Friday Case Bets

By David McKee ~ October 31st, 2014 @ 9:33 am No Comments »

America‘s second-largest casino market, Pennsylvania, has truly hit the jackpot, according to a new study by Oxford Economics. It addition to engendering 18,000 direct-employment jobs, casinos have generated economic impact of $6.2 billion and paid $2.4 billion in taxes, not to mention generating $1.7 billion in wages (some of which may be indirect). Gambling grossed $3.1 billion, while amenities yielded another $250 million.

Geoff-FreemanThe 33,574 direct and indirect jobs are making the difference between 5.7% unemployment and 6.6% (theoretical). Casinos are also effectively providing tax relief of $488 per household for Pennsylvanians. American Gaming Association President Geoff Freeman was quick to tout the impressive numbers and appeal for tax relief. “How do we take 34,000 jobs and turn it into 50,000 jobs,” he asked. “How do we take $2.4 billion in tax payments and turn it into Continued >>

NHL maybe, NBA not so much

By David McKee ~ October 30th, 2014 @ 12:43 pm No Comments »

“Preliminary talks” could mean relatively nothing but when one of the principal parties is MGM Resorts International, you have to take them seriously … especially when NHLMGM is building an arena intended for major-league sports. Still, there don’t appear to be direct negotiations with an actual team but instead “a group interested in housing an NHL team.” Very different. Sports Business Daily has looked at the economics of an NHL franchise in Sin City and concluded that they don’t pan out. Then there’s the hostility of the league itself. Another wrinkle is that MGM partner AEG owns the Los Angeles Kings. The company would probably welcome having another market in which to show off the Kings, but how does it feel about building an arena whose primary tenant would be a rival franchise?

It still seems far more plausible than Continued >>

Quote of the Day

By David McKee ~ October 30th, 2014 @ 10:26 am No Comments »

MGM Springfield painting“Reneging on the promise to Springfield won’t just disappoint the community leadership and those hopeful citizens whose futures might ride on this particular economic development project; going back now will also hurt the efforts of all those who try to market Massachusetts as a state that stands behind its promises to those who want to do business here.” — editorial in The Springfield Republican urging against a repeal of Massachusetts’ casino law.

Clashing views on MGM; Shotgun wedding in Pennsylvania

By David McKee ~ October 30th, 2014 @ 10:10 am No Comments »

MGM Resorts International‘s third quarter was “better than expected” if you were J.P. Morgan analyst Joseph Greff and “disappointing” if you are Deutsche Bank‘s Carlo Mandalay-Bay-picSantarelli. It’s a matter of how MGM performed relative to analyst forecasts. While the Las Vegas Strip properties arrived $42 million below Greff’s prediction, including an $18 million miss on table hold, he cited several extenuating circumstances, including construction disruption at Mandalay Bay and Monte Carlo. Santarelli was unforgiving, although MGM only missed his cash-flow projection by $31 million. He wrote, “unfortunately, the goodwill built up in the Strip margin story likely took a hit with this print. While disruptions were present, including construction and table hold, the result … is rather difficult to ignore.”

Santarelli conceded some praise to MGM for a 6% increase in Continued >>

Further Reading

Friday Case Bets

NHL maybe, NBA not so much

Quote of the Day

Clashing views on MGM; Shotgun wedding in Pennsylvania

Impatience in Philly; Big sting at Caesars

The village idiot; Knuckle-dragging in Maryland

Wynn confounded; Sands gets tough

Story time with Grandpa Sheldon

Fighting on in New Jersey; One-armed banditry

Election Special: What’s at stake; Fire sale at Trump

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