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Nevada gaming revenue numbers for June released, blamed on VMB members.

Discussion in 'Casino Industry & Development' started by Funkhouser, Jul 29, 2015.

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  1. Funkhouser

    Funkhouser In Charge of the Big Door

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    Wouldn't that be great if the title were true?!

    Vegas Inc published June gaming revenue numbers. Gaming as a whole was down 8% from same period in June 2014, and 1.6% YOY.
    Strip saw a decline in revenue, mostly as a result of Baccarat play. Speculation was that the China crackdown on organized crime was bleeding
    into the Las Vegas gaming market.

    The most useful quote I found in the Vegas Inc. article was this:

    "The rest of Clark County performed far better than the Strip in comparison to last year. In downtown Las Vegas, gaming revenue rose 2.25 percent from 2014 to $42.1 million. Additionally, Laughlin, the Boulder Strip and Mesquite reported increases of 5.48 percent, 6.28 percent and 3.89 percent, respectively.

    You can read all the juicy details here: http://vegasinc.com/business/gaming/2015/jul/28/nevada-gaming-revenue-down-more-8-percent-june/?utm_source=mostpopular&utm_medium=banner&utm_campaign=mostRead&_ga=1.51266347.308228974.1438090061
     
  2. smartone

    smartone VIP Whale

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    Ha! When I saw the news yesterday, I thought about asking VMBers to step up their game, but when I saw downtown activity had risen slightly I thought, damn... they are doing their part!!! And for that... we Thank You! (in my best Tosh.0 voice)
     
  3. Malibugolfer

    Malibugolfer High-Roller

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    Represents the bacc numbers.
     
  4. vegasvic

    vegasvic VIP Whale

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    Time for 5:5 blackjack
     
  5. Funkhouser

    Funkhouser In Charge of the Big Door

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    :nworthy: LMAO!! But seriously I wouldn't doubt they would try that if they thought they could get away with it.
     
  6. zing

    zing Low-Roller

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    I've actually wondered why they haven't gone to even money blackjack. If people are willing to play 6:5 I don't see why they wouldn't be willing to play even money. Sad but true.
     
  7. Packer

    Packer VIP Whale

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  8. pphold

    pphold pp Park Place Degenerate

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  9. pphold

    pphold pp Park Place Degenerate

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    delete
     
  10. lithium78

    lithium78 High-Roller

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    I am hoping that the slowdown on the Strip will lead to a return to the incentives we saw after the 2008 financial crisis: Bigger and better My Vegas rewards, more and bigger comps, etc. It would be extremely short-sighted for Vegas to cut even further and drive more customers away.
     
  11. Chuck2009x

    Chuck2009x VIP Whale

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    Gambling-wise, he's a prisoner of baccarat. The loss of the VIP junkets in Macau is killing him, and they're not coming to Vegas. So he's trying to stanch that bleeding somewhat. If the Chinese gov't relaxes on the junkets, his stock will be up 20% the next day.
     
  12. Funkhouser

    Funkhouser In Charge of the Big Door

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    With the stock trading in the low 100's and the historical low at 93. I am thinking it might be time to go long on the Wynn stock. I can't imagine it will stay in the basement much beyond a year, and with a target price of 145, it might be a great way to make a few bucks. The Steve will figure out a way to improve cash flow, especially with Vegas growing. The timing of Cotai is just crappy, much like the Encore opening.
     
  13. Chuck2009x

    Chuck2009x VIP Whale

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    I've thought about it, but the landscape is much different now than it was last time the stock was this low.

    That was in the summer of 2012. WYNN had reported 1Q earns at the end of April or beginning of May and had swooned under $100. I read the conf call transcript and Steve attributed it to a poor baccarat hold (18% vs a historical average of 25%+).

    I was in Vegas in July that year and I have a habit of donking off a few trades while I'm there. So I read that transcript and said that's a one-off and the stock was overly punished, so I bought some. It was about a week before 2Q earnings. When 2Q earns came out, they weren't stellar, but the stock only dropped a couple of bucks, so I knew I was good. Then it went on a run into the 200s over the next 18 months.

    But that was when he was killing it in Macau. And with the divs and year end special div, the return on that alone was almost $10/share.

    Then they took away the junkets, and he's had to cut the div (properly so, IMHO).

    So I don't think WYNN at $100 today with less than half the div, no junkets, and the mishegas with the Shanghai stock market compares favorably with WYNN at $100 in 2012 after one bad quarter due to variance, and Macau on fire.

    The Chinese gov't is capricious and can turn on a dime with it's policies. If they bring back the junkets, WYNN will probably zoom, but you'll have a chance to get in, although at a higher price.

    But if they don't, WYNN could see more pain. And I think if Steve thought they were going to bring back the junkets anytime soon, he probably wouldn't be making the moves he's making in Vegas. And I think those moves barely move the needle anyway, compared to what he was raking in before.
     
  14. waverunner

    waverunner BBHMM

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    This is not surprising. Gaming people will continue to move further away from the Strip, but the Strip has much more in entertainment, that's why the LinQ was built and the Arena/Park at NY, etc, etc. The all around value from tourists and long time Vegas goers who are not hard core gamblers will continue to inhabit the Strip. Something for everyone.
    The Strip will never see gambling odds close to Downtown and Off Strip. They realize that Clubs, Shows, Pools with DJ's, Shopping, water shows, volcanoes, restaurants, themes, etc is where the money is now and more than make up for it.
    So i think that for every person that no longer takes in the Strip, three or four will spend most, if not all their money on the Strip. Many of these people don't care that the odds on the Strip don't favor gamblers, it's just temporary, until they see a show, eat at a fine restaurant, shop, take a dip in the pool, whatever........Vegas hasn't really changed that much, but the Strip has.
     
  15. Aces and Eights

    Aces and Eights VIP Whale

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    We've seen the strip go from family-friendly to an adult playground for non-gamblers (clubs and shows). Maybe it's time to go back to catering to the gamblers.
     
  16. vegasvic

    vegasvic VIP Whale

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    I've been kind of expecting Wynn to jump back into Vegas with a new project but maybe he's all done there.
     
  17. Funkhouser

    Funkhouser In Charge of the Big Door

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    I think with the Cotai project coming online and gaming revenues in decline, the board is going to say no to any new projects. The Steve can keep busy tweaking Encore and Wynn.
    He also has the Everett MA project to deal with, not to mention he is showing his age. So I think The Steve is content to hang and bang with his new wife, with the occasional trips to
    China coast to check on things in that new corporate jet. No need to bring another Vegas project online with all the unfinished stuff there is right now.
     
  18. motownbob

    motownbob Low-Roller

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    Don't expect any improvements in incentives , Gambling revenues only account for about 33 % of all revenue . like one poster stated , gambling on the strip is more of a fill in , unlike years ago , where it was the main attraction , and shows , dinner , etc were the fill ins . Bob
     
  19. deanandmaria

    deanandmaria Tourist

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    Why cater to a business built on odds like gambling when they are able to make money on stuff that is 100% pure no-risk profit with much lower overhead. Dealers, pit bosses, security, cashiers . . . or a minimum wage waitress selling bottle service at 1000% mark-ups. Easy decision, sadly. I just got back from Vegas 12 hours ago . . . I miss the old days and it's only getting worse.
     
  20. vegasvic

    vegasvic VIP Whale

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    I guess the de-emphasis on gambling is to be expected as gambling options around the country have increased. I have options around where I live to play craps and blackjack. I don't have the same club/show options. So I do see that strategy to a point. That said I still love gambling in Vegas. I'm not in the target demo for clubs but I do enjoy shows, we usually go to 3-4 each trip. The shopping though I can do without. I think you'll see a shake out in that regard, I can't see there being enough profitability to sustain all of the stores. Bally's Grand Bazaar is a dead zone. All of the high end shops I walk by never seem to have anyone in them. I guess with the profit margin at those places you don't need a whole lot of sales.
     
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