{"id":20489,"date":"2017-11-01T08:09:20","date_gmt":"2017-11-01T16:09:20","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=20489"},"modified":"2017-11-01T08:13:15","modified_gmt":"2017-11-01T16:13:15","slug":"macao-rockets-ahead-sls-sale-snagged","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/macao-rockets-ahead-sls-sale-snagged\/","title":{"rendered":"Macao rockets ahead; SLS sale snagged"},"content":{"rendered":"

While we share Galaxy Entertainment<\/strong> Chairman Lui-Che Woo<\/strong>‘s circumspection about announcing a full recovery in Macao<\/strong>, gaming revenues continue to ignore\u00a0the ‘stop’ signs. Last month they rocketed up 22%, which “blows past expectations,” \"\"according to Deutsche Bank<\/strong> analyst Carlo Santarelli<\/strong>, He projected growth of all-important VIP revenue to be as high as 31%. His JP Morgan<\/strong> counterpart, Joseph Greff<\/strong>, credited the boom entirely to VIP play but cautioned, “U.S.-listed Macau stock valuations and expectations are less than favorable, outside of MGM. Look no further than 3Q17 earnings releases that, thus far, have been mixed relative to expectations.” Staying on the subject of MGM Resorts International<\/strong>, Greff wrote, “To the state the obvious, MGM\u2019s share price has been weak since the tragic 10\/1 shooting in Las Vegas<\/strong>, and we think this represents an attractive opportunity …\u00a0We also think the stock has sold off to some extent, though we think silly, on (another) MGM Cotai<\/strong> delay.”<\/p>\n

Post the Stephen Paddock<\/strong> shootings, Greff predicts a 5% loss of cash flow on the Strip, the worst of it falling on Mandalay Bay, down 20%. By contrast, Steve Wynn<\/strong>\u00a0said he\u00a0saw no “measurable” and Las Vegas Sands<\/strong>\u00a0“management noted that Las Vegas is recovering, likely more quickly than first anticipated, and that visitors, in its view, have become more resilient\/accepting of these horrible situations.” Generally speaking, “the cancellations we have heard of seem confined to smaller, 10-20 person leisure-oriented group outings that didn\u2019t feel right about being celebratory immediately after the event.” Yes, remember it was just an “event,” not a massacre.<\/p>\n

* Put the brakes on that SLS Las Vegas<\/strong> sale. Stockbridge Capital Partners<\/strong> and Alex Meruelo<\/strong> are reported to be “haggling”<\/a> over the sales. It’s understand that Meruelo might drive a hard bargain for \"\"a dud, forlorn casino at the far northern end of the Las Vegas Strip<\/strong>. The deal was supposed to have been done by now but we’re looking at early 2018 instead. It looks as though $415 million in reconstruction costs of the once-and-future Sahara<\/strong> will be written off and Stockbridge is trying to salvage the $400 million purchase price of the asset, in a climate where casinos are changing hands in the mid-$300 millions.<\/p>\n

As Casino.org<\/strong> says of the SLS’ challenged business model, “The resort was completely surrounded by failed or stalled resorts, such as Alon<\/strong>, Fontainebleau<\/strong>, and Resorts World<\/strong>, and nothing says ‘not hip’ more than a wasteland.” Stockbridge is also going to be out at least $123 million in subsidies paid to bail out\u00a0Sam Nazarian<\/strong>‘s folly. We can only hope Meruelo has the blueprint for a better mousetrap.<\/p>\n

*\u00a0Never mind that casino revenues in Illinois<\/strong> have bottomed out (or stagnated, depending on your perspective), legislators are going back to the idea that more casinos are what the Land of Lincoln really needs. Slot routes now bring in more revenue than \"\"brick-and-mortar casinos. Fairmount Park<\/strong> is demanding VLTs<\/a>, threatening to cut live racing if it doesn’t get them. A megaresort has been proposed for Chicago<\/strong>, with a staggering 10,000 gaming positions (riverboats are limited to 1,200 each). Never mind that, for instance, Casino Queen<\/strong>‘s subventions to East St. Louis<\/strong>\u00a0have fallen from $11 million to $6.5 million over the last 11 years. Solons’ answer to saturation is always super-saturation. How much longer do we have to milk this cow\u00a0before Illinois’ Legislature realizes it’s tugging on a dry udder. Perhaps Illinois needs a new slogan — Illinois: State of Denial.<\/p>\n

* Congratulations to Mario Kontomerkos<\/strong>, CEO of\u00a0Mohegan Gaming & Entertainment<\/strong>. He’s received a three-year contract extension that calls for him to be paid a cool million a year<\/a>. We don’t begrudge him that considering how much Mohegan Sun<\/strong> brings in and, as CEO salaries in gaming go, Kontomerkos is a bargain at $1 million. Besides, he’s got a heavy workload, continuing to carry the portfolios of CFO and chief accounting officer until Mohegan Gaming can find successors.<\/p>\n","protected":false},"excerpt":{"rendered":"

While we share Galaxy Entertainment Chairman Lui-Che Woo‘s circumspection about announcing a full recovery in Macao, gaming revenues continue to ignore\u00a0the ‘stop’ signs. Last month they rocketed up 22%, which “blows past expectations,” according to Deutsche Bank analyst Carlo Santarelli, … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":17310,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[190,58,62,228,11,167,33,111,54,162,12,92,195,32,9,20,38],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/20489"}],"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=20489"}],"version-history":[{"count":1,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/20489\/revisions"}],"predecessor-version":[{"id":20490,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/20489\/revisions\/20490"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media\/17310"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=20489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=20489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=20489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}