There’s finally solid ground for optimism with regard to Macao, admittedly a good market to be in even at the worst of times. October gaming revenues surged 9%. Deutsche Bank 
analyst Carlo Santarelli took the numbers with a couple of grains of salt, noting that it was a holiday month and a possible, second VIP-player “retrenchment” might be on the horizon. That being said, both Parisian and Wynn Palace seem to be driving improved results, as was hoped of them. At this time last year the enclave was in free fall, with gaming revenues down 22%. Last month’s numbers were the strongest in 21 months, to give you an idea of the depth of the trench in which operators found themselves. Not even a visit from China‘s premier measurably dampened the October results, though. Neither did Typhoon Haima or the detention of The Crown 18, although the latter could chill VIP play going forward.
JP Morgan analyst Joseph Greff predicts modest growth for the rest of the year, with gambling revenues up 5% next year. Of the publicly traded Macanese operators, he likes MGM Resorts International best from a risk/rewards perspective, but that has to do more with MGM’s stateside operations than Macao. Remember, MGM Cotai has the least table game inventory it can cannibalize from the company’s older property when the new one opens, putting it at a competitive disadvantage.
* A slight correction: Pennsylvania lawmakers have a two-week lame-duck session this month in which they can fix the host-community tax mess. Whether they will is quite another question. For one thing, the House of Representatives’ version, while retaining the state Senate’s $10 million-a-year formula, strikes down the sunset provision, which would have forced a revisit to the issue next session. For another, neither version satisfies prime litigant Mount Airy Casino, which is already promising to go back to court, according to Global Gaming Business.
“This isn’t status quo and it isn’t helping anyone,” said Michael Sklar, attorney for Mount Airy. The state Senate also may not care to take up the matter during its November fortnight. State Sen. Pat Browne (R), whose constituents include Sands Bethlehem, told The Morning Call he and his colleagues would “take a look at it, but we still haven’t decided whether to vote on it.” Interestingly, Sands — which had pronounced itself satisfied with the host-fee structure — is now balking at making voluntary contributions in lieu of taxes, as other casinos are agreeing to do.
* Continuing the Tropicana Las Vegas‘ new reputation as the place shows go to die, revue Cherry Boom Boom closed Oct. 26. However, in a bizarre PR move, the closure wasn’t formally announced until yesterday, five days after the fact. I guess the producers wanted to save face.
* Among the factors that hamstring casino operators in Macao is the inability to offer sports betting. The latter is the sole province of Macau Slot Co., another Stanley Ho monopoly. However, there’s cause for hope — the concession comes up for renewal next year, raising the possibility that the government will allow the casino industry as a whole to get in on the action. In another Macanese development, Studio City marked its first anniversary. Already? Time sure flies when you’re underperforming the market.
Trop…too funny