Prior to its conference call with analysts, Penn National Gaming shared some earnings guidance and hints of what is to come. Perceptions of the performance of Plainridge Park Casino have become something of a sore 
point with Penn execs. While it continues to undershoot Wall Street‘s expectations, the glass is more than half-full when one considers that Plainridge has the highest win/slot/day numbers of any Penn property. However, management continues to fine-tune promotions and marketing, the better to compete with Twin River Casino, which has proven a formidable adversary. It’s concentrating on Marquee Rewards signups, which have reached 160,000 in Massachusetts. Penn is also writing off the costs of its Plainridge license and that of its Hollywood Dayton racino, which JP Morgan analyst Joseph Greff called “not so large in the grand scheme of things.”
As for the big question mark in Penn’s portfolio, the Tropicana Las Vegas, the focus is on “updating the slot floor, altering game placement and refining the table game mix in preparation for the introduction of Marquee Rewards” this spring. The remainder of the year will be dedicated to a makeover of the restaurant offerings. Penn still occasionally drops hints about new rooms, but there’s been none of that today. Deutsche Bank analyst Carlo Santarelli reported that Penn’s early guidance on earnings was ahead of Wall Street consensus forecasts and a “favorable catalyst” for the stock. As for the Plainridge write-off, he said, “While disappointing, given the property opened in June of 2015, we do not believe the write down is overly notable given the visibility of revenue trends at the property and the sluggishness of the ramp.”
* Having left Wynn Las Vegas and recently closed his Tivoli Village restaurant without fanfare, celebrity chef Alex Stratta is calling it quits on Las Vegas. His next venture will be to take the helm at Prado in Phoenix. We hope he finds the Arizona market more hospitable than the Vegas one was.
