{"id":14783,"date":"2014-10-16T11:09:54","date_gmt":"2014-10-16T19:09:54","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=14783"},"modified":"2020-12-08T06:56:31","modified_gmt":"2020-12-08T14:56:31","slug":"atlantic-city-which-way-is-up-sheldon-adelson-prophet","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/atlantic-city-which-way-is-up-sheldon-adelson-prophet\/","title":{"rendered":"Atlantic City: Which way is up?; Sheldon Adelson, prophet"},"content":{"rendered":"

Unburdened of four unprofitable casinos, if the revenue in Atlantic City<\/strong> is counted on a “same store” basis (i.e., leaving Revel<\/strong>, Showboat<\/strong>, the Atlantic Club<\/strong> and Trump Plaza<\/strong> out of the picture), the Boardwalk actually saw a 4% increase in “same store” revenue last month<\/a>.\u00a0\u201cWe are seeing some new customers who have either never been here before or were going to other properties,\u201d reported Borgata<\/strong> Senior Vice President Joe Lupo<\/strong>, while Resorts Atlantic City<\/strong> is chasing potential new customers with “very aggressive” comps and promotions.<\/p>\n

Still, the glass is half-full. Of the play that went to the four closed casinos,\u00a0\u201cWe expect a little bit more than 50 percent of that business to be recaptured by the
\n\"Borgata_ac\"<\/a>existing casinos, and about 40 percent to be lost entirely.\u00a0We expect the casinos to go after the best customers,” said Fitch Ratings<\/strong> analyst Alex Bumazhny, “rather than the less optimal customers.\u201d Bumazhny was surprised that Trump Taj Mahal<\/strong> failed to benefit from the closing of Trump Plaza<\/strong> — indeed, it suffered a steep fall. On the positive side, Internet<\/strong> gambling accounts at the casinos increased 6%. The should soften the blow to the market of the defection of Internet partners<\/a> from Trump Entertainment Resorts<\/strong>, the company that can’t do anything right. (It’s presently demanding $175 million in state and city subsidies, which takes some nerve.) Borgata\/Bwin.party<\/strong> was tops with $3.4 million while Caesars Interactive<\/strong> took the #2 spot with $2.6 million.<\/p>\n

Resorts Atlantic City<\/strong> neither suffered nor benefited from the changed dynamic. Property President Mark Giannantonio<\/strong> attributed it to Lady Luck, in the form of poor table hold. “We just ran very unlucky. We would have been up about 8.5 percent.\u201d Blaming the media for\u00a0all the recent bad news on the Boardwalk (i.e., killing the messenger), Giannantonio opined,\u00a0\u201cWe had three closures in about a month, so news coverage certainly had a negative impact on the city. The further we get away from that \u2014 and I think the city will rebound and rebuild.”<\/p>\n

* One of the more questionable uses of public funds, mostly rescinded, is Maryland<\/strong>‘s policy of leasing slot machines to casinos<\/a>. Although the law requiring the state to be the slot provider was repealed two years ago, the change hasn’t fully sunk in. The state’s two smallest casinos, Rocky Gap<\/strong> and Ocean Downs<\/strong>, continue to benefit from this superfluous policy. I mean, if a casino can’t afford its own slots, what use is it? And why should Ocean Downs and Rocky Gap continue to enjoy this favored status when everybody else is paying their own way?<\/p>\n

* Quickly revising a prophecy made at Global Gaming Expo<\/strong>, uber<\/em>-mogul Sheldon Adelson<\/strong> postponed\u00a0recovery in the Macao<\/strong> casino business to\u00a0the \"Sheldon<\/a>second quarter of next year. Only a few days earlier, he was predicting an end-of-2014 comeback<\/a>.\u00a0\u201cNotwithstanding the recent cyclicality in Macao, I am as confident today as I have ever been in the long-term future of our company. This confidence is not based on whimsical fancy, but is founded on the company\u2019s sustainable strategic advantages,\u201d he added.<\/p>\n

To make his point, Adelson is promising a 30% increase in next year’s dividend and an additional $2 billion in share repurchases<\/a>. Profitability also exceeded Wall Street<\/strong>‘s expectations. However, Union Gaming<\/strong> analyst Grant Govertsen<\/strong> warned of political instability in Hong Kong<\/strong> translating into players commuting less and betting smaller. In other Adelson marginalia, the Las Vegas Sands<\/strong> sultan gave the thumbs-down to tourist-only casinos in Japan<\/strong> and South Korea<\/strong>. He also forecast a five-month soft opening of Parisian<\/strong>, in Macao. That’s so soft it’s squishy.<\/p>\n","protected":false},"excerpt":{"rendered":"

Unburdened of four unprofitable casinos, if the revenue in Atlantic City is counted on a “same store” basis (i.e., leaving Revel, Showboat, the Atlantic Club and Trump Plaza out of the picture), the Boardwalk actually saw a 4% increase in … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[23,60,3,104,7,22,37,171,62,72,167,157,12,169,38],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/14783"}],"collection":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/comments?post=14783"}],"version-history":[{"count":2,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/14783\/revisions"}],"predecessor-version":[{"id":28894,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/14783\/revisions\/28894"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=14783"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=14783"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=14783"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}