“We’ve done some research out there with regard to these consumers. And clearly, we’ve talked about a new norm. The customers are saying that they’re not fully employed. They don’t have the discretionary budget that they had either because they have made large ticket purchases last year or they’re not getting enough employment. I think households under $75,000 out there in our regional markets are still hurting and making a conscious decision not to engage in our products for budgetary reasons.” — Penn National Gaming CEO Timothy J. Wilmott, on current market trends among his bread-and-butter players.
Penn National Gaming lowered estimates for cash flow and other metrics today, as well as releasing 1Q14 results that J.P. Morgan analyst Joseph Greff wrote were “generally in line with our … estimates.” According to Penn, player spending has been generally consistent, though its lower-income players are “challenged.” (I would imagine so.) Full-year revenue and cash-flow projections were lowered, partly to take in a worst-case scenario for Argosy Sioux City, which could be forced to close July 1 — not likely, but it’s best not to assume. The difference was not enormous: Morgan had projected $2.6 million in revenue for the year, which Penn has marked down to $2.5 million.
Carlo Santarelli of Deutsche Bank characterized the first-quarter results as “in line.” Sioux City aside, he attributed some of the forthcoming writedown to Continued >>
Twenty-two. That’s how many applicants paid a $1 million application fee to vie for four casino licenses in upstate New York. That’s more than Massachusetts, far more than Kansas, neither of which matches the allure of the Empire State (to cite two recent examples). ““This isn’t going to be a conversation about whose neon sign is bigger. This is going to be about creating the attractions that is going to drive tourism from downstate to upstate,” said Empire Resorts spokesman Charles Degliomini, in a dig at Las Vegas. (Empire parent Genting Group isn’t exactly a blushing violet.)
In addition to Empire, applicants include Genting itself (despite lacking a location), Caesars Entertainment, Trading Cove New York, Foxwoods Resort Casino, Nevele resort, Saratoga Casino & Raceway (which is pursuing a backup site in Newburgh, closer to New York City), Traditions at the Cove Resort, Howe Caverns, Tioga Downs, to name but a few. Caesars may have bigfooted Continued >>