Sports books get thumped; National Harbor rules

Nevada sports books are reeling from an NFL Week 9 that stands to see them lose as little as $7 million and as much as $10 million. Bettors, meanwhile, are crying all the way to the bank. Among the games that tilted the balance was a Kansas City Chiefs/Cleveland Browns contest that had only an eight-point spread. The elite Chiefs blew out the lowly Browns by twice that number. “We were pretty much done at that point. Disaster,” MGM Resorts International sports book boss Jay Rood told ESPN. “Bad. Really bad. We won one key decision today,” added Caesars Entertainment‘s chief of risk operations, Jeff Davis. Looking for a bright spot, Station Casinos‘ Jason McCormick reached for the Miami Dolphins‘ win, since it had the least amount of handle riding on the outcome.

Simply put, the bettors outsmarted the oddsmakers. “The public just nailed it,” said Boyd Gaming sports book boss Bob Scucci, who added, “By the time we got to the two biggest games — Packers–Patriots and Rams–Saints — there were so many parlays alive that we were going to lose no matter what.” Rood said the rout of the bookmakers was one of his 10 worst Sundays in memory. Similar wipeouts were reported in Mississippi and New Jersey. Among other things, last Sunday underscores how volatile and low-profit the sports book can be, and why states and leagues are unwise to look at it as the gravy train.

* October was big for Maryland, which saw an 18.5% increase in casino revenue. MGM National Harbor posted a mind-boggling 41.5% blastoff ($73.5 million), while Maryland Live ($47 million) had to settle for 2.5% more business. Perhaps we were
too quick to write off Horseshoe Baltimore, which posted a 7.5% jump (and a $21 million gross), and Penn National Gaming‘s red-headed stepchild, Hollywood Casino Perryville ($6 million) slipped 1.5%. Ocean Downs galloped 16% ahead to $6 million but Golden Entertainment‘s Rocky Gap Casino stumbled 4% to $4.5 million. National Harbor owns 46.5% of market share, Maryland Live has 30% and Horseshoe is way back there with 13%. Over in West Virginia, it was deuces wild at Hollywood Casino Charles Town, down 2% on 2% less slot revenue and 2% less table win.

* Even as voters in Arkansas are casting ballots on whether or not to legalize casinos, Delaware North is trying to tip the scales with a last-minute promise. Owner of Southland Gaming & Racing in West Memphis, Delaware North said it is ready to build a $200 million hotel and convention center at the track, which would be juiced into casino gambling if Issue 4 passes. Of course, the hotel project will probably go away if the ballot question fails, so there’s definitely some quid pro quo in the works. Alas, whatever happens Southland will not end the inhumane sport of dog racing, which is almost enough to make you root against them. Issue 4 is coming down to the wire, with 49% support and 43% opposition, according to one poll. Proponents of the amendment are promising 6,000 new jobs (half of them indirectly created) and $5.8 higher GDP — not to mention the retention of all those gamblers presently headed for Tunica or Oklahoma.

While Oaklawn horse racing track has remained officially natural on Issue 4, it has to like a provision cosseted within the amendment. Tax rates on wagering revenue would fall from their present 20% to 13% for the first $150 million in revenue, reverting to 20% on every dollar above that. With two casino licenses at large in Issue 4, interested parties like Warner Gaming and Mississippi‘s Gulfside Casino have been funding pro-Issue 4 advertising. Ironically, voters in Pope County (one of the juiced-in jurisdictions) could vote in favor of Issue 4 yet also pass a ordinance that would require a local vote on casinos). A late and unlikely entrant in the underfunded anti-casino ranks is Caesars Entertainment, protecting its Tunica flank, but weighing in with only a week to go, perhaps too late to influence those swing voters. In 24 hours, when we tabulate today’s winners and losers, into which column will Caesars fall? It’s up to the electorate.

* Hard Rock Atlantic City has had its first run-in with New Jersey regulators. In hiring Asian-marketing executive Mann Lien it failed to notify the Division of Gaming Enforcement, an absolute no-no. The sting of the fine — $5,000 — won’t cause Hard Rock to lose very much sleep but it does create questions about why Hard Rock International felt the need to be sneaky. But maybe they’ll twice before doing it again.