Seven trending gaming industry stories that will impact your casino Revenue Strategy.
1. Casino Shares Drop to Worst in 2018, But Why
After a prosperous 2017, where casino stocks hit record highs, the gaming industry is now one of the worst-performing sectors for 2018.
As the blame gets passed around between last fall’s Strip shooting, lackluster summer business, ongoing trade war tensions between the US and China, and rising interest rates, the casino carnage continues to climb.
- MGM Resorts has gone from $37 in January to below $26, a 30 percent loss
- Las Vegas Sands has gone from $81 in June to $55, a 32 percent loss
- Wynn Resorts has gone from $200 in May to $116, a 42 percent loss
- Caesars Entertainment has gone from $14 in January to $9, a 35 percent loss
Stock market analysts are trying to determine if the dip is simply a Wall Street correction, or an indicator that more trouble is ahead. Time will tell.
2. Penn Purchases Pinnacle for $2.8B
Penn National Gaming Inc. solidified its position as the second-largest gaming company by properties in the U.S. when it completed the $2.8 billion acquisition of Pinnacle Entertainment Inc. earlier this week.
At the same time, Boyd Gaming finalized the purchase of four Pinnacle properties in order to pave the way for Penn National, which will now oversee 40 properties across 18 states, it said in a press release. The company will operate nearly 9,000 hotel rooms and more than 49,000 gaming machines.
3. Vegas Union Reaches Tentative Deal with TI
Unionized workers in Las Vegas have reached a tentative labor agreement with Treasure Island, the last Strip resort without a union agreement.
A spokeswoman for Culinary Local 226 said a five-year contract covering 1,500 employees was reached with management. Terms of the agreement were not disclosed, though the Associated Press reports the contract includes wage increases and protections against sexual harassment. A ratification vote has yet to be scheduled.
4. Casinos Can Boost Gaming with Better Data
In order to up the ante with data and analytics, casinos first need to address some fundamental challenges including better collaboration between departments when deciding which tech investments to make and which capabilities to prioritize.
The gaming industry is uniquely positioned, though. While the field of tech vendors is small, it’s hyper-focused on the specific needs of casinos, which means there’s a tremendous amount of opportunity.
5. What’s Keeping High Rollers From Macau
China’s crackdown on corruption mixed with investors’ fears over the impact of the trade war have sent the stock prices of Macau’s top six casinos tumbling an average of 40% since June, reports South China Morning Post.
According to Bloomberg, gross gaming revenue in Macau rose 2.8% in September from a year earlier, the weakest showing since August 2016. The result fell far short forecasts, which had already been cut in half after Typhoon Mangkhut ripped through Macau in mid-September.
6. Is Atlantic City’s Growth Good Enough? Depends on who you ask.
Overall revenue for Atlantic City Casinos was up a staggering 21.7%, from $235.6 million in September 2017 to $286.8 million last month.
But with two new casinos, sports betting access, and an expanded online gambling market that growth only amounted to $51.2 million which makes the glass is either half-full or half-empty—depending on who is offering the perspective.
7. Caesars’ Loyalty Program Awarded Best Players Club
Caesars’ Total Rewards loyalty program was named the "Best Players Club" by USA TODAY's 2018 10 Best Readers' Choice Awards.
"Total Rewards continues to set the standard for loyalty within gaming and entertainment," said Mark Frissora, President and CEO of Caesars Entertainment. "Not only does it act as a tourism driver for the cities and destinations where Caesars Entertainment operates, it allows our members to have access to an unparalleled portfolio of world-class entertainment, celebrity chef restaurants, luxury hotel offerings and best-in-class gaming experiences, which create unforgettable memories."