{"id":27756,"date":"2020-08-17T06:57:59","date_gmt":"2020-08-17T14:57:59","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=27756"},"modified":"2020-10-19T06:50:58","modified_gmt":"2020-10-19T14:50:58","slug":"miller-dares-adelson-room-rates-reel","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/miller-dares-adelson-room-rates-reel\/","title":{"rendered":"Miller dares Adelson; Room rates reel"},"content":{"rendered":"\n
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Late last week American Gaming Association<\/strong> President Bill Miller<\/strong> did something radical about Internet gambling. He discussed<\/em> it. On a conference call. With reporters. Unprompted. You have to understand that ‘Net betting has been a no-fly zone for the AGA for years, ever since Miller’s predecessor, Geoff Freeman<\/strong>, was chastised by Sheldon Adelson<\/strong>. However, gaming’s present economic calamity means all options are on the table, especially with more Americans turning to the Internet as attendance at physical casinos is either A)<\/strong> impossible or B)<\/strong> a hassle. It’s only legal in six states, if you count poker-only Nevada, but others are looking at it\u2014as is Wall Street<\/strong>. <\/p>\n\n\n\n

\u201cOnline betting in the U.S. is in the first chapter\u2014maybe even just the foreword\u2014in terms of the growth story,\u201d said Chris Grove<\/strong>, analyst with Eilers & Krejcik Gaming<\/strong>. \u201cThere simply aren\u2019t as many opportunities for growth on the retail casino side.\u201d Both Rush Street Gaming<\/strong> and Tilman Fertitta<\/strong> are preparing to go public with their online-gaming operations. \u201cWe realized that we have an online gaming business that is worth a lot more than we thought it was worth,\u201d Tilman told the Wall Street Journal<\/em> and even Tom Reeg<\/strong> is making noises of a similar ilk. Meanwhile, Penn National Gaming<\/strong>‘s Internet-gambling revenue kept going up even after<\/em> its terrestrial casinos reopened.<\/p>\n\n\n\n

It’s a growth economy<\/a> and the AGA can hardly keep its head in the sand any longer. When the market cap of DraftKings<\/strong> ($12 billion) exceeds that of the two largest casino companies, people are bound to take notice. Miller was careful to avoid any outright endorsement, saying the issue should be “decided on a state-by-state basis.” But who ever thought the AGA would go that far again? Adelson may be the 800-pound gorilla of the AGA but Internet gambling is the elephant in the middle of the room and can no longer be ignored … and Adelson, for all his billions, is only one dues-paying member of the association. The Internet genie is out of the bottle and Miller is to be commended for tacitly acknowledging that fact.<\/p>\n\n\n\n\n\n\n\n

\"\"Speaking of economic calamity, after settling into a comfortable trough, Las Vegas<\/strong> room rates took another dive this week, down 55% for the September 6-12 period. You can get a room for an average of $106 on the Las Vegas Strip<\/strong>. Surprisingly, midweek business (-52%) showed slightly greater resilience than weekend traffic (rates down -57%) at convention-centric MGM Resorts International<\/strong>. There wasn’t much variance at Caesars Entertainment<\/strong>, down 58.5% overall. Ditto Wynncore<\/strong>, off 52.5%. Despite Palazzo<\/strong> being hors de combat<\/em> midweek, Las Vegas Sands<\/strong> suffered -64% on weekdays but rebounded to -47% on weekends. The Cromwell<\/strong> was among the properties not taking reservations. There are “zero scheduled conventions” during the survey period, which tells you indirectly how important they are to Vegas. Still, a Sin City hotel room is a better investment than AirBnB<\/strong>, down 67% for 2Q20.<\/p>\n\n\n\n

Absolutely, positively have to play cards? Afraid that Washington State<\/strong> Gov. Jay Inslee<\/strong> (D) will order a new round of shutdowns? Then how do you feel about playing in a tent? That’s the route some entrepreneurs are taking. According to Global Gaming Business<\/em>, Inslee has signed off on the unusual compromise. Maverick Gaming<\/strong> was the moving force behind the brokering of the deal (pun unintended) but unaffiliated Black Pearl Poker Room & Casino<\/strong> was the first to act. \u201cMaverick, to my understanding, has a lobbyist working on their behalf only, not for us or the other card rooms,\u201d says Black Pearl co-owner Dan Baker<\/strong>. The tent idea came about when Inslee postponed card-room reopenings from Phase Two to Phase Four of the state’s Covid-19 recovery plan. <\/p>\n\n\n\n

Said Baker of the two-sided tents, \u201cRight now, there\u2019s a little bit of excitement because it\u2019s different. The play seems to be on pace or even a little bit better. We\u2019re limited in our games. We reduced poker tables and gaming tables. It appears that things are going pretty well. I hope it is more than just a novelty.\u201d We<\/em> hope the Pacific Northwest weather cooperates. So far, players have been amenable to playing in 103-degree heat. Baker told GGB<\/em>, \u201cWe have a pretty stringent sanitizing protocol. The staff is in masks. We sanitize the chips and rails, and there\u2019s surface sanitation on every down. When any player leaves the table, we sanitize the seats and the entrance podium. It\u2019s constant sanitation. We sanitize the cards with UV lights.\u201d It would be hard to find fault with Black Pearl’s approach.<\/p>\n\n\n\n

Jottings<\/em><\/strong>: Did Mohegan Sun<\/strong> reopen too early? Management is planning a new round of layoffs. If you’ve not been called back to work by August 31, your Mohegan job is kaput … The Mirage<\/strong> reopens August 27. MGM Resorts International<\/strong> is being chary with details of the resumption. And speaking of MGM …<\/p>\n\n\n\n