Ohio cities are trying to use casino revenues to keep pace with Gov. John Kasich‘s austerity regime — and partly succeeding. “It is an important part of the budget, particularly when you look at the fact the state has eliminated almost $13 million in local government funds to the city of Toledo. Thank God we at least had the casino,” said Finance Director George Sarantou. Still, the tax revenues the casinos are bringing in — like Hollywood Toledo‘s $5.6 million — can’t keep pace with the state’s cutbacks. State grants to Toledo have fallen from $21 million in 2009 to $8 million.
Blame some of it, ironically, on casino proponents. Penn National Gaming, shamelessly exaggerated revenue projections, predicted a $651 million windfall. The Department of Taxation and Office of Budget & Management was scarcely more conservative, predicting $643 million. Instead, casinos and racinos generated Continued >>
MGM Resorts International needed to increase net revenue this past quarter by 2% to meet Wall Street forecasts and offset inflation. Instead, revenue stayed flat and the Leo the Lion came in $33 million on cash-flow forecasts and down $12 million on MGM Macau net revenues. Among the bright spots were MGM’s low-end Las Vegas Strip properties, whose revenue per available room rose 4%. Not so good were “weak” table hold on the Strip and Macao cash flow that didn’t even match the most recently adjusted forecasts. VIP player volume in the Chinese enclave was off by a staggering 51%.
While Deutsche Bank had expected Strip net revenue of $1.33 billion, it had to settle for Continued >>
Nobody likes a sore winner and Steve Wynn has nothing but unkind words for Elaine Wynn, a week after she was voted off the Wynn Resorts board. His dismissive attitude toward her criticisms of the board’s composition makes me skeptical that we’re going to see much in the way of diversity on that august (and very white, very male) body. Also, despite having been pummeled by government policy in China, Wynn warbles a sweet serenade to Peking and blames his problems on Continued >>