{"id":27348,"date":"2020-06-18T11:26:36","date_gmt":"2020-06-18T19:26:36","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=27348"},"modified":"2020-06-23T08:27:28","modified_gmt":"2020-06-23T16:27:28","slug":"upbeat-at-churchill-downs","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/upbeat-at-churchill-downs\/","title":{"rendered":"Upbeat at Churchill Downs"},"content":{"rendered":"\n

JP Morgan<\/strong> analysts met virtually with Churchill Downs<\/strong> brass, including CEO Bill Carstanjen<\/strong>. The news was good to great. First things first, the Kentucky Derby<\/strong> is expected to be run with spectators (CHDN execs are keeping an eye on what happens with the Indianapolis 500<\/strong>) and social distancing will probably mostly affect general-admission ticket holders. Although they represent two-thirds of attendance, their financial impact is minimal (10% of the gate). As for casinos, Churchill Downs has reopened seven of 10, although cash cow Rivers Casino Des Plaines <\/strong>is in the “TBA” category, along with casinos in Maine<\/strong> and Pennsylvania<\/strong>. “Derby City<\/strong> has been stronger than management expected, with many properties up y\/y despite fewer machines\/lower capacity and reduced freeplay\/marketing.” Capex projects for the year are characterized as “on schedule,” mainly Oak Grove<\/strong> (September opening) and Turfway Park Annex<\/strong> (late in the year). Morgan’s Daniel Politzer<\/strong> wrote “we believe the broad reopening momentum in gaming should be constructive as CHDN considers resuming some of its paused capital projects.”<\/p>\n\n\n\n\n\n\n\n

An interesting loophole in Kentucky<\/strong> law would allow Churchill Downs to open two additional historical-racing parlors (slot houses, essentially) if they’re within 60 miles of a CHDN-owned track. There can’t be another licensed track within 60 miles nor a simulcast facility within 40 but still … Sheltering in place, by the way, has been dynamite for CHDN’s Twin Spires<\/strong> online-wagering service, especially as horse races continued to be run, albeit without spectators. And when casinos reopen in Illinois<\/strong>, the tax rate will be lower in the Prairie State. All in all, what’s not to like?<\/p>\n\n\n\n

* Similar things might be said for Hard Rock Casino<\/strong> in Biloxi<\/strong>, which apparently has been living up to its name since reopening. Twin River Holdings<\/strong> executive veep Marc Crisafulli<\/strong> told Global Gaming Business<\/em> that customer response has been “staggering for us. It proved there was pent-up demand. People wanted to come back. Our performance on slots and tables were higher than last year, even with those restrictions,\u201d such as only three players per table. Twin River’s Dover Downs<\/strong> in Delaware<\/strong> has not so gangbusters but still \u201cWe\u2019ve really seen the slot players come.” (Compared to Delaware restrictions<\/a>, Mississippi<\/strong> is wide open.) As for Twin River’s home base, Rhode Island<\/strong>, the company opened with invitation-only events and no tables. \u201cWe\u2019ve been very cautious there. Our doors are open, but we consider it a pre-opening. It\u2019s a bit of a pilot to make sure the protocols are working.\u201d<\/p>\n\n\n\n

Among the protocols with which Twin River was experimenting were dividing its Lincoln<\/strong> and Tiverton<\/strong> properties into “mini-casinos” to which players were assigned\u2014and barring smoking. Crisafulli, who predicts continued growth for the mini-major, currently present in eight states, observed that “the whole Covid-19<\/strong> situation caused us to take a hard look at the expenses of our business. There are expense savings that you can realize and still operate efficiently in this environment. I don\u2019t know how long that will last. Two main drivers have been employee costs with limited amenities. You don\u2019t need as many people and marketing and promotions, because you have limited capacity. When you don\u2019t have loss leaders, like a buffet, you can actually operate at a higher profitability.\u201d Is that the way for Twin River going forward? Judging by Crisafulli’s remarks, the company will let the market decide.<\/p>\n\n\n\n

* We’ve said before that Full House Resorts<\/strong> CEO Dan Lee<\/strong> is the most politically connected man in gaming, by dint of being married to Rep. Susie Lee<\/strong> (D). And how. Rep. Lee is one of four people<\/a> in Congress who are connected to companies that received Paycheck Protection Program<\/strong> monies. At the risk of seeming to exonerate Mrs. Lee, Mr. Lee’s company is kind of rinky-dink (sorry, Dan), the sort of one that ought<\/em> to qualify for the PPP, to the tune of $5.5 million. Still, it might have been better to refrain than to benefit from being literally in bed with Congress, especially a member of the Congressional Gaming Caucus<\/strong>, which directly lobbied the Small Business Administration<\/strong> to liberalize its rules on what kinds of companies could qualify for PPP loans. (Rep. Lee supports PPP full disclosure, to her credit.)<\/p>\n\n\n\n

Jottings<\/em><\/strong>: In case you doubted that The Drew<\/strong> is through, contractors are suing it for $36 millions, alleging unpaid bills. The auguries just get worse and worse … Luxor<\/strong>‘s HyperX Esports Arena<\/strong> reopens June 25. Gaming stations will be sanitized hourly. Rules of compliance<\/a> are congruent with MGM Resorts International<\/strong>‘s “Seven Point Safety Plan” … When you’re $2.3 billion in debt, keep digging, right? The UFC<\/strong> is borrowing another $150 million, raising issues about its debt burden … If you’re coming to Macao<\/strong> from Peking<\/strong>, prepare to spend 14 days in quarantine. It’s just the latest in many restrictions laid upon the gaming enclave … There are rumblings coming out of Trenton<\/strong> about Atlantic City<\/strong> casinos receiving potential tax breaks and fee waivers. Let’s hope it’s more than scuttlebutt. The casinos deserve it … No plexiglas barrier between you and your table game dealer? Better put on a mask, says the Nevada Gaming Control Board<\/strong>, in a newly promulgated rule, possibly prompted by the lax conduct of Nevada<\/strong> casino players … Speaking of which, Covid-19 cases in the Silver State spiked by a record number on Tuesday … As for safety, Bellagio<\/strong> reopens its poker room today with plexiglas dividers and a six-players-per-table max … On the not-so-good front, Mayfair Supper Club<\/strong> at Bellagio closed temporarily after an employee tested positive for Coronavirus. Worse still, he worked in the kitchen, affecting God knows who much food.<\/p>\n","protected":false},"excerpt":{"rendered":"

JP Morgan analysts met virtually with Churchill Downs brass, including CEO Bill Carstanjen. The news was good to great. First things first, the Kentucky Derby is expected to be run with spectators (CHDN execs are keeping an eye on what … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":21268,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[23,176,145,164,18,220,198,67,58,116,62,147,245,35,95,33,25,141,74,243,225,31,9,269,38],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/27348"}],"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=27348"}],"version-history":[{"count":2,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/27348\/revisions"}],"predecessor-version":[{"id":27390,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/27348\/revisions\/27390"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media\/21268"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=27348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=27348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=27348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}