{"id":22985,"date":"2018-11-27T08:21:55","date_gmt":"2018-11-27T16:21:55","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=22985"},"modified":"2018-11-27T08:21:55","modified_gmt":"2018-11-27T16:21:55","slug":"uncle-sam-wants-your-sports-bet-strip-outperforms-nevada","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/uncle-sam-wants-your-sports-bet-strip-outperforms-nevada\/","title":{"rendered":"Uncle Sam wants your sports bet; Strip outperforms Nevada"},"content":{"rendered":"

Credit Suisse<\/strong> analyst Cameron McKnight<\/strong> had an ominous take on sports betting, as regards federal intervention and “integrity fees.” \"\"“Federal action on sports betting sounds more likely, though our contacts disagree on scope,” he warned, adding, “On integrity fees, we think the sports leagues\u2019 efforts are only beginning \u2013 and they may concentrate on achieving federal oversight and outcomes in larger states like New York<\/strong>, Massachusetts<\/strong> and Illinois<\/strong>.” The Empire State is shaping up as a key battleground, as the Lege is expected to grapple with sports betting next year. “New York is a key catalyst and stocks could rally if sports betting is included in the early 2019 state budget …\u00a0We think investors are more likely to seriously ascribe value for sports betting when it is legal in NY.”<\/p>\n

DFS operators, already having quasi-sports-betting infrastructure in place, have gobbled up\u00a0as much as 90% of the sports-betting marketplace outside Nevada<\/strong>. The only curb on growth could be limitation of ‘skins’ per casino operator (New York has proposed one apiece). “Sports betting markets are expected to settle into 3-4 dominant players within 3-6 months of markets opening,” McKnight writes, “with potential for marketing spend to quickly settle at 30% of gross revenues and a path to early profitability.” Some stock-pickers are already adjusting their revenue projections upward, based on the early returns from New Jersey<\/strong> and Mississippi<\/strong>, so that’s something about which to cheer.<\/p>\n

* This concept<\/a> will never work in Las Vegas<\/strong>. Can you imagine being stuck in typical bumper-to-bumper Strip traffic in your pajamas?<\/p>\n

* Speaking of the Las Vegas Strip<\/strong>, it shot past the rest of Nevada in October, improving 12% to the Silver State’s 7.5% gain. One regrets \"\"to note, but must, that the prior-year comparison was impacted by the Mandalay Bay Massacre. That being on the record, Strip casinos flourished despite an 11% drop-off in baccarat win despite 53% more wagering. Slot revenues ($300 million) were up 8.5% on 5% more coin-in. 23% more table-game wagering produced 16.5% more win ($288 million). With all games included, the Strip’s gross came to $593.5 million. Downtown<\/strong>, with $64 million, was flat despite the easy comparison.<\/p>\n

Bargain hunters flocked to Laughlin<\/strong>, up 12% to $47 million, while North Las Vegas<\/strong> was flat at $27 million, ditto the Boulder Strip<\/strong>‘s $78 million haul, while miscellaneous Clark County<\/strong> nudged 2% higher to \"\"$105.5 million. Reno<\/strong> slipped 3% to $52 million but Lake Tahoe<\/strong> was 4% higher, to $17 million. Elko<\/strong> was 5% up to $25 million, while Carson Valley<\/strong> gained 3% to $9 million. “Slot volumes up +5.1% y\/y a clear positive, and mass table volumes up +8.9% suggests the “everyday” customer is doing well,” wrote McKnight. He added, “In our view, normalized mass market revenues are the best indicator of market growth and health as they include slot machines, which represent 50% of Las Vegas, and excludes the volatile baccarat business, in which only a handful of casinos participate.” The slot player, he said, is “a resilient core customer.”<\/p>\n

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Credit Suisse analyst Cameron McKnight had an ominous take on sports betting, as regards federal intervention and “integrity fees.” “Federal action on sports betting sounds more likely, though our contacts disagree on scope,” he warned, adding, “On integrity fees, we … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":21998,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[88,227,51,14,58,76,49,228,112,35,207,248,101,78,243,9,100,38],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/22985"}],"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=22985"}],"version-history":[{"count":1,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/22985\/revisions"}],"predecessor-version":[{"id":22986,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/22985\/revisions\/22986"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media\/21998"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=22985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=22985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=22985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}