These seven trending gaming industry stories will impact your casino revenue strategy.
1. Wynn’s Encore Boston Harbor Starts Strong
According to the Massachusetts Gaming Commission, Wynn Resorts’ Encore Boston Harbor took in $16.8 million in gambling revenue during its first week in business last month. That means the property generated almost as much revenue in one week as MGM Springfield, the state’s other full-service casino, collected in an entire month.
How the new casino resort will continue to impact the state, as well as neighboring states like Rhode Island is still to be seen. But for Wynn, it’s a win.
2. Wynn Unveils $2 Billion Expansion Plan in Macau
Wynn Resorts also recently unveiled plans for a $2-billion expansion of its properties in Macau, including a theater and museum in the world’s largest gambling market.
The Crystal Pavilion complex, which will be adjacent to the Wynn Palace on the Cotai peninsula, will include two hotel towers, interactive sculptures, gardens and a performance space. Construction will begin in 2021, with an opening set for 2024.
The company expects to get as much as a 20% return on the investment.
Wynn Resorts is also competing for a license in Japan, which recently legalized casino gambling.
3. Hard Times for Macau’s Luxury The 13 Hotel
Not every property in Macau is doing as well as Wynn’s. In fact, The 13 hotel’s luck has nearly run out.
Designed as an ultra-VIP casino resort, the $1.6 billion luxury hotel remains a non-gaming property and the parent company has reportedly warned investors it anticipates recording a larger-than-anticipated loss for the 12 months to the end of March courtesy of an around $601.69 million impairment.
Analysts believe the 201-room all-villa property needs the casino to attract the type of wealthy clientele. However, the operator has yet to agree a deal with one of the city’s “big six” casino license holders.
4. Atlantic City Continues its Hot Streak
Casino revenue in America’s playground increased more than 20% in June, compared to the same period last year, marking the 13th consecutive month of double-digit percentage growth.
However, the hot streak may run cold, as June will be the last full month where revenue reports compare a market with seven casinos and limited sports betting to one with nine casinos and legal sports wagering.
5. Oklahoma Governor, Tribes Clash Over Casino Gaming Revenue
Leaders with Oklahoma's Native American tribes are frustrated with the state's Republican governor, Kevin Stitt, after he suggested in an editorial in Tulsa World that the existing compacts, which call for tribes to pay between 4% and 10% of a casino's net revenue in "exclusivity fees," should be reevaluated now that the gambling industry has matured in Oklahoma.
Tribal leaders say those fees are part of the overall contribution that tribes make to the state and that Stitt is failing to recognize the true value of the tribes.
6. Harrah’s New Orleans Must Pay Hotel Comp Taxes
Harrah’s New Orleans has lost a lawsuit in Louisiana state court arguing it wasn’t legally required to pay taxes on discounted or comped hotel rooms. Judicial Court Judge William Morvant ruled that Harrah’s and parent company Caesars Entertainment should have been paying taxes dating back to 2001 on free or reduced-rate hotel stays.
7. Circus Circus Turned Into UNR Student Housing
After a boiler explosion at The University of Nevada Reno left two of the university’s dorms unlivable, thousands of students will now take up housing in the west tower of the nearby Circus Circus Hotel and Casino.
The tower is completely segregated from the casino, and will be renamed “Wolf Pack Tower” and students will have their own special entrance, keycard required, with round-the-clock security.
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