Rid of the Atlantic Club Hotel, Showboat, Trump Plaza and Revel, cash flow at Atlantic City casinos shot upward 7%, or $147.5 million. Once that unhappy quartet is removed from the year-over-year comparison, the percentage increase falls to 3% but the dollar growth goes to $152 million in gross operating profit. Of course that’s before interest, taxes, depreciation and all that good stuff — and the Caesars Entertainment properties are carrying particularly heavy interest. Mohegan Sun, meanwhile, is working wonders at Resorts Atlantic City, increasing cash flow 600%, to $5 million. Tilman Fertitta‘s people also did well at the Golden Nugget, generating 156% EBITDA growth. By contrast, the maladroit Robert Griffin administration at Trump Taj Mahal saw operating profit fall 39%. The Caesars trio of casinos also had declines, but none that severe.
Granted, Sam Nazarian had to do something with the Sahara, but so far when SLS Las Vegas makes the headlines it’s with another piece of bad news. F&B offerings have been cut back and the nightclub program is struggling. Rationalizes former Revel prexy Scott Kreeger, who now holds the same position at SLS, “we opened the property and the nightlife program heading into a slow season.” (Why?) According to Kreeger, SLS is already regrouping to “come into 2015 with some really strong offerings.”
SLS, which opened targeted to SoCal trust-fund babies and with little understanding of locals casinos is now rather naively counting on Continued >>
Although the American Gaming Association came down against Massachusetts‘ proposed “managed play” system of regulating losses, casino companies are saying, “Not so fast.” Wynn Resorts, MGM Resorts International and Penn National Gaming are all in favor of the idea of allowing players to cap their losses in advance. However, they are opposed to rewarding it with future free-play incentives, fearing that players will set exaggeratedly high limits they have no intention of hitting, qualifying them for free play. Said Wynn’s Robert DeSalvio, “If someone has a problem the worst thing is to give him incentives to come back.” He wasn’t opposed, however, to programming the limits into loyalty cards. Penn and MGM representatives had their own reservations about the program’s feasibility.
The industry representatives seemed more concerned, overall, about players gaming the system to get free goodies than whether or not Continued >>