Helped by better-than-expected performances at M Resort and Hollywood Casino at Charles Town Races, beating its own estimates, Penn National Gaming exceeded Wall Street’s consensus for 3Q14. Cannibalization of Charles Town has not been as great as was feared and mid-to-lower tier players ard showing up in greater numbers. Promotions have been “rational” save in Missouri, where Penn is locked in mortal combat with Pinnacle Entertainment‘s two Ameristar-branded casinos.
Deutsche Bank analyst Carlo Santarelli noted that “regional trends remain uninspiring” but, in light of that, Penn should be able to exceed its own projections for the fourth quarter. Another positive augury is polling in Massachusetts, which shows casino repeal failing by a 14-point margin. That is not only encouraging in the short term, it means Penn will have a significant Continued >>
Gary Loveman has made a lot of mistakes as Caesars Entertainment CEO but building a convention center in Atlantic City wasn’t one of them. In fact, it’s been one of his better ideas. While he was in town to put his John Hancock on the final beam of the $126 million Waterfront Conference Center, he shared several cryptic remarks with the media. While he said he wasn’t in any talks with Unite-Here, Loveman added “The challenge in Atlantic City is not simply revenue but cost.”
This could easily presage a contractual squeeze like the one Trump Entertainment Resorts put on its labor force (which may have bought them only three more weeks of employment), particularly if Continued >>