Mk Ssports-Caesars Entertainment Under Analyst Scrutiny as Ratings Diverge

Prominent institutional investors have also modified their holdings in Caesars

The Caesars Las Vegas Casino Resort Image Source: Shutterstock.com

Caesars Entertainment has become a focal point for stock analysts as differing opinions on the company’s future trajectory emerge.

JMP Securities Bullish on Caesars with a $65.00 Price Target

JMP Securities initiated coverage on January 9, offering an “outperform” rating and setting a $65.00 price target on the stock, reported financial news media outlet Marketbeat. This upbeat assessment suggests a potential upside of 40.54% from the current price. In contrast, JPMorgan Chase & Co. lowered their price target to $54.00, implying a more conservative 19.87% upside.

Analysts closely watched the company’s quarterly earnings data released on October 31, 2023, where Caesars beat consensus estimates with $0.34 earnings per share, higher than the expected $0.27. The company reported revenue of $2.99 billion, exceeding analysts’ expectations of $2.94 billion.

Noteworthy insider activity has occurred, with Director Michael E. Pegram purchasing 15,000 shares at an average price of $41.90, totalling $628,500. This move reflects confidence in the company, as Pegram now holds 136,697 shares valued at approximately $5,727,604.30.

Large institutional investors have also made adjustments to their positions in Caesars. Soros Capital Management increased its stake by 0.4%, while Czech National Bank and Creative Planning raised their positions by 0.8% and 2.6%, respectively. These moves indicate a mix of confidence and caution among institutional players.

Caesars Faces Price Target Cuts from JPMorgan and Morgan Stanley

JPMorgan Chase & Co. was not the only one to lower its price target for Caesars. Morgan Stanley also reduced it from $48 to $45, indicating a modest downside.

Of the 16 analysts covering Caesars, 12 rated it as a “strong buy” or “buy,” while four rated it as “hold.” The consensus price target of $61.94 implied a potential upside of 36.55%, but some analysts highlighted the possibility of downward revisions.

At the same time back in December, Barclays analyst Brandt Montour favored Penn National Gaming (PENN) and Caesars Entertainment as top gaming picks for 2024, citing Penn’s success with ESPN Bet and Caesars’ underappreciated deleveraging and robust free cash flow.

However, analysts have also made other projections. According to analyst Shaun Kelley from Bank of America, Caesars Entertainment may divest two of its Indiana properties, Horseshoe Indianapolis and Harrah’s Hoosier Park, to reduce financial liabilities.The potential sale, estimated to raise nearly $2 billion in net proceeds, could involve VICI Properties as the buyer, with the analyst suggesting this move would align with Caesars’ focus on reducing leverage and achieving targeted financial ratios.

-Mk Ssports

Mk Ssports-Hard Rock Atlantic City Transitions to Unity Loyal Program

Existing Wild Card members needn’t worry as they will be automatically onboarded to the new program

Hard Rock's Unity loyalty program Image Source: Hard Rock

Hard Rock Atlantic City is set to introduce its Unity loyal program today, allowing regular customers to benefit from a variety of promotions. The new program will replace the existing Wild Card program.

Unity is a loyalty scheme that is available across Hard Rock’s properties in North America. The unified scheme allows customers to enjoy the same benefits no matter which Unity-enabled venue in the region they visit.

While rates will vary depending on which Hard Rock property customers visit, they will be able to earn tier credits, comps and free play in all of the company’s properties. Hard Rock AC guests will now be able to download the mobile application and see what the fuss is all about.

Existing Wild Card members needn’t worry as they will be automatically onboarded to the new program. This seamless process will allow them to keep their existing tier points, balances and offers. While Wild Card members can change their card, they won’t be required to.

The transition from Wild Card to Unity was a gradual process in Atlantic City. The property onboarded some of its high-tier members last year and is now rolling out the program for all customers.

Players Can Earn Points in a Variety of Ways

The Unity program boasts four tiers, as follows:

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The four tiers mirror the four Wild Card tiers (Premier, Elite, Royalty and X) and allow for an easy transition of existing consumers.

Hard Rock’s Unity program is available across 13 Hard Rock venues in North America, as well as at the Hard Rock Casino Punta Cana in the Dominican Republic.

The launch of Unity in Atlantic City comes in the wake of Hard Rock’s acquisition of WGames, which enabled the launch of Hard Rock Games. The latter is a social gaming platform that features a variety of free-to-play casino games. For reference, Hard Rock Games will also be integrated with the Unity program, allowing players to earn points they can later redeem at one of the company’s properties.

While players can play the Hard Rock Games at no cost, they can also enjoy a variety of paid offerings that allow them to earn points.

In other news, Hard Rock recently secured approval for its Kenosha property. A few days earlier, the company held a groundbreaking ceremony for its Hard Rock Hotel & Casino Tejon.

-Mk Ssports

Mk Ssports-Baccarat Dealer Accused of Rigging Games at Mohegan Sun

On April 21, 2023, tribal police uncovered the dealer\’s purported misconduct following a pit manager\’s observation of suspicious card handling

Baccarat's game table. Image Source: Shutterstock.com

A baccarat dealer at Mohegan Sun, Yu Wen Fu, 64, faces charges of manipulating games, resulting in a $124,000 loss for the casino.

Dealer Accused of Prearranging Cards, Resulting in Massive Casino Losses

Tribal police discovered Fu’s alleged malpractice on April 21, 2023, after a pit manager observed him handling cards suspiciously. Surveillance cameras captured Fu setting up the deck before a specific player, Haoen Jiang, approached, reported Connecticut media outlet The Day.

Rather than adhering to the standard procedure of washing cards on the table, Fu arranged them in a specific order, allowing him to deal with prearranged cards when Jiang played. Police investigation revealed a pattern of collusion between Fu and Jiang, with the casino’s losses totaling $124,260 between March 29 and April 20, 2023.

In the game of baccarat, where players bet on the outcome of the dealer or player’s hand reaching closest to nine, Fu allegedly signaled the appearance of the nine by strategically placing face cards in the deck. Surveillance footage tracked the chips paid out on each hand, determining the extent of the winnings.

Upon questioning, Jiang denied collaboration with Fu but had Fu’s cell phone number on his device. Jiang claimed their last conversation was about concert tickets and was subsequently ejected from the casino, facing no charges.

Baccarat Dealer Maintains Innocence Amidst Larceny Charges

Fu, suspended pending investigation, maintained his innocence, asserting that cards accidentally turned face up during the wash, and he merely fixed them without rearranging them for personal gain.

Arrested on November 15, Fu faces charges of first-degree larceny, second-degree larceny (four counts), and third-degree larceny. Released on a $25,000 bond, Fu was arraigned in New London’s Part A court on January 8 for serious crimes.

In other news, a fortunate visitor at Mohegan Sun, identified as Jose S. from Stafford, Connecticut, recently struck gold with a remarkable $525,094 jackpot while playing Super 4 Progressive Blackjack.

The casino, known for its extensive gaming options, houses the exclusive game in its Casino of the Earth, offering an array of table games, slot machines, and additional entertainment amenities across its spacious 180,000-square-foot facility along the Thames River in Southeastern Connecticut.

Mohegan Sun, with over 1,600 luxury hotel rooms and various entertainment venues, continues to attract visitors seeking both gaming excitement and diverse leisure experiences.

Mohegan Sun’s advantageous location makes it an ideal destination for visitors from neighboring states. The entertainment and casino resort is conveniently situated near various attractions, including antique shops and museums, providing guests with diverse and interesting options to explore.

-Mk Ssports

Mk Ssports-Altercation Over Slot Machine Leads to Senior's Arrest in Vegas Casino

The senior was apprehended and now confronts allegations related to assault and possessing a concealed weapon without the required permit

Las Vegas, Nevada, casino landmarks. Image Source: Shutterstock.com

In a bizarre incident at the Orleans Hotel and Casino, a 70-year-old man named Mitchell Graham was apprehended after an altercation over a casino slot machine allegedly resulted in a stabbing with a steak knife.

Graham Faces Legal Consequences After New Year’s Eve Incident

The incident took place on the morning of New Year’s Eve, with Las Vegas Metropolitan Police responding to a service call about a battery with a deadly weapon at the Orleans casino on Tropicana Avenue. Graham was taken into custody and is now facing charges of battery and carrying a concealed weapon without a permit, reported Fox 5 Vegas.

According to court documents, Graham, who had been gambling at the casino, went to use the restroom after inserting money into a slot machine. Upon his return, he found another individual occupying the seat he had been using.

Graham confronted the person, insisting he vacate the seat. The dispute escalated when the other man allegedly grabbed the cash voucher from the slot machine and attempted to walk away.

In response, Graham, claiming the money was rightfully his, displayed a 3-4 inch steak knife. The situation intensified, leading to the victim sustaining a superficial cut on his right rib cage.

Witnesses reported Graham making a stabbing motion, while a female onlooker mentioned Graham’s threat to punch the victim if he did not leave the machine.

Graham was promptly arrested and booked into the Clark County Detention Center, facing charges of battery with a deadly weapon. He is scheduled for a preliminary court hearing on January 17.

Graham’s Defense Clashes with Victim’s Account in Casino Stabbing

Investigations revealed differing accounts of the incident. Graham contended that the other man turned into him, resulting in the stabbing, while the victim maintained he was playing a different slot machine, having added $20 to the 50 cents already present.

The victim, who suffered a superficial cut on his rib cage, expressed his upset, stating that he was stabbed for no apparent reason. The surveillance footage was reviewed by police, indicating Graham’s actions during the altercation.

The Orleans Hotel and Casino, known for its vibrant atmosphere, now faces an unexpected episode in its history as legal proceedings unfold in the wake of this unusual confrontation over a casino slot machine.

The Orleans Hotel and Casino, located off the Las Vegas Strip, is a vibrant resort owned by Boyd Gaming Corporation. Boasting a Mardi Gras theme, the facility offers a diverse range of amenities, including a casino, hotel accommodations, entertainment venues, dining options, and recreational features like a bowling alley and spa services.

-Mk Ssports

Mk Ssports-Norfolk Casino Developer Postpones Blueprint Presentation

Initially scheduled for discussion on Monday, the decision to defer was confirmed by casino spokesperson Jay Smith, who emphasized ongoing talks with City Council members and city staff regarding various project-related matters

Norfolk, Virginia. Image Source: Shutterstock.com

In a recent twist for the much-anticipated HeadWaters Resort & Casino project in Norfolk, the Pamunkey Indian Tribe, along with their casino development team, has opted to delay the presentation of their latest plans until January 22.

Norfolk Mayor Unaware of Latest Casino Proposal Issues

Casino spokesperson Jay Smith stated in an emailed communication that the tribe and the developer had engaged in discussions to address concerns and issues pertaining to the project and site before proceeding with the Architectural Review Board presentation, reported by Virginia local media outlet The Daily Press. However, when pressed for specifics on the nature of these issues, Smith refrained from providing further details.

Norfolk Mayor Kenny Alexander expressed his lack of awareness regarding any problems with the latest proposal and redirected inquiries to the developer. The proposed HeadWaters Resort & Casino, situated between the baseball stadium and the Amtrak station near downtown Norfolk, has undergone multiple modifications since gaining approval for construction in 2020.

Initially, the project faced setbacks when plans for a temporary casino within Harbor Park were discarded in 2022 due to non-compliance with the 2020 voter referendum specifications. Subsequently, the developer introduced a two-phase plan for a casino and resort in mid-2023, but it encountered opposition from city leaders and was eventually withdrawn.

HeadWaters Resort & Casino Tackles Construction Challenges in Norfolk

December 2023 witnessed the unveiling of the latest blueprint, featuring a 2025 commencement for gaming activities, while other resort components, such as the hotel and spa, undergo construction. Notably, the once-proposed Elizabeth River marina has been excluded from the updated plans.

The Pamunkey Indian Tribe, as the preferred gaming developer, obtained approval from local voters in 2020 for the $500 million project on the Elizabeth River waterfront, adjacent to Harbor Park Minor League Baseball stadium. Despite this, construction has yet to commence more than three years later.

The Architectural Review Board’s approval is crucial for the project’s advancement, as it is tasked with evaluating new construction projects involving city-owned land. The HeadWaters development, spanning approximately 13.5 acres, is set to be purchased from the city for $10 million, with financing provided by gaming industry veteran Jon Yarbrough.

The project has faced numerous hurdles, including a legal snag over the temporary casino, disagreements over a phased development approach, and design delays linked to a city-funded seawall project along the Elizabeth River. According to the casino development agreement, HeadWaters must be operational by November 2025, a deadline that carries financial implications for both the city and the tribe.

-Mk Ssports

Mk Ssports-Arkansas Supreme Court Denies Rehearing in Legends Resort and Casino Case

The court’s decision marks a significant development in a legal battle over the casino license that has been ongoing for several years

Arkansas State borders. Image Source: Shutterstock.com

The Arkansas Supreme Court has rejected a petition from Legends Resort and Casino and Cherokee Nation Businesses, seeking a rehearing in a case where the court ruled that the Arkansas Racing Commission’s award of the Pope County casino license to the consortium violated Amendment 100 to the Arkansas Constitution. This decision leaves the Commission free to determine how to resolve the matter.

The Court Decision Marks Significant Progress

The legal battle began in November 2021 when the Arkansas Racing Commission issued the Pope County casino license to the Legends/Cherokee consortium, nullifying the license previously awarded to Gulfside Casino Partnership in 2020. Gulfside challenged this decision, leading to several years of court cases and disputes that may significantly affect the state’s gambling sector.

Amendment 100 to the Arkansas Constitution, approved by voters in November 2018, empowered the Arkansas Racing Commission to license four full-fledged casinos. However, in a 5-2 ruling on October 26, 2023, the state’s Supreme Court affirmed a decision by Pulaski County Circuit Judge Tim Fox, stating that the Arkansas Racing Commission erred in the licensing process.The Commission had awarded the license to two entities, Legends Resort and Casino and Cherokee Nation Businesses. The court ruled that only a single entity could hold a casino license. Legends failed to meet the licensing requirements stipulated in the Arkansas Constitution due to a lack of prior casino gaming experience, disqualifying the venue from offering gambling services.

Legends Resort and Casino’s Future Remains Uncertain

The court’s decision not to grant a rehearing further complicates the situation. The next step involves the Arkansas Racing Commission meeting to receive input from the attorney general’s office and the state Department of Finance and Administration to determine the best course of action that will cause minimal disruptions.

The Pope County casino license has been a source of contention, with billions of dollars collectively wagered at the state’s casinos annually. Trent Minner, administrator of the state Department of Finance and Administration’s Regulatory Division, which includes the Racing Commission, stated that the Commission would assess the situation in upcoming meetings.

The high court’s decision effectively ended any form of litigation or questions remaining regarding the casino issue over the past five years.

Pope County Judge Ben Cross

The denial of the petition for rehearing by the Arkansas Supreme Court clears the way for the Arkansas Racing Commission to act. These ongoing legal proceedings and the involvement of different entities have underscored the challenges of implementing casino licensing in the state. The decision may prompt discussions on potential next steps and the impact on the casino licensing process in Pope County.

-Mk Ssports

Mk Ssports-S&P Warns of Financial Risks for Bidders in New York Casino Permit Race

Rumors suggest that winning bidders could be slapped with licensing fees as high as $1 billion each

The Statue of Liberty in New York. Image Source: Shutterstock.com

As the race for New York City casino permits intensifies, potential operators find themselves facing a high-stakes gamble not only for the coveted licenses but also in terms of financial risk. A recent report from financial analysts at S&P Global Ratings suggests that successful bidders may find themselves shouldering substantial debt burdens.

Major Players Vie for Lucrative Downstate Casino Licenses in the Battle for the Big Apple

The New York state government is set to award three downstate casino licenses, opening the doors to what is considered one of the last untapped gaming frontiers in the United States. The competition is fierce, with major players like MGM Resorts International, Las Vegas Sands, and Wynn Resorts vying for the lucrative opportunity.

S&P Global Ratings, in a comprehensive new report, outlined the potential financial implications for the winning operators. The proposed projects range from $2 billion for expansions or redevelopments of existing properties to over $5 billion for entirely new developments. The report indicates that the impact of the associated leverage could materialize within the next 12-18 months.

One of the key concerns raised by the analysts is the strain on corporate credit metrics as companies seek to secure a foothold in the highly competitive New York market. MGM Resorts International‘s Empire City Casino in Yonkers and Resorts World New York in Queens are rumored to be strong contenders, although nothing is confirmed at this stage.

Rumors Swirl, Anticipating Record-Breaking $1 Billion License Fees

New York is not holding back in capitalizing on its sought-after status, with recent rumors suggesting that winning bidders could be slapped with licensing fees as high as $1 billion each. This figure far exceeds the initially anticipated cost of $500 million per permit. When factoring in construction costs, operators like Las Vegas Sands and Hard Rock International may be looking at a staggering total investment of up to $6 billion and $8 billion, respectively.

Despite the potential financial challenges, experts believe that New York could offer a short-term pain, long-term gain scenario for victorious operators. The prospect of dominating the New York market is seen as a strategic move that could pay off handsomely in the long run. However, the timeline for these developments is extended, with S&P suggesting that licenses may not be awarded before the second half of 2024. Significant capital spending is not expected until 2025, given the complexities of building in New York and the ambitious scale of the proposed projects.

-Mk Ssports

Mk Ssports-Culinary Union and Waldorf Astoria Avoid Strike with Five

The announcement came on the evening of Friday 12, signaling a positive turn in the ongoing efforts of the union to secure fair wages and improved working conditions for its members

Waldorf Astoria Image Source: Shutterstock.com

The Culinary Union has successfully negotiated a new five-year contract with the renowned Waldorf Astoria Las Vegas.

Culinary Union Moves Forward with Contract Vote

Although specific details of the agreement were not disclosed, sources suggest that nearly 300 hospitality workers at the Waldorf Astoria, located in the Las Vegas City Center, will benefit from the newly forged contract. The Culinary Union has been actively engaging with major resort and casino operators in the valley, with this deal marking another milestone in their recent successes.

A spokesperson for the Culinary Union revealed that the next step involves scheduling a contract ratification vote. While the union has successfully reached agreements with most major resort and casino operators in the area, it still faces challenges with 20 independent operators, nine situated on the Strip and 11 downtown.

Last week, the union members employed by independent operators on the Strip and downtown Las Vegas casinos issued a strike threat, scheduled for 5 am on February 2, if tentative agreements were not reached with their employers before then.

Ted Pappageorge, the Culinary Union’s secretary-treasurer, emphasized the importance of securing equitable agreements for the 7,700 workers employed at these properties, including notable establishments like Trump Hotel Las Vegas, Circus Circus, Sahara Las Vegas, and Golden Nugget.

This looming deadline strategically precedes the Super Bowl scheduled to be held at Allegiant Stadium on February 11, adding an element of urgency to the negotiations.

From Resorts World to Waldorf Astoria, Union Secures Victorious Agreements

The recent victory with Waldorf Astoria showcases the Culinary Union’s determination to champion the cause of fair wages and improved working conditions for all hospitality workers in the city.

As negotiations continue with remaining independent properties, the union’s focus remains on securing favorable terms for its members. The union has already met with several properties this week, but details on the progress are limited.

Scheduled meetings with Westgate and Trump Hotel Las Vegas in the upcoming days indicate that the union is actively pursuing its agenda for equitable contracts across various establishments.

Last year, unionized workers in the hospitality and gaming industry in Las Vegas dedicated seven months to successfully negotiate and secure new five-year gaming contracts with three prominent casino and entertainment companies.

The diligent efforts of the Culinary and Bartenders Unions led to the successful ratification of agreements with Wynn Resorts, MGM Resorts International, and Caesars Entertainment.

-Mk Ssports

Mk Ssports-Two Eastern Shawnee Tribe Casinos Experience Data Security Incidents

Indigo Sky emphasized that no customer banking data or other financial information has been acquired by the violators

Computer warningComputer warning Image Source: Shutterstock.com

Two of the Eastern Shawnee Tribe of Oklahoma’s properties, namely the Indigo Sky Casino and Resort and Outpost Casino, have experienced data security incidents in December. In relation to that, the two gambling venues are now notifying customers whose personal data might have been compromised.

The issue was first discovered by Indigo Sky, which discovered unusual activity on its network and immediately launched an investigation into the matter. After it understood that data may have been compromised, the property initiated steps to protect its systems.

In addition to that, Indigo Sky contacted law enforcement and employed the services of a forensic security company. As a result, the company understood that a third party had indeed breached its systems and had accessed some documents.

The Shawnee property explained that the documents in question might have contained sensitive data, such as employees’ personal information, as well as the personal data of some of the casino’s customers. Indigo Sky specified that the compromised data may have included the names, social security numbers and driver’s license numbers of the affected individuals.

However, Indigo Sky emphasized that no customer banking data or other financial information has been acquired by the third party.

Indigo Sky Advised Affected Individuals to Protect Their Identities

Yesterday, Indigo Sky contacted individuals whose data might have been compromised via mail, offering them complimentary credit monitoring and identity theft protection services to make up for the incident. Indigo Sky customers and affected workers should refer to the emails for further information or contact Indigo Sky via phone.

Indigo Sky elaborated on the matter, saying that its patrons should “remain vigilant” and be wary of potential fraud and/or identity theft. For starters, the property suggested that its customers should review their account statements and monitor credit reports closely.

If customers detect any suspicious activity, they should contact the financial institution or company with which the account is maintained, Indigo Sky suggested. The property also urged clients to refer to law enforcement authorities.

Those who wish to know more about protecting their accounts and identities can also read the Federal Trade Commission’s tips on fraud and identity theft.

-Mk Ssports

Mk Ssports-Connecticut Casinos Witness Decline in Fiscal 2023 Revenues

During the inaugural year of legalized iGaming operations in Connecticut, both traditional casinos recorded a decrease in player engagement

Connecticut on the map of the USA Image Source: Shutterstock.com

Two prominent casinos in Connecticut, Foxwoods Resort Casino and Mohegan Sun, reported a dip in net revenues for the fiscal year ending September 30, 2023.

Foxwoods Resort Casino Navigates Challenges in the Era of Online Gaming

Beyond the immediate revenue statistics, both Foxwoods and Mohegan Sun have been navigating the online gaming landscape in Connecticut. In their first full year of legal iGaming operations in the state, both brick-and-mortar casinos reported declines in play.

Foxwoods Resort Casino, owned by the Mashantucket Pequot tribe, disclosed a net revenue of $636.8 million. Although a modest decrease of 0.5% from the previous year’s $640.2 million, the casino’s annual report revealed a 1.2% decline in gaming revenues. However, non-gaming revenues experienced a 2.4% increase, attributed to a rise in food and beverage sales.

Gaming accounted for 74.5% of Foxwoods’ gross revenue in fiscal 2023, down from 75.5% in the previous year. The casino’s payroll costs rose by $5.6 million, reflecting the addition of around 100 full-time equivalent employees. Foxwoods, which employed approximately 3,248 full- and part-time staff as of September 30, 2023, reported a substantial amount of indebtedness totaling $2.15 billion by the end of the fiscal year.

Mohegan Sun Adapts to Fiscal Challenges and Revenue Declines

On the other side, Mohegan Sun, in its annual report, disclosed a net revenue of $920.2 million, marking a 2.1% decrease from the previous year’s $940.3 million. The decrease was primarily attributed to declining gaming revenue from slot machines and table games. However, this decline was partially offset by higher revenues from food and beverage as well as entertainment.

Mohegan, which owns and manages several properties across the United States, Canada, and South Korea, reported a company-wide revenue of $1.67 billion in fiscal 2023, reflecting a 5.1% increase over the previous year’s $1.59 billion. Mohegan Sun contributed approximately 55% to the company’s total revenues.

According to Mohegan Tribal Gaming Authority‘s Q4 fiscal results, ending September 30, 2023, Mohegan Sun faced a challenging situation, experiencing a 5% decline in net revenue to $224 million, and witnessing a substantial drop in Adjusted EBITDA, plummeting 134% to $56 million.

At the same time, Mohegan proudly announced its inclusion in Newsweek’s America’s Greatest Workplaces for Diversity list for 2024, emphasizing its commitment to fostering a diverse and inclusive culture.

The casino and hospitality giant views diversity as a critical component of business success and attributes its recognition to genuine respect for individuals from different backgrounds.

-Mk Ssports