is presently churning through $60 million a month (including $16 million in monthly interest payments) and has $831 million on hand, enough to keep it going for 14 months. Greff’s models assume a Boyd reopening in June “with a gradual rate of improvement, or, put another way, a less bad year-over-year trend over the next two years.”

Total revenues were $680.5 million. The Vegas locals sector was down 19% while Downtown was off Continue reading →

Posted in Boyd Gaming, California, Churchill Downs, Cosmopolitan, Derek Stevens, Downtown, Economy, Hard Rock International, Health, Horseracing, Las Vegas Sands, LVCVA, Macau, Massachusetts, MGM Resorts International, Pennsylvania, Regulation, Resort fees, The Strip, Wall Street, Wynn Resorts | 1 Comment

Quote of the Day

Posted on April 29, 2020 by David McKee

“I don’t want to be in a society where we’re setting up systems for many people to die.”—Stephen Pagliuca, co-chairman of Bain Capital.

Posted in Current, Health | 1 Comment

Las Vegas breakthrough; Shoot the messenger

Posted on April 28, 2020 by David McKee

Las Vegas-based Avidium Labs says it has developed a Covid-19 test that has been validated at laboratories in California and New York. Said CEO Evan Louie, “Our team is diligently working on getting our tests to a wide range of healthcare providers such as physician offices, hospitals, and government agencies for rapid results … We have the capacity to manufacture more than 150,000 of our kits per week and have started receiving orders for shipment.” (We’ve no doubt of that.) The test supposedly works in 10 minutes, once a blood sample has been obtained. Avidium says it has compared its tests against others available on the market and has a 97% positive correlation and 100% negative one. It has notified the FDA to be placed on the emergency-use track. Finally, some good news out of Sin City.

*What do you do if your anti-money-laundering program is a dismal failure? Sue the whistleblower who exposed your ineptitude, of course! That’s what Continue reading →

Posted in Australia, California, Dining, Genting, Health, Idaho, Melco Resorts & Entertainment, Money laundering, Philippines, Resorts World LV, South Korea, Tribal, Wynn Resorts | 1 Comment

Quote of the Day

Posted on April 28, 2020 by David McKee

“Given the way some people are acting in states that have already started easing restrictions—flocking to beaches without maintaining physical distancing, for example—what we really need to ramp up is IQ testing.”—Boston Globe columnist Teresa Hanafin

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Sacrificial rites in Las Vegas

Posted on April 28, 2020 by David McKee

Without pointing any fingers of blame, the Coronavirus pandemic has laid bare a feeble testing response and an inability to get a vaccine before the public until year’s end at earliest (which we should have been expecting all along). It’s also unleashed a virulent strain of social Darwinism, as people like Las Vegas Mayor Carolyn Goodman (I) present their constituents as sacrificial offerings to a ‘reopened economy.’ We turn the microphone over to NBC News anchor Chuck Todd, who had this to say last Sunday: “It’s against this backdrop that some of the nation’s governors are taking the risky step of opening their states for business. Behind that decision is a brutal calculation, that the unemployment, the hunger, the depression and the social dislocations of a stalled economy are worse than the certainty of an even more—larger death toll from COVID-19 as businesses reopen. Health care experts acknowledge the necessity of Continue reading →

Posted in Caesars Entertainment, Economy, Health, Las Vegas Sands, MGM Resorts International, Phil Ruffin, The Strip, Tourism, TV, Wynn Resorts | 7 Comments