JP Morgan analyst Joseph Greff issued a post-1Q19 bulletin in which he named Wynn Resorts (growth), Penn National Gaming (value for share price) and MGM Resorts International (event-driven revenue) as his top picks in the 
gambling sphere. Wynn got a nod because of “several key growth pillars in 2020,” including Encore Boston Harbor, the Las Vegas convention center and an increased focus on the mass market in Macao—where VIP play is in flight. (High rollers dropped 18% less at Wynn Palace and an alarming 40% less at Wynn Macau.) Recent revenues from the enclave were characterized as “generally in line to uninspiring,” although Las Vegas Sands beat expectations, increasing premium mass market winnings by 16% and mass-market trade by 10%. As for Penn, its value should be increased by higher cash flow “that should benefit from efficient operations and Pinnacle-related synergies.”
MGM’s price valuation is predicted to improve “from real estate monetization and 2020 plan cost-cutting initiatives, which aren’t reflected in the stock’s 
valuation, though we realize this could take time.” That’s good news for everybody except the employees CEO Jim Murren plans to pink-slip. You have to wonder what adversity Murren sees ahead when he is cutting costs at a time when business is phat. (Yes, that’s the technical term.) China traffic and play on the Las Vegas Strip “continues to be a drag.” As the Motley Fool wrote, “the first quarter was notably bad, particularly for a company like Wynn Resorts that caters to high-end baccarat players.” One Chinese company that’s turning a corner is Melco Resorts & Entertainment which told analysts that it’s seeing “very strong growth and strong volumes . . . [and is] finally starting to reach the potential we had expected with Morpheus.” You might say, if you mythologically inclined, that Morpheus has awakened from its slumbers.
Returning to MGM, in a sensational revelation too sensational to reveal, it said it would be submitting a megaresort proposal for Osaka. No details were forthcoming, other than that additional minority partners were being solicited
beyond Orix Corp. The project is required to cover 121 acres and will probably be sited on Yumeshima Island, meaning that MGM would be on the hook for traffic-access costs, Yumeshima being somewhat lacking in that department. MGM and Orix will also be mandated to pony up at least $8.5 billion, although Murren already has put well more than that on the table. Other, more nebulous requirements include the “ability to function as a tourism gateway to other parts of the country.” Planned countermeasures against problem gambling also have to be laid out in specifics, so it’s not like this is a slam-dunk for anybody.
* Anticipation of racino traffic is so high at Oaklawn Casino Racing Resort that it is even putting in a traffic light (the absence of which should tell you something about horseracing-related traffic). Oaklawn won’t bother with the panoply of a formal groundbreaking but leap right ahead to the construction phase, including new barns for the ponies. “We knew the table games were going to go over big, but we didn’t think they were going to go over this big,” said spokeswoman Jennifer Hoyt. “Table games have stayed packed, especially on race days.” Let’s hope there’s more from where that came.
* If you work for Caesars Entertainment it would be prudent to update your 
resumé. Eldorado Resorts CEO Tom Reeg has vowed to sack and pillage the Roman Empire, given the chance, cutting $500 million from the budget. The New York Post reports that Tilman Fertitta is having difficulty raising the money to buy Caesars, so an Eldorado takeover looks all but inevitable.
* Philadelphia casino-hotels need to get on the City of Brotherly Love’s newest trend: pet-friendly meals. Yes, your bowser can dine on organic chicken and filet mignon, meaning they may eat better than you do. “When a guest comes here, they know that they can ask us for anything they want,” said Ritz-Carlton Philadelphia spokesman Jimmy Contreras. “We love having pets in our hotel, and we love to be able to pamper them.” Awwww! As for the attractive arrangement of salmon over spinach and scrambled eggs, Lacroix restaurant sous-chef Zachary Bates says, “It’s more something we do to appeal to the guest. The dog doesn’t care.”
* Add Iowa‘s Kim Reynolds to the number of governors who have signed sports betting into law. In addition to being able to bet at the state’s 19 casinos (or their Web sites), as long as you’re 21 or older, you can now legally play DFS in the Hawkeye State. There are no prop bets, however, on college games, presumably to disincentiveize point shaving. The actual regulatory framework, however, has yet to be put into place, meaning that actual wagering isn’t expected to start until late summer.
* It’s a big week for Montana Gov. Steve Bullock (D). First he signs sports betting into law, then he announces he’s running for president. We’re not taking any credit but we like any “red state” politico who’s gaming-friendly.
