CasinoBeats delves into the fascinating numbers that are behind the stories of some of the most interesting industry players. This week’s roundup of numbers includes a flood of results for the first quarter from Caesars, MGM Resorts, and Bally’s as well as changes to UK regulations.
$4.4bn
MGM Resorts International reported record net revenues for the first three months of 2024 of $4.4 billion, due to the progress made by MGM China in its Las Vegas operation.
This record represents an annual increase of 13% (Q1 2020: $3.9bn) driven by MGM China’s “continued ramping up of operations following the removal of COVID-19-related entry restrictions in Macau during the previous year quarter”.
The casino operations earned $2.2bn in the first quarter of this year, a significant increase over the $1.9bn they made during Q1 2013. The rooms generated $956.4m (in 2023, $848.5m) while food and beverages produced $769.4m ($722.1m), entertainment and retail stood at $4004.4m ($4009.6m in 2023), and reimbursement costs were $12.2m ($10m in 2012).
MGM Resorts reported a net profit of $217m in Q1 2023, a drop from $467m in Q1 2020. This was due to a “change in operating income” which resulted in a gain of $398m on Gold Strike Tunica’s disposition in the previous year quarter. The increase in revenues for the current quarter partially offset the change.
At the end of quarter, the consolidated adjusted EBITDAR was $1.2bn. Diluted earnings per share at that time were $0.67 (in 2023 $1.24), and the adjusted diluted earning per share in 2023 $0.44.
The net cash flows generated by operating, financing, and investing activities were $549m ($108m) and $629m respectively. Free cash flow was $377m.
Bill Hornbuckle CEO and President of MGM Resorts International commented on the following: “Our strategy to grow our business and generate sustainable cash flows from resort operations continued in 2024. We also developed free cash by investing in luxury and digital integrated resorts in other countries.
We achieved record revenues for the first quarter. Our initial expectations were exceeded with the January launch of Marriott’s licence agreement. Over 130,000 rooms nights have been booked. We expect that this strategic partnership will drive growth in 2018.
PS150
UKGC will implement changes in the entire industry. ‘Light touch’ checks on affordability are triggered once a monthly spend of PS150 is reached.
The new measures, which aim to ‘increase safety and choices for consumers,’ are the result of numerous white papers consultations. They will be introduced in four phases: August 2024; November 2024; January 2025 and Febraury 2025.
To smooth out the transition, this check will be initially implemented at PS500 per month starting 30 August 2024. It will then reduce to PS150 each month beginning 28 February 2025.
In response to the feedback received from the consultation, the Commission is launching a pilot project to evaluate the impact of frictionless assessment in the real world. It will work with gambling companies and credit agencies to determine the possible consumer impacts.
In order for the UKGC gain a deeper understanding of the regulations, the initial pilot phase will include the largest operators.
The UKGC says it wants to increase consumer awareness about the game and make online slots ‘fairer’.
Andrew Rhodes, Gambling Commission’s CEO commented that: “As an gambling regulator, it is vital to introduce new rules based on facts and take into consideration the opinions of interested parties and consumers.”
We have taken into account the opinions expressed during our consultations and engagements, while ensuring we provide meaningful protections.
3.3%
Bally’s Corporation reported a 3.3% increase in revenue for the first quarter 2024. Growth was seen across both its Casino & Resorts segment and North America Interactive segment.
Although International Interactive’s revenues declined from year to year, its CEO Robeson reeves stated that the UK had seen gains ahead of launching the online sports betting service in the UK later in this year.
Bally’s announced its first quarter results. The company’s total revenue was $618.5m. This is a 3.3% increase YoY from Q1 2023’s $598.7m. These numbers are driven by the Casino & Resorts segment and North America Interactive.
The gaming revenue reached $516.1m (in 2023, it was $486.9m), while the non-gaming revenues were $102.4m.
Operator reported net losses of 173.9 million dollars for the third quarter, down from a profit of $178.3 million during the same time period last year. The adjusted EBITDAR was $148.1m. Cash and cash equivalents were $169.3m as of March 31 2024.
Casino & Resorts, North America Interactive and International Interactive revenues improved per segment. However, International Interactive revenue decreased despite UK growth.
Reeves commented that “Bally’s has a strong start for 2024. This is due to the revenue growth of our Casinos & Resorts segment and North America Interactive.”
As our strategy plays out, it reflects the initiatives that we took in anticipation of White Paper implementation.
$1.29bn
Nevada Gaming Control Board revealed that gaming revenues in Nevada fell by 1.65% in March compared to last year, to $1.29bn ($1.31bn for March 2023).
Revenue in the Silver State increased by 4,44 percent YoY between July 1, 2023 and March 31, 2024.
Casino operations on the Strip decreased by 1.2% YoY in March, to $715.9m ($724.6m) (2023; $724.6m), while they increased 6.51 percent YoY over the past fiscal year at $6.89bn ($6.47bn).
The NGCB reported that, per vertical, slot machines and sports betting revenues decreased from the previous year, while improvements were noted in the table games, card games, and counter-games segment.
The revenue generated by slot machines during this month was $874.5 million, a drop of 3.53 percent compared to last year. Multi-denomination and penny slots brought in $573.7 and $220.3 millions respectively.
The revenue from table, counter, and card games increased by 2.54 per cent YOY, reaching $415.9m. Blackjack and Baccarat generated revenues of $108,8m and $124.7m, respectively.
The revenue from sports betting fell by 32.13 percent compared to the same time period in last year, to $29.8m.
Taxes collected by the state for this month were $86.5m, which is down 11.22 percent from the same period last year ($97.4m).
1.2%
Caesars Entertainment reported a 1.2% drop in revenue net for the first three months of 2024, with “a lower-than-expected holding” across multiple segments.
Caesars, in their first-quarter results published, announced a net revenue total of $2.7bn. This is down by 1.2 percent compared to last year’s same quarter (Q1 2020: $2.8bn). The decreases were due to its Las Vegas segment and its Regional segments.
In the first quarter of 2019, Caesars reported a loss net for $158m. This is down by 8.2 percent from last year’s $136m. The declines were seen in Las Vegas, Regional, and Caesars Digital.
By the end of the first quarter, the same-store adjusted EBITDA was $853m. This represents a drop of 9.9% compared with Q1 last year ($958m). Caesars Digital has seen its adjusted EBITDA improve to $5m (in 2023, it was a $4m loss).
Caesars’ Las Vegas operations reported a YoY drop of 4.5 percent in revenue, to $1.03bn (in 2023 it was $1.13bn), and a 30% decrease in its net income at $198m ($293m in 2023). It also saw a decline in adjusted EBITDA by 15.7% to $440m ($533m in 2023).
CEO Tom Reeg stated: “Operating Results during the First Quarter in Las Vegas were a combination record occupancy driven by Super Bowl and foreign visitation to celebrate Chinese New Year offset by lower than expected hold.”
Caesars announced a 1.7% decline in revenue YoY to $1.37bn (in 2023, $1.39bn) as well as a 45.3% drop in the net profit to $40m (2023, $75m), and a 3.3% decrease in adjusted EBITDA to $433m.
Reeg stated that “in our regional segment, the results are impacted by weather-related weakness between January and February. This is partially offset with our newly opened properties.”
Caesars Digital’s revenue increased by 18.5% compared with the same period in the prior year, to $282m (2023) (2023: 238m). However, the segment saw a decline of 6.3 % in its net loss at $34m (2023) ($32m loss), while the adjusted EBITDA rose to $5m.
Reeg stated: “Caesars Digital achieved strong revenue growth in spite of lower than expected hold on online sports, due to the unfavorable outcomes for Super Bowl and March Madness.”
