Wynn And Las Vegas Sands Gambling Revenue Per Day Might Surprise You

Las Vegas Sands Gambling Revenue
The Venetian

The casino always has the advantage in gambling so they’re guaranteed to make money as long as they have customers. The amount of money made in a casino probably wouldn’t surprise anyone. When we see gaming revenue it’s usually in bulk form from quarterly reports.

Sure the bulk numbers are impressive but when you see the table game and slot machine revenue from Wynn and Las Vegas Sands (The Venetian and The Palazzobroken down by day per table (updated for clarity) by fool.com you might be surprised.

Las Vegas Sands

  • Table Game Revenue Per Day – $3,737
  • Slot Machine Revenue Per Day – $185

Wynn

  • Table Game Revenue Per Day – $8.130
  • Slot Machine Revenue Per Day – $276

These numbers are impressive but are dwarfed by similar revenue from Las Vegas Sands and Wynn Macau casinos (see full chart here).

Wynn has some of the biggest baccarat games in Las Vegas so the difference in table game revenue between Las Vegas Sands and Wynn doesn’t come as much of a surprise. The difference in slot machine revenue is a bit surprising since Las Vegas Sands has so many more slot machines between their properties.

Whatever the case people are losing a lot of money every day gambling in these casinos. If we do win the casino will just sue for their losses anyway.

MGM Resorts > Wynn + Caesars + Venetian + Palazzo

MGM Resorts In Las Vegas
MGM Resorts In Las Vegas

I was reading news last night and found an interesting bit of information about Las Vegas that I never thought about before. MGM Resorts owns as much property in Las Vegas as Las Vegas Sands (Venetian and Palazzo), Wynn (Wynn and Encore) and Caesars Entertainment (10 hotels + The Linq) combined.

  • Las Vegas Sands – 82 acres
  • Wynn – 240 acres
  • Caesars – 414 acres
  • MGM Resorts – 742 acres

I can’t say that I’ve ever thought about how much property any of the casino operators in Las Vegas owns. I find the fact that MGM Resorts covers so much space interesting considering Wynn has a golf course and Caesars has a mall with a big ferris wheel that occupies a lot of space.

I think many of us forget that MGM owns a massive amount of land on the north end of the Vegas Strip (City of Rock) that nobody thinks about since it’s still undeveloped.

If nothing else it will provide more useless Las Vegas knowledge that I can wow people with.

There’s a link between land ownership and stock value and Macau. You can read more about how Macau Gaming Crackdown Drives Bettors To Las Vegas.

Photo: HackMyTrip

How Long Until Sheldon Adelson Dumps Cantor Gaming From The Venetian?

Sheldon Adelson Las Vegas Sands
Sheldon Adelson

Last year Sheldon Adelson, big boss at Las Vegas Sands, decided that he would fight online gaming instead of welcoming it into his casino business. He’s so against online gaming that he’s now crusading to stop it.

Adelson is preparing a public campaign to portray online gambling as a danger to children, the poor and others who could be exploited by easy access to Internet betting.

I think it’s a strange use of money to fight against the industry that made Sheldon Adelson billions, but what do I know. Like many other casino operators Las Vegas Sands (The Venetian, The Palazzo, etc.) has been positioning itself as a landlord more than a casino operator. Fighting online gaming simply looks as if it’s another way for Adelson to shake the “stigma” of being seen as just a casino guy.

I find it interesting that Las Vegas Sands keeps Cantor Gaming as the sportsbook operator at The Venetian and The Palazzo. While those are fantastic physical sportsbooks you are encouraged by Cantor Gaming to sign up for a mobile account where you can bet on games anywhere in Nevada.

Since its inception Cantor Gaming has been on the forefront of moving sports betting with cutting edge technology. Ultimately they’d like you to be able to bet on games anywhere that its legal. Additionally you can use a Cantor mobile device to play traditional casino games on property. This isn’t a battery operated game. This is online gambling supported by Las Vegas Sands.

Cantor Gaming sounds like a company Sheldon Adelson should be fighting, not embracing. 

Lagasse’s Stadium at the Palazzo and the traditional sportsbook The Venetian are my two favorite sportsbooks in Vegas. I don’t want to see them go away.

Back to the beginning of this discussion: Until Adelson removes Cantor Gaming from operating on his properties it’s difficult to take his fight against online gaming seriously

Photo: The Week

Sheldon Adelson Doesn’t Want Your Online Gaming Money. #GOML

Sheldon Adelson Las Vegas Sands
Sheldon Adelson

Sheldon Adelson, CEO Las Vegas Sands, doesn’t like online gaming and thinks it’s a cancer. Sheldon Adelson considers online gaming a gateway drug to the downfall of mankind. Adelson says he doesn’t want any money from online gaming. Ever. Now get off his lawn. He’s cranky!

Sheldon Adelson is also probably not telling the truth. In the past couple years Las Vegas Sands has changed all of his poker rooms to be “Sands Poker Room” so that they can brand the poker rooms across the world to be the same. Las Vegas Sands isn’t branding everything the same. There are still Venetian’s and Sands’ and Palazzo’s around the world. But poker…that’s a streamlined brand.

Here’s an interesting interview with Sheldon Adelson bashing online gaming on Bloomberg News. It’s almost 8 minutes long so save for when you have the time.

The video doesn’t want to embed this morning. Maybe it needs more coffee too. you can watch it here.

Shout out to @Detroit1051 for sharing this.

Casino And Hotels As A Separate Business

Is the separation of casinos business and hotel business and retail business a good thing? Penn National thinks it’s good business. A few weeks ago they split their casino and hotel businesses into two separate companies.

Penn National Gaming has announced that it will split itself into an operating company and a REIT. The casino properties will be cleft between the two entities, with Penn National leasing most of them from the REIT.

A REIT is short for Real Estate Investment Trust. Separating the hotel and casino operations wasn’t only done because it may be good business, but it was also done to save in taxes.

OK, let’s get right to the bottom line: This is a big-ass tax dodge. REITs are exempt from federal taxes. Ergo, Penn rents property to itself and then is “required by law to distribute at least 90 percent of [its] taxable earnings to shareholders as dividends.”

This sounds half like a sketchy big business avoiding taxes but also like smart business move that may provide better service to the customer on both the hotel and casino businesses. Service should become better since employees will be concerned with less and able to focus on creating better experiences.

Penn National is the only company doing this right now, but Seeking Alpha thinks that seperating hotel, casino and mall business would be a good idea for Las Vegas Sands (LVS) (The Venetian & The Palazzo).

LVS is known for its exceptional gaming and lodging brand, but the company’s value proposition is centered on three different (and integrated) business models: Malls, Lodging, and Gaming. Collectively, the company’s three platforms provide tremendous value, and individually, the pieces appear to be worth more than the whole.

I don’t think that big businesses are always able look to the customer first. Take LVS, their priority is split between casinos, hotels and malls on multiple continents. Taking 2/3rds of the worry out of the hands of one person, for example, and handing it to 3 experts in different fields should help make each company operate better.

Additionally if employee bonuses are tied to the performance of their individual company as opposed to all 3 divisions as one company there isn’t the ability to let focus go on a division.

This should produce a better experience for the customer. On the surface, I think separating casinos from hotel and malls could be a good thing for everyone.

Photo – kinchloe

I Hope This Doesn’t Mean 6:5 Blackjack Is Coming To Venetian and Palazzo

Venetian Blackjack Table
Venetian Blackjack Table

I was doing my weekly catch up on Las Vegas news on Sunday when I saw a post on Wizard of Odds that made me cringe a little.

A little background first. Wizard of Odds is my go-to for any gaming odds and strategy. I source their information often. In fact, when I wrote about where to find the best blackjack in Las Vegas for Vegas Chatter I used their information.

I didn’t realize that Michael Shackleford worked at Las Vegas Sands (Venetian & Palazzo) until I read that he was no longer working there.

Let it be known I am no longer working for the Venetian. It would be an understatement to say that my feelings about the termination are acrimonious.

…I started with the Sands corporation on April 30, 2012. My job title was Director of Gaming Mathematics. Physically, I worked in the Venetian, but my job was at the corporate level, pertaining to all things table games in all the Sands casinos worldwide.

Venetian and Palazzo both have some of the best blackjack that you will find on the Las Vegas strip. Specifically, Palazzo is my favorite place to play blackjack on the Vegas strip.

I’m not sure if Mr. Shackleford is the reason for the good blackjack, but I’m sure it didn’t hurt. The rest of their games are strip average at best. Venetian and Palazzo’s 3:2 blackjack dealt from a shoe for all denominations stand out from the Continuous Shuffle Machines at MGM properties and the 6:5 blackjack at Caesars properties.

I hope Mr. Shackleford’s departure from Las Vegas Sands doesn’t mean that the blackjack will go away too. Even though I don’t know him I wish Mr. Shackleford the best.

 

Las Vegas…You’re A Has-Been

I love Vegas and you love Vegas, but does Wall-Street love Vegas? Maybe they don’t love Las Vegas. In a year-end review of MGM Resorts International’s stock price, The Motley Fool said that MGM’s poor performance was, in part, due to Las Vegas being a has-been gaming market.

The first problem MGM faces is that it’s largely centered in Las Vegas, which has become the has-been of the gaming world. With rivals Las Vegas Sands (NYSE: LVS  ) and Wynn Resorts (Nasdaq: WYNN  ) increasingly focusing on the strong Asian gaming markets, MGM has to depend largely on the health of the Vegas Strip, where gaming wins have fallen steadily since their 2007 peak.

While the take-away that Las Vegas is a has-been seems strong, it’s fairly accurate. The world is changing and so is where people gamble. In the past we’d see Wynn fly their Asian high roller to Vegas, but it’s much more economical for them just to fly to Macau where the player will still get signature Wynn service at a brand new casino.

With 48 states making money from gambling and online gaming becoming legal in the future we will continue seeing casino companies diversify out of Las Vegas searching for new income streams. New York, Miami and Boston are among the major cities looking to expand their gaming in the next few years while Philadelphia already has a casino in the city while there are multiple options in the Philly suburbs.

This is not to say Vegas won’t always rule our gambling vacation lives, but it is to say that there are other places inside and outside of the country that will be getting the attention that we’ve come to expect.

I’ll have more thoughts on the future of comps, with this being the case sometime next year because there’s a lot to consider.