SLS: Closed by 2016?

That’s the stark implication of some remarks by owner Stockbridge Capital Partners about SLS Las Vegas, which continues to generate negative return on investment. Howard Stutz took a deep dive into the numbers and he must have required a bathysphere to find them. In 2Q15, SLS lost $49 million, for a grand total of $84 million year to date. Stockbridge made three cash infusions, for a total of $13 million, during the summer months, when one would expect SLS to be performing at its best.

Stockbridge said it would keep picking up the tab through Dec. 31, leaving the distinct impression that it would close SLS if there’s not a miraculous turnaround by year’s end. After all, how long is it expected to pour money into a failing resort with sub-zero return?  Although Stockbridge spoke vaguely of cost cuts at SLS, it added that “there can be no assurance that such actions will be effective.” (Speaking of branding problems, James Packer is off to a bad start with alon.)

Whistling past the graveyard, property President Scott Kreeger assured media that Stockbridge would masochistically hang in there until things improve, or something like that. He’s also hanging his hopes on getting walk-in traffic from the obscure, little, $373 million Lucky Dragon Casino, which only began construction in May (on the site formerly designated for condo Allure tower two), which is ‘narrowcasting’ to Chinese and Asian players. Before that it was lower interest rates that were going to turn the trick and before that it was foot traffic from Resorts World Las Vegas, where there is no construction activity to be seen. Taken all together, it’s a collective admission that SLS isn’t enough of a draw on its own. Casino revenue continues to be a distant third as a revenue source … only $9.5 million in the last quarter. In Atlantic City those kind of numbers get you put on the Death Watch. Kreeger would know, as that’s the kind of meager income he saw at Revel.

In the meantime, SLS is scrapping one nightclub (Life) and abandoning the buffet area altogether — such a waste of money and effort. While Stockbridge claimed SLS got a boost from being part of Hilton‘s Curio Collection, it can’t have helped that much, as SLS is looking for other hotel-loyalty programs on which to pin its hopes. At least the Las Vegas Review-Journal has stopped referring to Sam “The Sham” Nazarian as a “visionary,” so there’s some good news.

* SLS isn’t the only company that’s downsizing. International Game Technology is deleveraging by selling empty land, doing a sale-and-leaseback on its corporate campus and unloading the company jet. (Ironic that IGT is doing the latter when its operations are more far-flung than ever.) No more personal junkets for vice-chairwoman Patti Hart. Unlike SLS, IGT’s revenues are up, 36% in the second quarter no less.

* Congratulations to Sands Bethlehem for racking up its best month ever in July. The casino grossed $46 million, pushing Parx Casino out of its traditional #1 spot in Pennsylvania. “We’ve found a niche in table games, particularly with our Asian clientele. The proximity to New York and New Jersey has proven to be a great advantage to us,” said property President Mark Juliano, who obviously didn’t get the memo from Sheldon Adelson that Sands Bethlehem was “a mistake.” (Care to eat those words, Shel?) “Their table games numbers are unbelievable. No one else in Pennsylvania is even close,” said Pennsylvania Gaming Control Board spokesman Richard McGarvey.

Pennsylvania casino revenues were up 7% last month and Parx grossed just shy of $46 million, easily outpacing Rivers Casino‘s $30 million. Harrah’s Philadelphia, Mohegan Sun, The Meadows, SugarHouse and Hollywood Casino at Penn National were all bunched together in the $24 million-$21 million range. The improved numbers at Harrah’s have to be heartening for Caesars Entertainment, which has been losing market share to SugarHouse. Fighting to gain traction was Isle of Capri Casinos‘ resort casino, Lady Luck Nemacolin, which grossed $3 million-plus. Hey, that’s a good month at SLS.

* As it exits the Natchez casino market, Isle of Capri may be planning to sell its gaming barge for scrap. But first it wants a big-ass reduction in its property-tax assessment. Isle and Adams County are not only far apart on the latter, they can’t even agree on the purchase price of the scow.