Boyd impresses the Street, MGM disappoints

By David McKee ~ October 31st, 2014 @ 11:46 am No Comments »

Boyd Gaming pleased Wall Street with its 3Q14 results, of which Joseph Greff of J.P. Morgan said “margin improvement was notable and impressive.” He noted samstown-pic2modest growth in the Las Vegas locals and downtown segments and better-than-expected regional numbers, as well as at Borgata. He wrote “the recent reduction of capacity (and the potential for more) could be a positive for the Borgata, but any political momentum behind commercial casinos in northern [New Jersey] would be a sizable negative.” As for regional markets, “the degree to which year-over-year declines may indicate some stabilization (can be characterized as getting less bad)”

In Las Vegas, “strong pedestrian traffic in the Fremont Street area and growth in visitation from Hawaii” drove a slight Continued >>

Feeling squeezed in Delaware, Indiana

By David McKee ~ October 31st, 2014 @ 10:26 am No Comments »

No two ways about it, Delaware‘s racinos are failing. However, they have an ambitious plan to reverse that … providing the state is cooperative. One of the reasons the tracks Delaware leg-hallare struggling is an onerous 40% tax rate on table games, which the racinos would like to see reduced to 15%. Members of the  Video Lottery Advisory Council also proposed “that the tax rate on table games be revised, either by lowering the rate or by subtracting half the revenue to help casinos cover payrolls for the labor-intensive games before distributing the remaining money among the state, the casinos and the horse racing industry.”

The council also proposed pegging the tax rate on slots to gross revenues: higher when play is strong, lower when it is not. The council is also pondering Continued >>

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 >>

Further Reading

Boyd impresses the Street, MGM disappoints

Feeling squeezed in Delaware, Indiana

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

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