The second line of assault is to accuse Wynn Resorts of interfering in Suffolk Downs’ relationship with Mohegan Sun. That arrangement would have seen the Mohegans develop a megaresort and pay Sterling Suffolk $35 million a year. How Wynn supposedly interposed itself is not immediately clear. The third and final thrust of Fields’ accusatory finger is to argue that Steve Wynn‘s sexual misadventures should have queered the pitch for Wynn Resorts to receive a casino license. Never mind that l’affaire Wynn didn’t become public until then-Wynn Boston Harbor had already received its gaming license, nor that Massachusetts levied heavy penalties on the company for El Steve’s sexual predations. Fields is grabbing anything he can throw by this point. Accusations #2 and 3 seem flimsy and desperate, respectively. The concealment issue, however, is one of gravity. If Wynn had foreknowledge of its sellers’ backgrounds (which caused the price of the land to plummet when they came to light) and didn’t come clean, that could be grounds for a severe penalty indeed.
Improved prospects for sports betting in Canada have motivated Credit Suisse analyst Ben Chaiken to upgrade his rating on DraftKings. Writes Chaiken, “The Canadian gaming opportunity is larger than we had originally anticipated, given what could be broader iGaming and sports betting adoption throughout Canada, not just Ontario.” The latter is also contemplating Internet gambling, an expansion that could be worth $1.5 billion to participating companies, with 15 million citizens on tap and no requirement in the enabling legislation for a bricks-and-mortar casino partner. Adds Chaiken, “On Nov 26, The Minister of Justice and Attorney General of Canada introduced a bill that proposes to decriminalize single event wagering. This is a federal bill, so it would open up online sports betting throughout Canada and then leave the decision up to each province.” That could raise the potential jackpot to $4 billion.
South of the border, Chaiken expects DKNG to come online next year in Massachusetts, Michigan, Ohio, Louisiana, Maryland and Virginia, with three of those states alone representing 10% of the U.S. population. “Keep in mind, MA sports betting law is still a work in progress, but we think DKNG could be in a unique position, especially if it can acquire an online-only license, which would come with market access and structural margin benefits. This is important, given there are 3 main commercial casinos in the state … and we think some investors have written DKNG off from entering,” Chaiken writes. He’s so bullish that he’s set a $76/share price target on a stock that currently trades at $52.75.
What’s Jon Gruden‘s excuse for yesterday’s dirt nap by the Las Vegas Raiders? A team that had managed a season split with the formidable Kansas City Chiefs was obliterated 6-43 … and by the miserable Atlanta Falcons, no less. In a season in which the 4-7 New York Giants are on pace to be a playoff team, anything is possible for the Raiders, whose winning percentage still exceeds that of the Baltimore Ravens—but not at this rate.
Jottings: A cat (yet to be chosen) is coming to the White House soon. It’s a Biden administration appointment that has our full endorsement … After dumping $4.5 million into Texas legislative races, Sheldon Adelson is going to make another casino push in the Lone Star State, which he claims is a potential $10 billion market. Resistance among the Texas establishment is so entrenched that if Sheldon can pull this off it might be the biggest miracle of his career … Although revenues in Atlantic City have improved dramatically, operating profit is down 37%. The only overachiever was Ocean Casino Resort, riding a hot streak. Worst off is Borgata, plunging 97% in profitability.
