Citing two unidentified sources close to the matter, CFTN reported Monday that the Hart-Scott-Rodino (HSR) Act guidelines pertaining to the deal will expire Monday night, with no need for Standard General to file a second request with federal regulators.

Under the Hart-Scott-Rodino (HSR) Act, parties to certain large mergers and acquisitions must file premerger notification and wait for government review. The parties may not close their deal until the waiting period outlined in the HSR Act has passed, or the government has granted early termination of the waiting period,” according to the Federal Trade Commission (FTC).

Standard General — the hedge fund that’s the largest investor in Bally’s — floated a $15 per share takeover offer in March. That was upped to $18.25 a share, which the regional casino operator accepted in July.

Standard General Bally’s Buy Not Big Enough to Draw FTC Concern

The proposed deal assigns an enterprise value of $4.6 billion to Bally’s and while that isn’t a small amount of money, it’s not the price point at which the FTC would consider making the buyer make adjustments to the initial deal structure.

For example, the FTC sued to block the $24.6 billion merger of Albertsons and Kroger — the largest deal on record in the grocery store industry — because it’s anticompetitive. Some states have taken up that mantle, too, and have launched their own antitrust investigations into the merger.

Some Democrat donors have reportedly encouraged Vice President Kamala Harris to fire Khan should the former win the presidential election in November. The Harris campaign hasn’t publicly said if such a move is on the table.

Next Steps for Standard General

With federal antitrust concerns apparently not an issue, the next step for Standard General is dealing with regulators in the states in which Bally’s operates land-based casinos. Those are Colorado, Delaware, Illinois, Indiana, Louisiana, Mississippi, Nevada, New Jersey, and the gaming company’s home state of Rhode Island.

Standard General is aiming to have the Bally’s acquisition wrapped up in the first half of 2025.

The post Standard General Bally’s Acquisition Unlikely to Face Antitrust Threats appeared first on Casino.org.

The decision arrived three years after the two companies struck an accord to develop a “mini casino” in what was previously a Macy’s department store at the Nittany Mall — a shopping venue located just five miles from Penn State’s campus. Bally’s wasn’t eligible to bid on the license when the auction was held four years ago, but Ira Lubert — the sole owner of SC Gaming — was eligible due to his stake in Rivers Casino Pittsburgh. He was the winning bidder and later partnered with Bally’s, agreeing that the gaming venue would bear the regional casino operator’s brand.

Amid Bally’s shifting corporate priorities, the agreement was scuttled and Lubert is making clear to state regulators that he has the financial resources to advance the project on his own.

As a part of the Pennsylvania Gaming Control Board’s application and approval process, I demonstrated to the Board my resources and capability to independently develop and operate this casino project without reliance on a third party, including Bally’s,” he said in a statement.

Lubert developed the Valley Forge Casino Resort during the global financial crisis and has a 3% stake in Rivers Pittsburgh.

A Lot’s Changed for Bally’s in Three Years

When? Bally’s and SC Gaming decided to team up on the Pennsylvania mini casino three years ago, the project was inline with the casino operator’s prior ventures. Since then, however, Bally’s rapidly became more ambitious, targeting larger, more expensive developments in bigger cities.

While the future of the Tropicana site is in flux and there are no assurances that Bally’s will procure a downstate permit in New York, the Chicago venture alone requires significant attention from the gaming company, indicating shedding of smaller projects, such as the Pennsylvania mini casino, could be prudent at this time.

Additionally, in July, Bally’s agreed to be acquired by Standard General — the hedge fund that is the gaming company’s largest shareholder. Such a transaction wasn’t on the table three years ago when the operator agreed to work with SC Gaming on the Nittany Mall casino.

Bally’s Has New Vision

Prior to Bally’s accepting the Standard General takeover offer, some shareholders criticized the company for becoming financially strained and placing too much emphasis on expensive projects in Chicago, Las Vegas, and New York. Some investors argued that some or all of those projects should be abandoned in the name of cost savings.

Some cost efficiencies are likely to be realized by dropping out of the Pennsylvania mini casino partnership, but Bally’s didn’t quantify that. With Chairman Soo Kim, the founder of Standard General, likely to take on a larger day-to-day role in Bally’s operations, it’s possible more cost-cutting moves will take place, but that remains to be seen. It is, however, clear that the Nittany Mall casino didn’t fit with Bally’s new vision for its future.

“The termination of the framework agreement aligns with Bally’s long-term strategic goals and allows the company to allocate resources towards other priorities. Bally’s remains confident in its ability to adapt and thrive in the ever-changing market,” said the company in the press release.

The post Bally’s Won’t Participate in Casino Near Penn State Campus appeared first on Casino.org.

The newly issued senior notes mature in 2033 with an interest rate of 6.25% and are “guaranteed by all of Wynn Resorts Finance’s domestic subsidiaries” except Wynn Resorts Capital.

Wynn Las Vegas, LLC will use the amounts to (i) redeem in full Wynn Las Vegas and Wynn Las Vegas Capital Corp.’s 5.500% Senior Notes due 2025 (the “2025 LV Notes”) and (ii) pay fees and expenses related to the redemption and (b) use the remainder of the net proceeds for general corporate purposes, which may include covering all or a portion of the $130 million forfeiture under the non-prosecution agreement described in our Current Report on Form 8-K filed with the Securities and Exchange Commission on September 6, 2024,” according to a statement issued by the gaming company.

Last Friday, Wynn disclosed to investors that it reached a $130.13 million settlement with the Justice Department — the largest-ever penalty applied to a single domestic casino — “based on admissions of criminal wrongdoing,” according to DOJ.

Wynn Bond Sale Implies Swift Payment of DOJ Penalty

While the gaming company didn’t comment on exactly when it will pay the $130.13 million it owes to the government, noting that some proceeds from the bond sale could be used for that purpose implies the casino operator could swiftly deal with that obligation.

In one example highlighted by the DOJ, Wynn Las Vegas permitted a Chinese patron who “had spent six years in prison in China for conducting unauthorized international monetary transactions and violations of other financial laws” to wager at the property.

As part of a nonprosecution agreement (NPA) with the government, Wynn Las Vegas acknowledged wrongdoing and noted that it has extensive measures to bolster its anti-money laundering protocols while telling the government that staffers involved in the questionable transactions are no longer employed by the company.

Wynn Bond Sale Serves Another Purpose

While the Wynn bond sale serves the aim of potentially quickly moving the DOJ liability off its books, the transaction is important because it also allows the operator to redeem bonds coming due next year.

In separate though related news, gaming device and lottery giant International Game Technology (NYSE: IGT) said Tuesday that it’s selling a new euro-denominated bond issue to redeem nearly $500 million in senior secured notes maturing in 2025.

The post Wynn Selling $800M in Debt to Pay DOJ Fine, Redeem 2025 Bonds appeared first on Casino.org.

A recent filing with the Securities and Exchange Commission (SEC) indicates that on September 3, Snowden bought 54,200 shares of the regional casino operator’s equity at a weighted average price of $18.44 per share. That resulted in an overall purchase price of $1 million. The prices he paid ranged from $18.15 to $18.76, according to the regulatory document. Penn closed at $17.67 on Monday, extending a slide that’s seen the stock shed 5.61% over the past month.

Snowden’s purchase of his employer’s stock may signal a vote of confidence in ESPN Bet and Penn’s regional casinos, but the chief executive’s office didn’t comment to that effect. In many cases, corporate insiders buy their company’s stock because they believe it is undervalued and poised to appreciate.

Snowden Buying Penn Dip

Beleaguered Penn investors may well be hoping that Snowden’s recent purchase of the stock is an expression of confidence because the shares have shed nearly a third of their value year to date.

PENN has had a volatile few months, with pressure at the 200-day moving average as well as the $20 region,” according to Schaeffer’s Investment Research. “Despite the red ink in 2024, there’s not a single ‘sell’ rating among the 19 analysts covering the security. Should Penn stock continue to underperform, downgrades could add pressure to the equity.”

The stock has been a battleground this year. In May, investor Donerail Group encouraged the gaming company to abandon its online sports betting ambitions and consider selling itself. That stoked speculation of a transaction in which rival Boyd Gaming (NYSE: BYD) would acquire Penn’s regional casinos and ESPN Bet would be sold to another buyer.

No such deal has materialized as of yet, and Snowden made comments to analysts that indicate Penn isn’t actively shopping itself and that it wants to remain an independent company.

Snowden Buys While Other Gaming Execs Sell

Another reason Snowden’s purchase of Penn stock could be viewed as a positive is because it’s a departure from what’s been seen in the gaming space in 2024. For the most part in 2024, industry executives have been sellers, not buyers, of their companies’ shares.

With the September 3 buys, Snowden now owns now owns a total of 853,045 shares of Penn.

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Well-heeled donors to the Harris campaign have recently increased pressure on Harris to sack Kahn and Securities and Exchange Commission (SEC) Chairman Gary Gensler should she win the White House.

Earlier this year, the FTC announced an investigation into MGM Resorts International’s (NYSE: MGM) response to the September 2023 cyberattack that temporarily crippled the casino company’s domestic operations.

Kahn hasn’t signaled that she’s considering recusal, and the legal wranglings between the FTC and MGM are ongoing.

Kahn was appointed by President Biden in 2021 and her term expires on September 25, meaning it’s likely to be renewed so that the top spot at the FTC isn’t vacant until after the election. Should Kahn commit to a second term, that means unless she is fired by Harris — assuming the vice president wins the election — the FTC chair would occupy that position for a significant portion of Harris’s first term as president.

MGM Director Barry Diller Wants Kahn Gone

IAC/InterActiveCorp (NASDAQ: IAC) Chairman Barry Diller is among the Democrat donors reportedly leaning on Harris and her campaign to remove Kahn. In a July interview with CNBC, Diller called Kahn “a dope” and said she’s against “almost anything” that helps business efficiently grow.

Diller’s conglomerate is the largest MGM investor, controlling roughly 20% of the gaming company’s shares as of May. IAC initiated its MGM stake in August 2020 and added to it three months later.

Mark Cuban is No Fan of Treasury Secretary Gensler

SEC Chairman Gensler has been rumored to be a potential candidate for Treasury Secretary should Harris win the presidency, but that appears increasingly unlikely as some of the vice president’s wealthiest supporters increase pressure on her to fire him, too.

Cuban has long said he wants to partner with Sands on bringing a casino hotel to the Dallas-Fort Worth metroplex.

The post Dem Donors Want Harris to Sack FTC Chair Lina Kahn, Who Sued MGM appeared first on Casino.org.

In a note to clients on Thursday, Deutsche Bank analyst Carlo Santarelli observed that Red Rock’s property-level margin expansion is more sustainable than market participants perceive it to be. The analyst said multiple factors support that thesis.

These three drivers, each of which we break down on their own, are: 1) the current portfolio versus the 2019 portfolio, 2) gaming promotions, which are less structural, but nicely beneficial at present, and 3) the food and beverage segment,” wrote the analyst.

Indeed, Red Rock’s portfolio looks much different today than it did before the coronavirus pandemic. As a result of the global health crisis, the gaming company closed the Fiesta Henderson, Fiesta Rancho, and Texas Station, and never reopened those venues. It also sold the Palms, taking a loss on the deal. Conversely, Red Rock opened Durango in Southwest Las Vegas last December, and that new casino is off to an impressive start.

Market Doesn’t Appreciate Red Rock Changes

Following the pandemic, casino operators, including Red Rock, enjoyed immediate boosts to margins because many culled less profitable nongaming offerings, such as lower-end dining and entertainment options.

“While the most considerable pushback we get to our bullish view on RRR relates to valuation, we also believe there is considerable apprehension related to the margin outperformance, relative to 2019, when looking at RRR on a standalone basis, as well as looking at RRR relative to peers. In our view, the market is underappreciating the true structural changes that are driving the bulk of the margin improvement, changes that do not relate to operating performance, nor the broader competitive environment, to a great degree,” according to the analyst.

Santarelli added that Red Rock is likely to continue its margin expansion event if revenue growth encounters headwinds.

Red Rock Solid By Comparison

Year to date, shares of Red Rock are higher by 9.43%. That’s good for one of the best showings among all small-cap casino equities and it far outpaces broader small-cap benchmarks. Since the start of the year, the Russell 2000 and S&P Small Cap 600 indexes are up 6.7% and 5%, respectively.

Santarelli rates the stock a “buy” with a $65 price target, implying upside of 13.3% from Thursday’s closing price.

The post Red Rock Has Margin Durability, Says Analyst appeared first on Casino.org.

The largest operator of casino resorts on the Las Vegas Strip is selling bonds “in aggregate principal amount of 6.125% senior notes due 2029 at par.” That transaction is expected to close on September 17. MGM will use some of the proceeds to pay an issue that comes due in 2025.

The Company intends to use the net proceeds from the offering of the notes to (i) repay indebtedness, including its outstanding 5.750% senior notes due 2025, and (ii) pay transaction-related fees and expenses, with the remainder for general corporate purposes,” according to a statement. “Pending such use, the Company may invest the net proceeds in short-term interest-bearing accounts, securities or similar investments.”

As is the case with many of its peers, Las Vegas-based MGM sports junk credit ratings, but in the case of the Bellagio operator, it has one of the strongest balance sheets in the industry. The company had $2.41 billion in cash and cash equivalents as of the end of the second quarter.

MGM Bonds Not Highly Risky

S&P Global Ratings rated MGM’s latest bond sale “BB-,” noting there would be a high recovery percentage in the event of a default. The ratings agency used a model to run various default scenarios, but didn’t say the gaming company is a candidate to default on its debt obligations.

“We assigned our ‘BB-‘ issue-level rating and ‘2’ recovery rating to the company’s proposed $675 million senior unsecured notes due 2029. The ‘2’ recovery rating indicates our expectation for substantial (70%-90%; rounded estimate: 80%) recovery for noteholders in the event of a default. This is in line with our issue-level and recovery rating on MGM’s existing unsecured debt,” observed the research firm.

Buyers of corporate bonds typically focus on credit and default risks, which are amplified when evaluating junk-rated debt. The new MGM bonds fit that bill.

As such, issuers of noninvestment-grade corporates must sell those bonds with higher interest rates than higher quality equivalents to compensate bondholders for the elevated risk. The current 30-day SEC yield on the widely followed Markit iBoxx USD Liquid High Yield Index is 6.96%. More than 52% of the bonds in that index carry one of the three “BB” grades — the spectrum in which S&P rates MGM’s newest debt sale.

Eliminating 2025 Bonds is a Smart Move by MGM

Using the newest issue to take care of some of its debt maturing in 2025 could prove to be a shrewd move by MGM. Before the news of the MGM bond sale, Deutsche Bank estimated the gaming company had $1.175 billion in debt at a blended interest rate of 5.5% maturing next year.

Highlighting MGM’s strong positioning on the Las Vegas Strip, free cash flow capabilities, and share repurchases, some analysts are bullish on the operator’s corporate debt.

The post MGM Resorts Upsizes Debt Sale to $850M appeared first on Casino.org.

The picketing began on Harmon Avenue before demonstrators sat down in the hotel’s porte-cochere, an entrance which is used by vehicles.

The demonstration was organized by the Culinary Union as it attempts to reach a contract with the Las Vegas hotel.

In a statement, the Culinary Union described the demonstration as “an act of nonviolent civil disobedience.”

The union represents some 700 hospitality workers employed by the Virgin Las Vegas. They are seeking a five-year contract. The last contract expired in June 2023.

Among those taking part in the picketing were Culinary Union Secretary-Treasurer Ted Pappageorge and President Diana Valles.

We took negotiations to the streets this evening to send a clear message to Virgin Las Vegas that it’s time to do … right by their workers,” Pappageorge said in a statement.

“The last main table negotiations with the company took place in early July, but unfortunately the company continues to stand by its proposal of $0 in raises for the first three years” of a five-year contract.

“The company hasn’t offered more than zero in wage increases for the first three years of the contract since the first day of negotiations and it’s disappointing that we haven’t seen real movement,” he added. Management’s proposal and treatment of workers is “unacceptable,” Pappageorge said.

Management Isn’t Serious

“I picketed outside Virgin Las Vegas because I feel like they aren’t serious about making things right with us,” Pamela Holmes, an usher at Virgin Las Vegas, said in a statement. “It feels wonderful to see all the union members come out and support us this evening on the picket line and be in solidarity with us. I know that all the union workers in this city have our back and we won’t give up fighting until we win the best contract ever.”

Isabel Gonzalez, a guest room attendant at Virgin Las Vegas echoed that sentiment, saying “I want to send a message to Virgin Las Vegas that we are here, we are union, we are gonna stay union, and we want a contract now. Everyone else on the Las Vegas Strip and in Downtown Las Vegas has a new contract and fair raises. Why won’t the company do what’s right by us?”

Recent Strike

In May, the Culinary and Bartenders Unions organized a two-day strike against Virgin Las Vegas, which is owned by JC Hospitality, LLC. It was the first Culinary Union strike in 22 years.

The hotel released a statement to Casino.org on Thursday.

“Virgin Hotels Las Vegas is disappointed by the Culinary Workers Union 226 and Bartenders Union Local 165 plan to picket our property this afternoon. We have made every effort to negotiate in good faith and prioritize the well-being of our team members.? At the end of our last negotiating session on July 11,?we informed the Union that we were willing to meet again as soon as the Union was ready to do?so.?Since?then,?the Union has not contacted us with any potential meeting dates.? It is disappointing to us and all of our stakeholders that the Union is spending time trying to gain leverage through the media rather than working cooperatively and constructively to bring these negotiations to a mutually satisfactory conclusion.? Our operations will be unaffected by the picket,?and we remain committed to providing exceptional service.”

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Alice Leal Guo fled the Philippines by speedboat on July 18 after repeatedly failing to turn up to a Senate committee hearing examining her case.

The agency said this week it believes Guo is taking a circuitous route to the Golden Triangle, a semi-lawless area spanning the intersecting borders of Laos, Thailand, and Myanmar, which is under the influence of triads, drug cartels, and trafficking syndicates.

Shocking Discovery

The?Guo?case became a national sensation after police raided a POGO (Philippine Online Gambling Operator) complex in her town of Bamban in the northern province of Tarlac last February.

Inside, they found hundreds of trafficked workers, Guo’s car, and documents showing the land on which the POGO complex was built was partially owned by the mayor.

Residents of Bamban say that no one knew Guo before she ran for mayor in 2022, which is also when all of her social media accounts were registered.

Meanwhile, investigators have discovered that large sums of money were deposited in Guo’s bank accounts, which were then transferred to other individuals and business entities in China.

The mystery surrounding Guo’s identity has led to speculation that she is a Chinese asset, which she has denied.

Fujian Clan

The PAOCC claims Guo is connected to the so-called “Fujian Clan,” a network of Chinese nationals that?washed at least US$2.2 billion — largely the proceeds of illegal online gambling — through Singapore’s banking system.

“We are confident that she is trying to get into the Golden Triangle,” said Winston Casio, spokesperson of the PAOCC, who added that the Guo family also has business interests in Cambodia, another hotbed of triad scam centers.

“They are part of a big criminal organization. The Fujian Gang, to which the Guos belong. is part of the Golden Triangle Triad,” he claimed.

Guo’s escape from the Philippines has angered President “Bongbong” Marcos. Speaking of those who must have aided her flight, he warned that “heads will roll” over the “corruption that undermines our justice system and erodes public trust.”

The post Fugitive Philippine Mayor Headed to Lawless Drug Region, Authorities Say appeared first on Casino.org.

The new rooms include four suites and 102 traditional guest spaces, and will bring the casino hotel’s room tally to 618. Privately held Circa will open the new accommodations on a floor-by-floor basis. Circa, the highest-rated property in downtown Las Vegas, opened in October 2020 as the first from the ground-up new casino hotel in that part of Sin City in several decades. In a recent interview with Paul Szydelko of Travel Weekly, Circa co-founder and CEO Derek Stevens detailed why now is an appropriate time for expansion.

We had to allow enough time to go by to allow the market and our customer base to tell us what we needed to do for the next step. We needed to get more data to know how we wanted to fill in the rest of the hotel,” Stevens said in the interview.

When Stevens and his partners filed plans for Circa with Clark County, it was stated that the property could eventually feature 777 rooms, but that figure assumed only standard rooms and no suites. He said that tally won’t be reached.

Circa Conquered COVID-19 Headwinds

As noted above, Circa opened in October 2020, meaning the venue faced challenges presented by the coronavirus pandemic.

Stevens hasn’t rested on those laurels. Two years ago, Circa announced plans for 35,000 square feet of new convention space in downtown Vegas, throwing the venue into more competition with Strip rivals in the fight for meeting and convention business. Sin City’s convention business has gradually recovered since the pandemic.

In addition to Circa, Stevens controls D Las Vegas, Golden Gate Hotel & Casino, and the Downtown Las Vegas Events Center.

Expect More Power at Circa

In the Travel Weekly interview, Stevens said that by the middle of 2023 — following the COVID-19 challenges of 2021 and 2022 — he believed there was enough data to make a solid determination on expansion.

As for missteps in the venue’s early days, he told the publication there weren’t enough electrical outlets in rooms. That will be ameliorated with the upcoming additions.

“One thing we screwed up the most is we thought we had a ton of electrical outlets when we opened, and yet we didn’t have enough. We’re going to open all these new rooms with even more electrical outlets than what we’ve had previously,” Stevens said in the interview.

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Crown announced Monday that Carruthers will step down as the group’s chief executive effective September 1. Crown President and Chief Operating Officer David Tsai will become interim CEO on that date.

Crown Resorts Chair John Borghetti, who joined the Crown board in June after heading Virgin Australia, thanked Carruthers for his leadership that came at a critical time in the casino company’s history and resulted in the firm retaining its coveted gaming licenses and the organization undergoing a corporate restructuring.

Under Ciaran’s leadership, Crown has achieved critical milestones including a business transformation and remediation program,” said Borghetti. “Ciaran’s leadership and contribution has been highly valued, and we wish him every success in the future.”

Carruthers will remain with Crown in an advisory role until his full departure sometime before the year’s end.

Successful Tenure

US-based private equity giant Blackstone acquired Crown Resorts and its three casinos — Crown Melbourne, Crown Perth, and Crown Sydney — in early 2022 for more than $6 billion. Crown additionally owns Crown London, a private high-end members club in the ritzy Mayfair neighborhood, Betfair Australasia, and a 50% stake in the Aspers Group, which runs four regional casinos in the United Kingdom.

Blackstone rescued the company founded by billionaire James Packer by agreeing to pay $450 million in inquiry fines. Blackstone, which owns the real estate of several iconic Las Vegas Strip casinos, including the Bellagio, The Cosmopolitan, and Aria, then invested more than $130 million to update Crown’s operations to appease inquiry findings in New South Wales and Victoria.

Blackstone brass tapped Carruthers to lead the firm’s rehabilitation in September 2022. He replaced Steve McCann, who now heads Crown rival Star Entertainment.

Carruthers was credited for improving the organization’s regulatory compliance and enhancing its business performance despite a slowdown in consumer spending.

I am very pleased to hand over a stronger, compliant, and transformed business to its next leader. There is more work to do, but I am very proud of what we have achieved as a team,” said Carruthers.

Carruthers arrived in Australia by way of China’s Macau where he was COO of Wynn Macau and previously senior vice president and director of operations at Sands China’s Venetian and Palazzo resorts. ?

Exit Light on Details

During his time as CEO, Carruthers cut over 1,000 jobs to strengthen Crown’s bottom line. Carruthers said inflationary pressures and interest rate increases stressed consumers’ discretionary spending.

By most accounts, Carruthers’ time was a success. But Crown didn’t specify whether the company is seeking a new leader or if Carruthers’ exit was on his own accord.

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This is the first year of the expanded 12-team playoff bracket format. Under the new system, the teams seeded one through four get byes into the quarterfinals. The four games between the other eight teams will “take place at either the home field of the higher-seeded team or another site designated by the higher-seeded program during the week of Saturday, Dec. 21,” according to the NCAA.

In an interview on the Vegas Sports Information Network (VSiN) last week, Stevens cautioned fans about falling in love with the idea of playoff games on college campuses, noting that there could be “pretty tough economics” associated with the plan and weather could loom large.

Everybody loves the thought ‘OK, Notre Dame is going to play at home the week before Christmas,’” said Stevens. “Maybe Ohio State or Michigan is at home. But you’ve got issues with stadiums, with turf, with student bodies.”

Stevens, a Michigan native and a devoted fan of the University of Michigan, used that school as an example, noting it would be difficult to fill “the Big House” just days before Christmas because students would be home on holiday break.

Stevens Says Las Vegas is a Credible Alternative

In addition to his stake in Circa, Stevens is the co-owner of the D Las Vegas and Golden Gate. All three casino hotels are in downtown Las Vegas.

In the VSiN interview, Stevens said Allegiant Stadium — home of the NFL’s Las Vegas Raiders — should be joined by SoFi Stadium in Los Angeles, AT&T Stadium in Arlington, Texas, and Mercedes-Benz Stadium in Atlanta as hosts of the four first-round CFP contests.

Allegiant Stadium has experience hosting college football games as it’s the home field for UNLV and the host of the Las Vegas Bowl.

Stevens hinted that there may be factors at play in attempting to bring the first-round CFP contests to the quartet of aforementioned venues at some point.

CFP Game Could Be Economic Boon for Las Vegas

Las Vegas hosted the Super Bowl in February and it’s estimated that event had a positive economic impact for the city of more than $1 billion, including more than $230 million in wages and salaries paid to workers.

To date, the NCAA hasn’t publicly floated the idea of playing the first four CFP tilts at neutral sites.

The post Circa CEO Stevens Says Las Vegas Should Host First Week of CFP appeared first on Casino.org.

In a new note to clients, GimmeCredit analyst Kim Noland acknowledged that it’s been a brisk summer for the real estate investment trust (REIT) as it’s engaged in a variety of transactions that support long-term growth, but also resulted in the need to issue some new bonds. Some of those proceeds will be directed to paying for maturing issue that comes due next month.

In addition to agreeing to finance $110 million for the Belle of Baton Rouge to come ashore, GLPI announced in July that it’s providing Bally’s (NYSE: BALY) with $2.07 billion in financing that, among other objectives, will help the regional casino operator complete its permanent gaming venue in Chicago.

The provision of construction financing to tenants has become an important part of GLPI’s growth initiatives,” wrote Noland. “In addition to the July deal, it already agreed to provide Bally’s with construction financing for a sports stadium that complements Bally’s gaming resort in Las Vegas. While construction financing is somewhat riskier than the more usual propco/opco transactions of existing properties, the higher interest income is helping to expand GLPI’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).”

Bally’s and Penn Entertainment (NASDAQ: PENN) are GLPI’s two largest tenants, though the REIT counts other casino operators among its clients.

GLPI Bonds Could Be Supported By Bally’s Rent

In addition to the Chicago financing, GLPI said it’s acquiring the real estate of Bally’s Kansas City and Bally’s Shreveport for a total of $395 million. The combined annual rent on those properties will be $32.2 million, “representing an 8.2% initial cash capitalization rate.”

Financing to clients to enhance venues already owned by REITs is a new growth avenue for GLPI and rivals because, as Noland pointed out, that’s not the typical operating methodology in triple-net leases.

“Second quarter financial results included consolidated total revenue of $381 million (+7%) and adjusted EBITDA was $340 million, a 4.6% increase from $325 million in the prior year period,” said the GimmeCredit analyst. “While annual interest expense has increased to near $350 million (on a pro forma basis), capex is modest since the leases require the tenants to maintain the properties.”

Cash Flow, Rates Could Boost GLPI Bonds

REITs, including casino owners such as GLPI, are sensitive to changes in interest rates. That explains the group’s laggard performance over the past couple of years and why some investors believe real estate equities could rally should the Federal Reserve lower borrowing costs in September.

In rating GLPI debt maturing in 2027 and 2030 “outperform,” GimmeCredit’s Noland highlighted the REIT’s cash flow and strong competitive advantages.

“The gaming REIT has good cash flow visibility; its business model benefits from high barriers to entry due to limited supply and a significant regulatory environment for gaming operator tenants,” she concluded. “While GLPI’s rental income is still weighted toward PENN (see recent PENN report dated August 21) newer tenants such as leading gaming companies Caesars, Boyd Gaming and Bally reduce the risk of individual tenant underperformance.”

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In late July, the online sportsbook operator announced the closure of DraftKings Marketplace and the halting of Reignmakers fantasy sports game that was based on the NFTs sold in the marketplace amid mounting legal challenges. In a civil suit filed in US Federal Court in the Southern District of New York on Tuesday, the NFL players union said it wants monetary compensation for an “anticipated breach of contract.”

DraftKings launched the NFT marketplace in July 2021. In December 2021, the gaming company announced an agreement with OneTeam Partners, the group licensing partner of the NFLPA, that granted the gaming company “licensing rights for active NFL players” to be used on the Reignmakers fantasy sports platform.

NFLPA Could Be Seeking $32 Million from DraftKings

With the court documents currently sealed, identifying how much the NFLPA is seeking from DraftKings is tricky, but it’s possible that amount is $32.39 million.

OneTeam brokered the initial deal between the NFLPA and DraftKings as well as a December 2022 accord under which “select professional football players into limited-edition player cards with a superhero twist using Pixel Vault’s signature intellectual property,” according to a DraftKings statement.

OneTeam’s relationship with the NFLPA? appears strong as the former renegotiated favorable financial terms for players stemming from the iconic Madden video game franchise, as well as payments relating to trading cards.

Why NFLPA is Taking a Hard Line

How the litigation between the NFLPA and DraftKings plays out remains to be seen, but the union protecting use of players’ images and likenesses and deriving compensation from such usage is one of its primary functions.

The gaming company is also one of the official sportsbook sponsors of the NFL, but that relationship is with the league itself, not the players union.

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“It is the largest jackpot in the history of the legalized online casino industry in the United States,” BetMGM,?the iGaming and online sportsbook platform of MGM Resorts International, said in a statement on Tuesday.

The mystery player won “The Big One” jackpot while trying their luck on the Fruit Blaster game.?

Fruit Blaster is a five-reel slot game where winners get various symbols such as oranges, cherries, lemons, and plums.

“BetMGM and one lucky player made iGaming history,” Adam Greenblatt, CEO of BetMGM, said in Tuesday’s announcement.

Jackpot Continued to Grow

“It’s been a summer filled with anticipation watching the progressive jackpot grow quickly to record levels,” Greenblatt added.

The amount in the progressive jackpot reached $4M in February. That was a record for the company.

The amount continued to increase over the following months.

Thrilling, Historic Win

“BetMGM congratulates the winner on this historic jackpot,” Angus Nisbet, vice president of gaming at BetMGM, commented on the payout.

“It’s these — you never know when moments — that make progressive jackpots especially thrilling,” he added in the statement. “In addition to the jackpot, we hope the player enjoys their trip to an MGM Resort in the near future.”

Players can compete for the progressive jackpot by playing online in New Jersey on BetMGM, Borgata, Wheel of Fortune Casino, and Party Casino.

The Big One progressive jackpot on BetMGM in New Jersey was reset after this week’s payout. It was at $1.2M as of Tuesday.

Last year, BetMGM Casino platforms paid out $138M. That represents a 32% jump when compared to jackpots paid in 2022.

Money won by BetMGM Casino players on Entain’s games, such as Bison Fury and MGM Grand Million Megaways, were more than half of the total paid out in 2023.

BetMGM’s online casino games are available to players in Michigan, New Jersey, Pennsylvania, and West Virginia. The platform’s online sportsbook is operational in 22 states plus Washington, DC, and Puerto Rico.

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Members of the Culinary Union applauded and cheered Tuesday morning with the announcement of the tentative agreement, which covers more than 4,000 hospitality workers. Union members will soon hold a ratification vote on the proposed contract.

Details on the agreement have yet to be released.

On Tuesday, Maureen Kimbro, a Culinary Union member and housekeeper at the Venetian/Palazzo, said in a video interview released by the union, “I am so ecstatic.”

I am very excited,” she added. “How things change if we actually voice our concerns and have a group of people that back us up. It makes a lot of difference.”

Kimbro has worked at the hotel for almost eight years.

“We made it happen guys,” she added. “We got it. First-time contract for Venetian.”

Last One On the Strip

“We’re the last one on the Strip and we made it happen,” Kimbro said.

Over the past several months, Culinary Union negotiations have led to many contracts at independent properties and those properties owned by large companies.

In November, Culinary Union members successfully negotiated with Wynn Resorts, Caesars Entertainment, and MGM Resorts International, averting a threatened strike.

Prior Increases

Workers at these properties were given a 10% wage increase in the first year of the agreements. They also got 32% in raises over the life of the deals. There were other gains for union members, too.

It’s not immediately clear if the workers at The Venetian/Palazzo achieved similar salary increases.

When reached for comment, The Venetian and The Palazzo released a statement that said in part, “We look forward to ratification of the agreement and to a positive and productive relationship working alongside both The Joint Executive Board and our Team Members.”

Culinary Workers Union Local 226 and Bartenders Union Local 165 are Nevada affiliates of the national Unite Here union and represent 60K workers in Las Vegas and Reno, including at most of the casino resorts on the Las Vegas Strip and in Downtown Las Vegas. Members include bartenders, bellmen, cocktail and food servers, cooks, guest room attendants, kitchen workers, and porters.

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When Betfred ceases offering mobile sports betting in Colorado and Ohio later this month, that will leave Arizona, Iowa, Pennsylvania, and Virginia as the states in which it offers online sports wagering. The gaming company also runs retail sportsbooks in Louisiana, Nevada and Washington State. In an interview with EGR North America, Betfred USA CEO Kresimir Spajcic said the operator is working to bolster its share in the US, but noted profitability is key.

I truly believe that my team and I can create a sustainable business. The question is: Can you make a business profitable enough to make sense to continue operating in the U.S. versus putting this effort and investment elsewhere that might yield a bigger return?,” said Spajcic in the interview.

The chief executive officer of Betfred’s US business told the publication that he’ll have a better sense of the operator’s path forward in the US by the end of this year and that an outright departure from this market would be considered “if we don’t have enough value that we can create within the US.”

Betfred Could Be Latest US Sports Betting Casualty

It’s been just over six years since the Supreme Court ruling on the Professional and Amateur Sports Protection Act (PASPA) and nearly as quickly as the domestic sports wagering industry expanded, it’s fallen in population.

The point is nearly every other operator that is not DraftKings and FanDuel has found it difficult to compete against the duopoly and those challenges are amplified for foreign companies such as Betfred that aren’t familiar to US bettors.

What’s Next for Betfred in US

For now, it appears as though Betfred wants to make a go of it in the states in which it continue offering mobile sports betting, but Spajcic told EGR it’s possible the operator decides to exit more states before the end of this year.

However, he also added that Betfred is working on some agreements and projects that could bolster the company’s position in the US. Likewise, Betfred is also looking into reworking some old accords that benefit the gaming firm.

Profitability in the US appears to be the point of emphasis for Betfred today and if that’s not attainable, the operator could abandon the market over the near- to medium-term.

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To be precise, Icahn owns 2,440,109 shares of the gaming stock, according to a Form 13F filing with the Securities and Exchange Commission (SEC). Large money managers and other professional investors are required to publicly disclose equity stakes 45 days after the end of the prior quarter so it’s possible that Icahn’s Caesars position has increased or decreased since the end of June.

At the end of May, Icahn told financial media outlets that he had amassed a “sizable” position in the Harrah’s operator. “Sizable” is in the eye of the beholder. Caesars has 215.44 million shares outstanding, according to Finviz data. That means Icahn owns about 1.1% of the gaming company’s shares outstanding.

On a percentage basis, that makes Icahn one of the biggest Caesars investors, though still outside the top 10. The two largest owners of the shares are Vanguard and BlackRock, which combine to own 18.67% of the stock.

Icahn Says He’s Not Considering Activism with Caesars

When he revealed his Caesars investment to CNBC in late May, Ichan said he’s not considering activist action with the gaming company, signaling he’s a passive investor and like all the others in that camp, he’s hoping the gaming stock increases in value.

One thing is clear: market participants view Icahn’s renewed ownership of Caesars stock favorably. Two of the stock’s best intraday performances in recent months were the day the financier confirmed the stake and today when the size of the investment was made clear.

On that note, it’s likely that unless Icahn Enterprises bought Caesars just days prior to May 31, it is holding a position that’s in the red. The stock slumped in April and May and while it’s rebounded off the late May lows, it still has work to do to reclaim the second-quarter highs.

Catalysts that Could Spark Caesars Stock

While it’s likely Caesars currently represents a loss for Icahn Enterprises, there are catalysts that could emerge to galvanize the shares.

Those include increasing profitability in the operator’s digital division, ongoing progress in reducing one of the industry’s largest debt burdens, the Federal Reserve lowering interest rates, and potential asset sales.

Reeg has been consistent in his view that the company would consider divesting casinos it views as “non-core” and those that aren’t generating adequate cash flow.

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That sets the stage for the casino operator to enter into even more direct competition with rival Golden Entertainment as well independent tavern purveyors such as Dotty’s. The Nevada Gaming Commission (NGC) will soon consider Red Rock’s request to launch the Seventy Six by Station Casinos brand. The gaming company is aiming to open its first limited license bar in North Las Vegas by the end of September. From there, Red Rock’s gaming bar business could rapidly expand.

So the first one will come online in September, the second one in January and the third in June of next year. So we have contracted 7 units,” said President Scott Kreeger on the company’s second-quarter earnings conference call last month. “We’re always out there looking and trying to cut deals on new development opportunities. So that’s an ongoing effort, but that’s the timing of the first 3.”

In Nevada, gaming taverns feature bars and restaurants and are classified as restricted venues because they are allowed a maximum of 15 gaming devices. Those machines feature keno, slots, and video poker, but there are no live table games in the venues.

Red Rock Pub Entry Could Spark Family Feud

Red Rock is already one of the largest operators of casinos that target the Las Vegas locals segment and none of the company’s venues reside on the Strip. Its Stations brand is one of the recognizable in the locals market indicating the company could leverage it for success in gaming pub space.

Golden’s PT’s Pubs units owns gaming bars in Nevada under the Lucky’s, PT’s Gold, PT’s Pubs, PT’s Ranch and Sean Patrick’s brands, among others. As of the end of the second quarter, Golden owned 71 gaming bars and it expects that tally to increase by at least one by the end of this quarter.

Specific to Red Rock’s tavern plans, the Seventy Six brand is a reference to the year in which Station Casinos was founded. Frank Fertitta took the company public in 1993 and today there are four Las Vegas-area casinos bearing the Station name.

Las Vegas Tavern Biz Competitive, Sensitive to Consumer Trends

Golden and Red Rock have the financial resources needed to expand their gaming tavern footprints, but the space is nonetheless competitive. In Las Vegas, competitors included recognizable brands such as Dotty’s and Jackpot Joanie’s as well as hundreds of independent stores.

The core customer for many of these venues is often seeking a no frills but still comfortable and familiar experience and many are sensitive to macroeconomic trends.

On the gaming company’s second-quarter earnings conference call, Golden President Charles Protell? said spending and visitation among lower-tier customers at its Nevada casinos declined during the April through June period. That’s meaningful because those trends often carry over to consumer spending at gaming pubs.

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New York-based Dreamscape didn’t mention a specific number of positions that were eliminated at Rio. As of late Thursday, the company hasn’t filed a Worker Adjustment and Retraining Notification (WARN) Act notice with the Nevada Department of Employment, Training and Rehabilitation (NDETR).

As the resort undergoes extensive construction and remodeling, we now have a better understanding of the staffing levels Rio Las Vegas needs to provide guest service and operational efficiency. We deeply appreciate the unwavering commitment and diligence of all our team members and extend our heartfelt gratitude to those directly affected by the adjustments,” said Dreamscape in a statement provided to Las Vegas media outlets.

The company said the layoffs are the result of it getting a better handle on the Rio’s staffing needs following the 2023 acquisition of the operating rights from Caesars Entertainment.

Layoffs Not Permeating Gaming Industry … Yet

Economic data, including the July jobs report, indicate the US economy is cooling, but to date, the most notable headcount reductions in the gaming industry have occurred at digital units, not land-based casinos.

However, none of the major casino operators in Las Vegas have announced significant layoffs this year. If anything, gaming companies struggled with staffing shortages over the past several years with some boosting wages and starting pay to lure more job applicants.

This year, the only WARN notice filed by a gaming entity in Nevada was attributable to the Mirage, which temporarily closed for new construction. Bally’s, the operator of Tropicana, provided compensation packages to workers affected by the closure of that casino hotel and attempted to find new positions for some.

Dreamscape’s Rio History

A $516.3 million sale-leaseback deal between Dreamscape and Caesars in December 2019 gave Dreamscape of the Rio property while Caesars continued to run the resort. That arrangement ended in the fourth quarter of 2023 when the real estate investment trust (REIT) took over operational control of the Rio.

“Today’s travelers are looking to experience Las Vegas in a new way. Dreamscape believes the city’s next-gen clientele will demand something different, something deeper, something unexpected, and something seamless. With this in mind, the Rio will soon offer an entirely refreshed suite of dynamic and broader programming,” according to Dreamscape.

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On Wednesday, the Nevada Gaming Control Board (NGCB) approved the payout, advancing that recommendation to the Nevada Gaming Commission (NGC). The NGC will take up the matter at its meeting later this month.

Should the distribution be approved by the NGC, Apollo would disburse the Venetian cash to itself and its investors. Potentially bolstering the case for the NGC to sign off on the move is the point that it would not imperil Venetian’s financial position.

We don’t need the $550 million to execute against the business plan,” Venetian CFO Robert Brimmer told the NGCB. “We have adequate liquidity and we have our capital source. With the money we have and cash flow we expect to generate, we’re able to invest this $1 billion over the next 18 months.”

At the end of last month, Venetian had $830 million in cash meaning there’d be $280 million left over if the $550 payout is approved.

In March 2021, Las Vegas Sands (NYSE: LVS) announced the sale of the aforementioned integrated resort and convention center assets to Apollo and VICI Properties (NYSE: VICI) for $6.25 billion. The private equity giant paid $2.25 billion for the operating rights while VICI paid $4 billion for the real estate.

Apollo Displaying Strong Commitment to Venetian

Since taking control of the Venetian, Apollo has bolstered the venue’s financial standing while taking steps to enhance its image in Las Vegas. For example, the financial firm doled out $11 million to 7,000 full-time and flex-time workers at the integrated resort in December 2022.

“If you walk through the property, it is different than it was two years ago and we’re just getting going. We have $1 billion in our capital plan, of which we will deploy $900 million over the 2024-25 time period,” Brimmer told the NGCB. “The asset is in great shape, and once we finish our plan toward the end of 2025, we will be in the best condition in the last 25 years. The goal here is to create more compelling experiences for guests and create strong returns for our investors and more opportunities for our team members.”

Efforts such as those are crucial, particularly from a public relations standpoint, because Apollo has a long history in Las Vegas, and not all of it is positive.

Apollo and fellow private equity firm TPG Capital executed a massive $30 billion leveraged buyout of a previous iteration of Caesars Entertainment in 2008. Nine years later, the debt-laden gaming company filed for bankruptcy, and in 2019, Apollo and TPG sold their equity stakes in the operator.

Under Apollo, Venetian Thriving

Since February 2022, Apollo has made $490 million in investments at Venetian, including new eateries as well as a fresh sportsbook and poker room.

“We’re meeting budgets in the first half of the year and market trends continue to be very strong, as evidenced by the financial results the Strip released last week,” Brimmer said at the NGCB meet. “The Venetian continues to grow market share.”

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The Las Vegas-based company previously confirmed interest in Thailand, but comments made by executives to that effect on a conference call with analysts this afternoon are among the operator’s most over to date on the matter.

We would pursue it out of Wynn Resorts out of the U.S.-listed entity,” said CEO Craig Billings in response to a question from Morgan Stanley analyst Stephen Grambling. “It’s still early days. You’re right, there has been progress, and it’s encouraging to see, and it seems as though the legislators in Thailand really want to get this moving, which is great.”

In prepared remarks earlier on the call, Billings identified Bangkok as the city Wynn is likely to focus on in pursuit of a Thailand casino license. That’s country’s capitol city and its largest by population.

Good Timing for Wynn to Comment on Thailand

In what’s no more than interesting coincidence, Wynn’s second-quarter earnings report arrived a day after Thai politicians posted draft rules pertaining to casino gaming in the country. Citizens there have until Aug. 18 to comment on the matter.

Those are among the details that are known at this point, but they haven’t been formally approved, meaning gaming companies and their executives are still in wait-and-see mode on Thailand.

“We need to see more details on the regulatory and licensing structures, but the market is an attractive market, and it’s probably conducive to meaningful investment, pending, again, a deeper understanding of the regulatory and licensing structure, you have amazing tourism infrastructure, you have a really strong service culture and a favorable operating expense, structure available in that market,” added Billings on the call. “So we’re continuing to monitor the process very, very closely and we’re active on the ground there.”

Wynn Touts UAE Progress

In the second quarter, Wynn contributed $357 million of its equity to the Wynn Al Marjan Island project in the United Arab Emirates (UAE). That include the acquisition of a 40% pro rata share of 155 acres on the island on which the venue is being built.

“As a result, our joint venture now owns not only the land under Wynn Al Marjan, but also 70-plus acres of land for potential future development on the Island,” noted Billings. “Of course, we have banked land before in the US and Macau, and we are confident that acquiring this sizable Al Marjan land bank will prove valuable over the long term.”

Hotel construction is now up to the 15^th floor and stands at 90 meters, making the Wynn venue already tallest building in that Emirate. Last week, the General Commercial Gaming Regulatory Authority (GCGRA) approved a lottery in Abu Dhabi — a move some industry observers expect will pave the way for approval of casino gaming. Should that happen, Wynn could have a significant head start on rivals eyeing the UAE.

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Gov. Jim Justice (R-WV) — the frontrunner in the state’s US Senate race — said the foreclosure is political stunt by JP Morgan Chase, which is the bank holding the loan on the property. Justice acquired Greenbrier out of bankruptcy in 2009. In 2014, Justice received a loan for Greenbrier from the bank backed by a promissory note for $142 million. That agreement made Chase the holder of the deed of trust.

Last month, Chase informed the governor the loan on Greenbrier had been sold to Beltway Capital. In a statement, Justice claimed that upon purchasing the loan, Beltway immediately declared it in default.

The Governor and JPMorgan have been working in good faith under a mutual agreement since 2021 and under that agreement the Governor’s debt to JPMorgan has been reduced to $9.4 million, according to a statement issued by the Justice family. “Performance and payments to JPMorgan have even been made as recent as the end of June of this year.”

MetroNews reported that the property being foreclosed on includes the Greenbrier Hotel and the parking lot, but because other firms own the golf course and tennis courts, those assets are not part of the foreclosure. However, the casino is in the hotel, meaning it’s part of the default proceedings.

Justice Claims Foreclosure Is Political Stunt

Greenbrier is the only traditional casino hotel in the state with the other three gaming venues classified as racinos — casinos combined with racetracks. The Mountaineer Casino, Racetrack & Resort is operated by Century Casinos (NASDAQ: CNTY).

“This deceitful move by JPMorgan is nothing more than the latest political stunt by the Democrats to undermine the next Republican Senator from West Virginia. In recent days, JPMorgan CEO Jamie Dimon’s staunch ties to the Democrat party and his support for the Biden-Harris administration and continued control of the Senate by the Democrats have been well documented,” added the Justice family in the press release.

While Dimon has traditionally donated to Democrats, there has been speculation that if former President Trump reclaims the White House in November, he’d name the JPMorgan chief executive officer as Treasury Secretary.

Auction Could Affect Greenbrier Casino

Should the Justice family not find a workable solution to maintain control of the Greenbrier, it’s possible that the new owners make changes to the casino or potentially close that part of the property, putting it different use. That hasn’t been determined of yet. The public auction for the property will be held in Lewisburg on Aug. 27.

Greenbrier is also home to a FanDuel sportsbook and that operator was the first to offer mobile sports wagering in West Virginia.

Today, the state is home to a variety of online sportsbooks and is one of just six to permit iGaming.

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The chief executive office made that clear on the company’s second-quarter earnings conference call late Wednesday. MGM China, which is helmed by Pansy Ho, runs two integrated resorts in Macau — MGM Cotai and MGM Macau.

Next month, myself and Pansy Ho will be in Thailand looking at that opportunity. That is a venture that we’re interested in. And if we do, do that, we’ll do it through MGM China Holdings,” said Hornbuckle on the call.

No further mention of MGM’s potential Thailand ambitions was made on the call, but Hornbuckle’s comments arrived just a day after research firm CLSA published a report in which it estimated annual gross gaming revenue (GGR) for Thailand casinos — when the venues are fully ramped up — could reach as much as $15.1 billion.

MGM Has Well-Documented Interest in Thailand

MGM Resorts International has already clearly signaled interest in Thailand and Hornbuckle’s declaration that such an effort would run the operator’s China unit is the first inkling of the company’s approach to the Southeast Asian nation.

Hornbuckle telling analysts that MGM China would run the Thailand effort is confirmation of speculation that surfaced in June when Ho reportedly met with Thai tourism officials in an effort to promote travel to Macau among Thai tourists.

There are already significant ties between Macau and Thailand as the latter ranks among the top countries for inbound arrivals to the Asian casino hub.

MGM Eyeing UAE, Too

MGM’s international exposure consists of MGM China and an integrated resort in Osaka, which is expected to open in 2030, indicating that Thailand could add diversification to the operator’s portfolio. The United Arab Emirates (UAE) could be part of that equation as well.

Earlier this week, the General Commercial Gaming Regulatory Authority (GCGRA) approved a lottery in Abu Dhabi, sparking hope that broader gaming regulations could emerge there. That could position UAE as the next lucrative international casino frontier. MGM and a local partner are building a non-gaming hotel in Dubai, but there is space there for a casino and the company has previously said it could quickly pivot if gaming expansion takes hold there.

“With UAE, I think, the great news is now that they’ve announced the lottery, which is something that they said they would do. I’m encouraged that the rest of this will roll out as defined. Now timing is still unknown. It kind of keeps moving around,” said Hornbuckle on the call. “But I can’t imagine by end of this quarter or into early next, we won’t know with some specificity around what it means for Abu Dhabi and then potentially what the umbrella language is as it relates to all of the other Emirates.”

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The owner of the Venetian on the Las Vegas Strip said it now expects AFFO for this year to be $2.35 billion to $2.37 billion, or between $2.24 and $2.26 per share. For the June quarter, VICI’s AFFO was $592.4 million, a 9.6% increase from the year-earlier period.? On a per-share basis, that was 57 cents, up from 54 cents in the second quarter of 2023.

The real estate investment trust (REIT) said the upped 2024 outlook is reflective of management’s views on “current and future market conditions.”

The increased AFFO could be a signal that various investments made by VICI — some recent and some outside gaming properties — are paying off.

We believe these investments demonstrate that VICI has advantageous levers for sustained, sustainable growth with quality tenants in durable sectors across attractive geographies,” said CEO Edward Pitoniak in a statement.

Shares of VICI rose slightly in after-hours trading following the report. The stock is down 1.94% year to date, but has been on a torrid pace as of late, surging 12% over the past month.

Venetian Paying Dividends for VICI

In March 2021, VICI acquired the real estate of the Venetian and what was then Sands Expo & Convention Center for $4 billion. The relationship with operator Apollo Global Management has since expanded and is proving fruitful for both parties.

More recently, VICI and other REITs have shown a willingness to extend financing to tenants to improve gaming venues. Not only does that diversify REITs’ revenue streams, but such transactions serve the aim of boosting property values, which is beneficial to landlords.

“The Venetian Capital Investment exemplifies the value of our Partner Property Growth Fund strategy, which provides attractive capital deployment opportunities to invest into existing VICI assets at scale, and the Great Wolf transaction demonstrates VICI’s ability to recycle capital via our VICI Experiential Credit Solutions strategy,” added Pitoniak in the press release.

More Help for VICI Could Be on the Way

Arguably, some of the recent rally by shares of VICI is attributable to increasing speculation that the Federal Reserve will lower interest rates in September. That would be beneficial to VICI on at least two fronts.

VICI, which is the largest owner of Las Vegas gaming real estate, had $347.2 million in cash and cash equivalents at the end of the second quarter.

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The filings were made by 16 Minutes LLC, a Tennessee-based limited liability corporation that appears to be named as a reference to “15 minutes of fame.” Welch is from the Volunteer State and while some might argue her 15 minutes are up or expired some time ago, she’s milking it for all it’s worth as highlighted by trademark applications for comedy shows, condiments, gum, hats, mouthwash, sunflower seeds and shirts in addition to sports betting.

For those not in the pop culture know, Welch rose to internet stardom (or infamy) last month when in a man-on-the-street interview conducted in Nashville by the YouTube channel Tim & Dee TV, she made an onomatopoeia in reference to the release of saliva during a particular sexual act.

You gotta give ’em that ‘hawk tuah’ and spit on that thang,” said Welch in a response to a sexually charged question.

From there, “Hawk Tuah Girl” was born.

Will Hawk Tuah Girl Make Gaming Inroads?

It’s common for athletes and celebrities to file trademarks and patent applications and not make use of them upon award. That could be the case with Welch or she could continue capitalizing on her instant stardom and carve out a niche in the betting world.

“Bet On That Thang trademark registration is intended to cover the categories of sports betting services; Wagering services; Arranging of contests featuring casino gaming; Entertainment services, namely, casino gaming,” according to the US Patent and Trademark Office (USPTO).

With football season fast approaching, Welch’s foray into sports betting, if it materializes, could prove well-timed.

Hawk Tuah Girl Already Has Loose Gaming Ties

Welch already has some ties to the gaming industry. Her first paid appearance following the now infamous June video occurred on July 8 at the Daer Dayclub at the Hard Rock Hotel & Casino in Hollywood, Fla. That venue is owned and operated by Hard Rock International, which is controlled by the Seminole Tribe.

She’s also used her new-found fame for good, leveraging fresh social media notoriety to call attention to animal shelters in the Nashville area.

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Peru authorized new online gaming regulations last November. The country is the third in the region in which Rush Street Interactive has entered following Colombia in 2018 and Mexico in 2022. It’s estimated that online sports betting drives an annual handle of $1 billion in Peru, and with the government’s favorable 12% tax rate, it could be a compelling market for operators such as RSI.

Notably, RSI has become the first operator to be fully licensed under the Peru’s new regulatory regime demonstrating its ability to meet rigorous compliance standards and aligning with the company’s strategy of entering regulated markets with strong growth and profitability potential,” according to a statement issued by the Chicago-based gaming company.

Rush Street Interactive was the first US-based operator to establish itself in Mexico — Latin America’s second-largest economy — and the RushBet brand is now among the leaders by market share in Colombia.

LatAm May Not Be Appreciated in RSI Investment Thesis

With the stock up 127.39% year to date, it’s hard to complain about RSI’s performance, but much of the upside has been fueled by the operator’s profit and revenue growth, as well as speculation that the company remains a prime takeover target.

By establishing itself in the region, RSI could eventually tap into other markets there, including Argentina and Brazil — the latter of which is the region’s biggest economy and home to its largest population. Specific to Peru, that country is home to more than 34 million people, meaning it would be the second-largest state behind only California.

“The Peru launch enables RSI to optimize its Latin American operations by sharing resources, including marketing assets and customer service teams, across multiple countries. This approach is expected to drive operational efficiencies and expand long-term growth in the region,” RSI added in the press release.

Why Peru Matters to RSI

As noted above, Peru offers RSI several advantages that may not yet be fully appreciated by the industry or the investing public. Those include a favorable tax percentage, strong regulatory guidelines, and a sizable population.

“This launch is not just about entering a new market; it’s about building on our vision to create an engaging, unique online gaming experience across the Americas,” said RSI CEO Richard Schwartz in a statement.

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The new rewards platform known as Club Jewel was born out of suggestions from guests that frequent both Water District gaming venues and makes sense because both properties share an owner — ECL Hospitality Management, LLC.

It has always been our top priority to listen carefully to the feedback of our valued guests, and today marks an important milestone in our commitment to their satisfaction,” said Tim Brooks, general manager of the casinos, in a press release. “The result of our efforts in this consolidation not only simplifies the gaming experience, but also underscores our commitment to improving every aspect of each guest’s interaction with us.”

The casinos’ previous loyalty programs were Rainbow Rewards and Emerald Rewards.

Emerald Island, Rainbow Club Loyalty Combination Makes Sense

Last November, privately held ECL Hospitality Management acquired both casinos, meaning it’s practical that the two loyalty programs have been trimmed to one that is applicable at both venues.

The new Club Jewel simplifies the rewards structure which is something many customers look for in a gaming loyalty plan but find difficulty locating.

Among the various casino rewards programs — and there are plenty — there isn’t a lot of uniformity in terms of how points and tier credits are accumulated and each operator uses different lingo that points-enthused customers need to be aware of.

Emerald Island, Rainbow Club Casino Details

Both Emerald Island and Rainbow Club are considered locals’ casinos. The former has no table games, but it has more than 450 gaming machines, including keno, slots, and video poker as well as a William Hill sportsbook.

Boulder Highway Gaming, LLC and Water Street Gaming, LLC sold the properties to ECL Hospitality. Emerald Island is more than 20 years old.

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In an interview with the Las Vegas Review-Journal, Bally’s Chairman Soo Kim, who’s also the founder of Standard General — Bally’s biggest investor and the buyer in a $4.6 billion takeover announced last week — called Las Vegas “the gaming capital world.” He added that US casino center is part of the operator’s long-term strategy.

We aspire to be an omnichannel operator (and) we aspire to be an international operator. (But) I think you have to be in Vegas,” said Kim in the interview. “Having a presence in Vegas is actually quite strategic for us.”

In an April 2021 transaction, Bally’s bought the nonland assets of Tropicana Las Vegas for $148 million. That deal was finalized in September 2022. Penn Entertainment (NASDAQ: PENN) previously operated that casino hotel. Bally’s only other Nevada venue is in Lake Tahoe.

Kim Sees Opportunity at Tropicana Site

Tropicana Las Vegas was shuttered in April and demolition is scheduled for October. Soon after acquiring the operating rights to the venue, Bally’s signaled that it could consider tearing it down and later building a from-the-ground-up integrated resort that improved upon the old Tropicana.

“There’s a certain pessimism (in the markets) … but, what I would say about the Tropicana (site) is that I think it’s a tremendous opportunity,” Kim told the Review-Journal. “I think the right project (there) will be financed, and I feel quite confident in that.”

On the company’s third-quarter earnings conference call last November, Bally’s CEO Robeson Reeves said the operator would be open to selling Tropicana’s operating rights, but added the venue’s current value is “enormous.”

“Although we have some short-term pain, this is an extremely valuable asset,” he told analysts.

What Future Holds for Bally’s in Las Vegas

In the most optimistic scenario, the A’s will proceed with their move to Las Vegas, a stadium will be built on the Tropicana site, and Bally’s will procure the financing needed to develop another casino hotel near the new stadium.

“(Bally’s has) taken a pretty active lead role now in the process — I’ll call it the process there in Las Vegas. Pretty clear to us that the stadium will likely be built and that the design will work in conjunction with what planning that Bally’s is doing at the site,” Carlino told analysts.

GLPI owns Tropicana’s real estate and agreed to a series of transactions with Bally’s that provide crucial financing for the gaming company’s permanent casino hotel in Chicago.

The post Bally’s Chairman Kim Says Company is Committed to Las Vegas appeared first on Casino.org.

The NTC committee will look at the impact that one or two casinos could have on the DFW region and how they would impact economic development, the workforce, infrastructure, transportation, and public safety.

“It will provide a venue in which skeptics and critics of destination resort casino legislation can have their questions answered and concerns allayed, potentially reducing any extant opposition,” Mark P. Jones, a professor at Rice University, told Casino.org.

“And it will underscore to Republican state senators and representatives who are still on the fence regarding destination resort casinos the preference of many of their key stakeholders for destination resort casino legislation.”

Bills to pave the way for destination casinos in Texas have failed to get needed legislative approvals. Legislation is likely to be reintroduced in 2025 as a large number of Texas voters appear to back the proposals.

DFW Senate Republicans are Key

Jones said seven Republican state senators whose districts include portions of the DFW metroplex are “the most crucial to the destiny of casino resort legislation in 2025.”

“Key stakeholders in a wide range of industries spanning construction, convention, and social welfare can brainstorm and come up with a concrete set of plans which can be put into action the moment legislation is passed in the Texas Legislature,” he added.

Clyde Barrow, a political scientist at the University of Texas Rio Grande Valley, told Casino.org that if the committee works well, it “will provide detailed information on the economic and fiscal benefits of casino gaming (at least in DFW), as well as detailed and quantifiable information on the social and economic costs of legalized gambling, such as problem gambling prevention and treatment, local infrastructure costs (e.g., roads, off-ramps, signaling, water and sewer), regulatory costs, and public service impacts (e.g., police, EMS, fire protection).”

These types of studies allow state and local government officials, as well as the business community, to critically assess the claims of lobbyists and move toward legislation that could truly benefit the state and potential host municipalities,” Barrow said.

The committee will be made up of representatives from the region’s businesses and wider community, according to the Dallas Business Journal. Members still need to be appointed.

The new committee was discussed at Wednesday’s roundtable discussion sponsored by the NTC and the Texas Association of Business. Among those backing casino legislation at the roundtable was Andy Abboud, senior vice president of government relations at Las Vegas Sands (LVS). Chris Wallace, CEO of the NTC, is also supportive, the Journal reported.

Limited Number of Casinos

Aboud told the roundtable that Texas wouldn’t have casinos in every community.

It doesn’t need to be everywhere,” Abboud said. “It doesn’t need to be on every corner. If you diminish the market, you diminish the investment and you’re just diminishing the economic impact that it can have.”

George Zodrow, professor of economics at Rice University, was hired by LVS to do a study on the issue. He predicted that gambling could add $13B to the state’s economy and lead to 70K permanent jobs. DFW alone could see $34.7M in added tax revenue.

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The Republican-controlled committee passed the bill last month. Not only does it propose to trim the FTC’s budget by 27%, it contains an amendment that would halt the FTC’s efforts to force MGM to comply with a Civil Investigative Demand (CID) issued in January. The following month, MGM attempted to quash that request, noting that some of the information demanded by the FTC could jeopardize the gaming company’s efforts to assist law enforcement agencies in pursuing criminal charges against Scattered Spider — the hacking group that carried out the cyber attack against MGM.

The core mission of this bill is to protect the integrity of America’s financial and judicial systems,” said Rep. Dave Joyce (R-OH) in a statement. “In order to fulfill that mission, this bill makes cuts to prevent agency overreach by prohibiting funds for dozens of regulating actions such as blocking the FCC from regulating broadband rates, the FTC from controlling how every day Americans purchase a car, and the SEC from collecting and surveilling transactions of everyone who invests in the stock market.”

Joyce is the chairman of the Subcommittee on Financial Services and General Government.?It’s not clear when the full House will consider the legislation.

MGM Capitalized on the System

Earlier this year, MGM fired back at the FTC, suing the commission on the grounds that as a gaming company, the Red Flag and Safeguards statutes the agency is attempting to enforce aren’t pertinent. Those guidelines are typically used in enforcements against financial services firms.

Included in the suit was a request to the court by the gaming company that FTC Chairwoman Lina Khan recuse herself from the case because she and several staffers were guests of the MGM Grand on the Las Vegas Strip during the data breach.

MGM has donated $104,801 to individual candidates and PACs this cycle and spent $230,000 on lobbying this years, according to Open Secrets. The largest individual recipient of the company’s political donations this cycle is Rep. Susie Lee (D-NV) who represents suburban Las Vegas.

Congressional Attacks on FTC Not Uncommon

The aforementioned spending bill contains several other provisions aimed at reining in FTC enforcement efforts and potential overreach. It’s also not unheard of for Congress to use the power of the purse string to halt various FTC enforcement efforts.

In 1980, Congress passed a law that gave it veto power over some FTC actions and allowed lawmakers to cap the commission’s use of administrative subpoenas. Whether or not that helps MGM in its case against the FTC isn’t clear, but some legal experts believe the company’s status as a multiple offender on the cybersecurity front is hard to ignore.

The FTC could leverage MGM’s reputation for slack cyber defenses prior to the hack against it. Last September, Boston-based BitSight, a cybersecurity ratings and analytics company, graded MGM’s patching cadence with an “F.” Patching cadence is the speed at which an organization addresses known cyberissues and vulnerabilities.

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In remarks made earlier Saturday at the National Council of Legislators from Gaming States (NCLGS) in Pittsburgh, Cherokee Nation Gaming Commission Chairman John Sparks said the Tribe isn’t looking to enter Las Vegas “just yet.” However, Sparks did not say the Tribe is permanently opposed to eventually coming to the US casino center.

Currently, Cherokee Nation runs eight casinos in Oklahoma and is widely viewed as the frontrunner to land a gaming license in Pope County, Ark. Just over two years ago, the Tribe paid MGM Resorts International $450 million for the Gold Strike Hotel & Casino in Tunica, Miss.

Cherokee Nation Would Need Likely Acquisition to Get Las Vegas Casino

Cherokee Nation Entertainment is one of the largest Tribal gaming entities in the US and thus likely has the financial resources to eventually make a move into Las Vegas, which almost certainly need to be accomplished via acquisition.

Additionally, some analysts believe that high interest rates are a headwind to casino mergers and acquisitions activity because many prospective buyers don’t want to finance deals at elevated borrowing costs. It’s possible that the Federal Reserve will lower borrowing costs in September, but it could take more than a single cut to galvanize gaming industry deal-making.

Over the past several years, the bulk of the scuttlebutt regarding Strip casino hotels that could change hands has centered around mid- and lower tier properties. It’s not clear if such venues would be to Cherkoee’s liking or if the Tribe would prefer something glitzier.

Assessing Las Vegas Tribal Landscape

With Mohegan Gaming & Entertainment out as the casino operator at the off-Strip Virgin Hotels Las Vegas and with the closure of the Mirage, the lone Sin City gaming venue run by a Native American tribe is the off-Strip Palms, which is owned and operated by the San Manuel Band of Mission Indians of California.

Assuming no acquisitions or new from the ground up developments, the Las Vegas Tribal roster will increase to two in 2027 when Hard Rock International reopens Mirage bearing the operator’s famous brand.

At the NCLGS conference, Cherokee’s Sparks did not reveal a timeline for the Tribe entering the Las Vegas market.

The post Cherokee Nation Chairman Says Not ‘Just Yet’ on Tribe Buying Las Vegas Casino appeared first on Casino.org.

Vital Vegas broke the news on Thursday and it has not been mentioned elsewhere. In August 2015 while still at the helm of the gaming company bearing his name, Wynn replaced his Gulfstream G650 with a Gulfstream G650ER. The Jet Business lists several Gulfstream G650ER’s for sale and inquiries must be made regarding selling prices. By some estimates, the price of the average used G650 is nearly $42 million. The jets are also expensive to maintain.

Depending on numerous factors, the average price for a pre-owned Gulfstream G650ER is $41,950,000.00. A $20,975,000.00 loan over 120 months including $87,395.83 per month in interest equates to a $1,051,764.41 per-period payment. Based on 450 annual owner-operated hours and $6.00-per-gallon fuel cost, the Gulfstream G650ER has total variable costs of $3,242,700.00, total fixed costs of $1,249,151.00, and an annual budget of $4,491,851.00. This breaks down to $9,981.89 per hour,” according to Aircraft Cost Calculator.

Assuming Wynn is in fact selling his jet, there’s likely to be an enthusiastic audience of potential buyers because only a scant percentage of the total G650 global feet comes up for sale, creating strong demand for used models and that demand supports strong residuals and below-average depreciation.

Wynn Has Been Active Seller of Expensive Assets

In January, Forbes estimated Wynn’s net worth to be $3.4 billion which is to say the former casino boss doesn’t “need” money, but he has recently been active in terms of selling some high-priced assets.

Wynn is 82. Given his age and the fact that he’s no long active in the gaming business, reducing the number of residences and selling the jet could be practical moves. Currently, his primary residence is Palm Beach, Fl.

Selling expensive assets for which there is a limited pool of prospective buyers could also be an estate planning move. Wynn has a wife and two children.

Gulfstream G650 a Pop Culture Icon

Due to its price tag and its credible association with wealth, the Gulfstream G650 is something of a pop culture. The name of the plane was shortened and served as the inspiration for the 2014 hit single “Like a G6” by The Far East Movement.

Indeed, the roster of G650 owners reads like a who’s who of America’s rich and famous. In addition to Wynn, other G650 owners include titans of business and entertainment such as Amazon founder Jeff Bezos, Oracle boss Larry Ellison, Tesla founder Elon Musk, and Kim Kardashian.

Wynn also owns the Aquarius — a superyacht that cost an estimated $200 million.

The post Steve Wynn Rumored to be Selling ‘G6’ Private Jet appeared first on Casino.org.

Trend Genius is designed to deliver advertisements pertinent to real time conversations taking place on X. In a hypothetical example, an active, robust conversation with multiple participants on “sports betting X” could be served ads from gaming companies. Financial terms of the agreement were not disclosed.

The new technology, built by Genius Sports and powered by X’s Ads and Trend APIs, allows advertisers to align with the real-time conversations happening on the X platform across categories. When a specified topic organically reaches a set conversation velocity, pre-programmed creative will run to reach audiences when they’re most engaged,” according to a statement.

As the chatter shifts or wanes, the ads served by Trend Genius would be paused until momentum is regained. In simple terms, Trend Genius harnesses artificial intelligence (AI) capabilities to show ads that are most relevant to specific X conversations and threads.

X Agreement Marks New Frontier for Genius Sports

The accord with X is unique for Genius and could showcase the latter’s versatility while opening new markets beyond the world of sports wagering.

Genius technology could help X advertisers more efficiently target and maximize those expenditures, which could be long-term selling points in the highly competitive internet ad space.

“As the exclusive data distributor for the NFL, NCAA, and the Premier League, Genius Sports relied on its heritage of building data-driven products to engineer real-time algorithms needed to start and stop ad spend across the X platform,” said Josh Linforth of Genius Sports in the statement.

Advertising in Flux at X

Ad revenue is a vital part of the X business model and since Elon Musk acquired the social media giant in October 2022, some advertisers turned petty and reduced spending due to Musk’s alleged political leanings.

“After the billionaire bought the platform, advertisers and marketers have closely observed every change regarding its features and policies. Due to many contradictory developments at Twitter, industry professionals have become increasingly more cautious with their investments,” according to Statista.

While X currently commands a small percentage of overall internet ad revenue, it is one of the most visited sites in the world. That could signal opportunity for the Trend Genius partnership to potentially bear fruit over the long-term.

The post Genius Sports Partnering with Musk’s X on New Advertising Product appeared first on Casino.org.

In a note to clients, Stauff pared his rating on the Harrah’s operator to “negative” from “neutral” while slashing his price target on the shares to $33 from $44. That’s well below Caesars’ closing price of $39.22 today. The analyst believes Caesars is likely to continue lagging rival MGM Resorts International (NYSE: MGM).

MGM and Caesars are the two largest operators on the Las Vegas Strip. Over the past year, shares of the latter slumped 27.46% while the former lost 5.80%. Year-to-date, the Bellagio operator is up 3.29%. While that lags the S&P 500 by a wide margin, it’s still far superior to the 16.34% loss notched by Caesars since the start of 2024.

Caesars has enjoyed the support of some well-known investors this year, but that’s not enough to convince Stauff to be bullish on the casino giant. Assuming “negative” is the equivalent of a “sell” rating, Stauff is the only one of the 18 analysts covering Caesars to rate it in such fashion while 14 of his colleagues rate the stock the equivalents of “buy” or “strong buy.”

‘Growing Disparity’ Between Caesars, Rivals

The Susquehanna analyst observed that second-quarter regional casino data suggest a “growing disparity” between Caesars and rivals. It’s possible that could be a point of discussion on the operator’s earnings conference call on July 30.

Those could be among the reasons Caesars has expressed a willingness to consider divesting what it describes as “non-core, non-operating” casinos that currently deliver little value to its overall portfolio.

Stauff also noted that there’s a growing gap between MGM and Caesars on the Strip. The analyst said the Horseshoe operator hasn’t invested as much in Las Vegas as it probably should have because it’s directed capital to digital gaming and regional casinos, but MGM has made substantial investments in its Sin City portfolio.

Debt Reduction Could Help Caesars

Clearly, Stauff has a pessimistic view on Caesars, but it’s not widely shared and the operator could give investors reason to cheer if it shows material progress on debt reduction or announces asset sales that could assist in that endeavor.

We believe elevated financing costs in the market have caused concerns over Caesars’ high debt levels; we forecast the company’s debt to adjusted EBITDA at 6.1 times in 2024,” noted Morningstar analyst Dan Wasiolek. “This has presented an opportunity to own shares of a company with a management team that has been solid stewards of capital, as cash flow returns from strategic tie-ups were used to quickly pay down debt versus shareholder returns via dividends or share repurchases, which we believe is prudent.”

At the end of the first quarter, Caesars had $12.436 billion in outstanding liabilities compared to $12.439 billion at the end of 2023.

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Analysts are bullish on the stock, and that group includes JPMorgan’s Joseph Greff, who in a recent note to clients, reiterated an “overweight” rating on MGM with a price target of $57. That implies upside of nearly 24% from the July 11 close. In noting the risk/reward setup currently afforded by MGM stock is “favorable,” Greff observed the shares have been hindered for much of this year by “terrible sector investor sentiment shaped, primarily, by macro/consumer concerns.”

Those concerns aren’t yet evident on the Las Vegas Strip where MGM is the largest operator. Business there remains robust, but some of the angst investors have displayed toward the stock this year is attributable to lethargy in some regional gaming markets where cost-conscious consumers have reined in spending amid sticky inflation. In more positive news, there are hints of stability in regional casino markets that could be discussed when MGM reports second-quarter results on July 31.

MGM Stock Not Reflecting Some Interesting Projects

It’s widely known that MGM is working on an integrated resort in Osaka and that the first Japanese casino hotel is expected to open in 2030.

While that’s old news at this point, Greff argued that the Osaka project and the possibility of MGM eventually opening a gaming venue in the United Arab Emirates (UAE) aren’t adequately reflected in the current price of the stock.

The analyst acknowledged that there are no guarantees about what could happen in the UAE, as no formal gaming regulations have been established there, but he added MGM can handle a project there and its commitments in Osaka.

We do not think these projects are currently reflected in its shares, but we suspect that MGM’s funding contributions from free cash flow in Japan may entice investors to ascribe some equity value sometime during 2024,” wrote the analyst.

In what he deemed to be “conservative” estimates, Greff said a “hypothetical” UAE gaming project would be accretive to MGM stock while Osaka could add as much as $18 a share in value.

MGM Balance Sheet Praised

MGM has long had one of the sturdiest balance sheets in the industry, which has allowed the operator to be an avid buyer of its own shares while pursuing acquisitions aimed at bolstering its digital gaming unit.

Greff said the company has $2.4 billion in cash on hand and another $622 million via MGM China. Even when excluding the Macau cash, MGM’s cash on hand is equivalent to 16.6% of its market capitalization.

“A slowing macro and related consumer retrenchment in both the US and China have been discussed ad nauseam, but we think MGM has embedded resilience with its higher-end leisure-customer exposure and a diversified earnings base that attracts significant non-gaming demand,” concluded the analyst.

The post MGM Stock Sporting Attractive Risk/Reward Says Analyst appeared first on Casino.org.

The name and modern exterior design recently were released by ECL Entertainment, a Las Vegas-based gaming company.

The New Hampshire casino will include more than 1,000 historic horse race (HHR) machines and dozens of table games.

It will be placed in a two-story, 180,000-square-foot former Sears store, and is scheduled to open next winter. The store has been vacant since 2020.

The property will be a charitable casino and will direct 35% of its profits to nonprofits. The casino is expected to earn about $24M a year for more than 100 nonprofits, according to New Hampshire TV station WMUR.

Between 500 and 600 employees will be hired at The Nash Casino.

Opposition to Casino

The casino had led to controversy.

I think a casino, while it can help bring in revenue and help nonprofits, it might not be the direction I want to see Nashua heading,” Mags Pattantyus, a Nashua resident, told WMUR.

Residents have also voiced concerns about how police will handle emergencies at the casino. One issue is that the entire parking area is in Tyngsborough, Mass., rather than in New Hampshire.

Others thought the presence of a casino would clash with other mall tenants.

“It seems to me that an adult entertainment center [placed] into one of the five big box stores, the vacant Sears store, is way out of character with the master plan, and I think it’s way out of character with the mall, which [is] a family-friendly shopping center,” Bill Ohm, a local resident, told WMUR.

Future Jobs a Plus

But Jesse Dellea is happy that her Nashua neighbors can get hired at the new gaming property.

If it brings jobs to the area, that’s great,” she told WMUR.

“I think having a casino in the mall is outside-the-box thinking … I believe, in the end, it will be a shot in the arm to the Daniel Webster Highway and the retail, restaurants, and what have you, down there,” added Stefan Hausberger, a local business owner, said.

Last year, the Nashua Planning Board voted by a 4-to-1 margin to okay the project.

Under the plan, licenses from two Nashua casinos, The Lucky Moose Casino & Tavern and The River Casino & Sports Bar, will be transferred to the new casino.

The Simon Property Group owns the Pheasant Lane Mall.

The post New Hampshire’s New Gaming Property to be Called Nash Casino appeared first on Casino.org.

Under the terms of the agreement, the poker room will be named the Bally’s Maverick Poker Room. Financial terms of the accord weren’t disclosed. Washington-based Maverick is led by CEO Eric Persson who is an accomplished poker player.

Our goal is to elevate the gaming experience of our poker room by tapping into the knowledge and experience of Maverick Gaming to attract world-renowned poker players and position the Bally’s Maverick Poker Room as the premier poker destination in the region,” Tony Rohrer, regional vice president and general manager of Bally’s Twin River, said in a statement.

Maverick owns several casinos in Colorado and Nevada as well as nearly two dozen card rooms in its home state. The poker room at Bally’s Twin River will have daily tournaments with buy-ins ranging from $50 to $450 and cash games as well.

Bally’s, Maverick Gaming Have History

Bally’s and Maverick Gaming share history. In 2020, Maverick attempted to acquire the Eldorado casino hotel in Shreveport, La. ahead of that operator’s merger with Caesars Entertainment, but that venue was ultimately sold to Bally’s.

Additionally, Persson frequently appears on “Bally’s Big Bet Poker,” which features high stakes poker games.

“Our long-term plan is to eventually, with proper regulatory approval, hold tournaments seven days a week, with varying buy-ins to accommodate all types of recreational and professional players,” said Persson in the press release. “Additionally, Bally’s Twin River is an ideal setting for our twice-annual circuit event that likely will attract more than 3,000 players.”

Bally’s Bolstering Rhode Island Casino

The poker room partnership with Maverick Gaming is one example of Bally’s ongoing efforts to bolster its Twin River property. The company has spent $60 million sprucing up the venue, including the addition of non-smoking gaming space.

“We recently introduced an Asian food hall, Korean-style spa, gaming addition, and new no-smoking areas. These enhancements underscore our ongoing efforts to innovate and exceed expectations, providing guests with unparalleled comfort and enjoyment,” added Rohrer.

The expenditures at Bally’s Twin River were part of $100 million in spending pledged by the operator to improve its Rhode Island venues. The other is located in Tiverton.

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In a recent note to clients, Truist Securities analyst Barry Jonas cited the familiar headwind of elevated interest rates as one of the primary drags on VICI’s and GLPI’s price action through the first half of 2024. Due to its capital-intensive nature, real estate is one of the sectors most negatively correlated to interest rates, and with the Federal Reserve yet to lower borrowing costs, REITs of all stripes have been pinched.

Year to date, 10-year Treasury yields are higher by 11.17%, weighing on the real estate sector in the process, but those yields slightly declined over the past 90 days. That could be a sign of the rate stability Jonas mentioned as a possible catalyst for the casino REITs.

(VICI is) well positioned for the next wave of large scale, non-gaming, and/or international transactions,” wrote Jonas.

The analyst is also constructive on Gaming and Leisure, which is smaller than its rival and needs “less to move the needle,” he observed.

High Rates Not Slowing Casino REIT Activity

While the highest interest rates in two decades are weighing on shares of casino REITs, the companies aren’t sitting idly by. Rather, both GLPI and VICI are executing transactions that could be accretive to long-term investors.

Jonas said that transaction and other bolt-on buys by GLPI are “indicative of smaller deals that are still getting done despite the lack of rate cuts so far this year” while that REIT and rival VICI are “demonstrating execution ability despite the lingering interest-rate uncertainty.”

For its part, VICI has been lauded by Wall Street for its involvement in financing $1 billion in upgrades at the Venetian and Palazzo on the Las Vegas Strip. As part of the financing accord, VICI will increase Apollo’s lease obligations at Venetian. Under the existing rental agreement, rent will rise “on the first day of the quarter immediately following each capital funding at a 7.25% yield.”

Eye on Potential Penn Sale

Amid frequent, though unconfirmed, scuttlebutt that Penn Entertainment (NASDAQ: PENN) is a takeover target, both casino REITs could be worth monitoring, but such a deal would be impactful for GLPI because the regional casino operator is the landlord’s biggest tenant.

Jonas, who isn’t convinced Boyd Gaming (NYSE: BYD) will make a play for Penn, observed GLPI will have a say in any such transaction should it materialize.

“GLPI’s master lease with PENN has change-of-control provisions that set various conditions for an acquirer and could require GLPI’s approval for any divestitures/lease modifications,” concluded the analyst.

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The machine at the casino hotel and others like them are not owned by the grading company, but the one at the Plaza sported significant PSA branding, causing confusion among customers.

This machine, however, is not owned, operated or controlled by PSA in any capacity. Despite this, this third party’s test run of their machine has unfortunately created some confusion as to PSA’s involvement,” said the company in a recent post on X (formerly Twitter. “We are working with the vendor in real-time to adapt the look and feel of these machines to feature less-prominent PSA branding and/or make it clearer that they own and operate these machines, not PSA.”

The vending machine at the Plaza and others like them are owned and operated by PSA licenses dealers. The machine is said to be located at the back of the casino near the sportsbook.

Casino Appropriate Place for Trading Card Vending Machine

Arguably, a casino is an appropriate for a trading vending machine because customers are essentially making bets.

Trading cards fluctuate in value so it’s possible that buyers using the vending can come out ahead or behind on their initial $50 “investments.” Such price action is also a long-term phenomenon in trading cards meaning buyers can experience appreciation or loss over months and years.

Specific to the machine at the Plaza, there are some reports of minor successes with buyers noting they’ve won Pokemon cards graded PSA 10 valued at $35 to $45. Two weeks ago, a Reddit user posted a video claiming he pulled two Pokemon cards from the Plaza vending machine worth $50 apiece, doubling his initial “pull” of $50.

Who Is Cannon Rock?

Cannon Rock LLC is the operator of the vending machine at Plaza and reports have surfaced that PSA is still working with the company while attempting to correct some of the branding missteps that caused confusion with the device at the downtown Las Vegas gaming venue.

“Cannon Rock Incorporated (CRI) is a worldwide corporation specializing in automated retail solutions for the collectable industry. Our corporate partnerships with Nintendo, Pokemon, and DMVI have helped establish us as the fastest growing company in the automated retail space. With partners in Denmark, Japan, Canada, Germany, & various states throughout the USA, we’re working diligently to innovatively bring our products to customers throughout the world,” according to the firm’s LinkedIn page.

The firm was founded in 2021, according to LinkedIn. Pokemon authorized vending machines are found in seven states, but Nevada isn’t one, noted Pokemon Center.

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