Las Vegas Strip casino revenues fell 6% last month, largely thanks to soft table play. Deutsche Bank analyst Carlo Santarelli characterized slot play as “encouraging
and driven primarily by volume,” as the Strip recorded its sixth consecutive month of increased coin-in, up 7%. Since Santarelli had been expecting a flattish 4Q14 he termed the results not “all that meaningful relative to our Company forecasts.” Baccarat revenue plunged 35.5% on 15% lower play. This is a change from 2013, when baccarat carried the Strip. Despite lighter play, non-baccarat table games did 4% than October previous. Over at J.P. Morgan, analyst Joseph Greff was comparably sanguine, writing, “we maintain our positive outlook for the LV Strip and believe the overall recovery will continue for the balance of the year and into 2015.”
Reno posted an 8% increase in a month in which non-Strip revenues tended to seesaw violently. Downtown Las Vegas was stable, with a 1% bump and the unclassified parts of Clark County had a 2% boost. Lake Tahoe shot up 53%. The Boulder Strip plunged 24% and North Las Vegas fell off 15%. Laughlin got off easy, with a 5% decline. Whatever else the locals customer is, he is cautious with his money these days.
* “We think we have too much gaming.” When was the last time you heard a casino executive say that? Probably never. But that was new Foxwoods Resort Casino CEO Felix Rappaport‘s decree and a decision he says probably should have come two years ago (during which time predecessor Scott Butera was focused on restructuring 
debt). So 1,000 slots and 100 tables will go into storage, their place to be taken by “other purposes” (read: nightlife). Rappaport is wasting no time making his operating savvy felt. “The industry in general has become less gaming centric. I think in Foxwoods’ case we have exactly the same opportunities [as at Las Vegas Strip properties],” he told reporters, with amenities going from 20% of Foxwoods revenue base to 30%-35%.
Don’t expect Mohegan Sun to follow suit. CEO Mitchell Etess told Wall Street analysts, “I think we’ve really done a good job at getting the floor down to what’s manageable and what’s right and then scheduling it for the times when the people are here.”
* It’s not every day you see casinos turn down an opportunity to expand, but Delaware‘s three racinos have nixed a down-low proposal from state Finance Secretary Tom Cook that would have allowed them to open slot parlors around the state. Dover Downs, for instance, could have had 1,600 off-site machines. Downs CEO Denis McGlynn was unimpressed with the idea: “If we can’t make money with what we’ve built here, why are we going to go build places to lose more money?”
Instead, the tracks are focusing on tax relief. They’d like credits for facility improvements. They’d also like to see the 56% tax rate on VLTs and table games cut. The state is certain to resist that last idea, as it will mean less dinero for the general fund.
