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.

These Are American’s Favorite Casino Games

I love a good survey. Today’s question from the American Gaming Association is a simple one.

What’s your favorite casino game?

  • slots 48%
  • blackjack 16%
  • none 14%
  • poker 6%
  • roulette 5%
  • video poker 4%
  • craps 4%
  • sports book 2%
  • baccarat 1%

These results are from casino customers across the country. Since slot machines and video poker are combined in revenue reports this almost makes perfect sense.

The only minor surprise is that poker sneaks in with 6%. If it wasn’t such a popular home game I might be more surprised.

What do you think of these results?

Ranking MGM Las Vegas Hotels By Revenue

Bellagio Las Vegas Hotel And Fountain Show at Night
Bellagio At Night

Ranking casinos owned by the same company comes in handy more often than you think. If you’re looking for cheaper rooms, just look to the bottom of the list. If you’re looking for the most players club comps, just look to the bottom of the list. If you’re looking for better gaming odds, you’ll typically look at the bottom (but not always) of the list . If you want to hang with the masses, look to the top of the list because that’s where the money is being spent.

Last week MGM Resorts International reported their quarterly earnings. As part of that information it was easy to pull out how the casino hotels in Las Vegas were doing. In fact, it was real easy since the awesome Stiffs & Georges blog already did it.

  1. Bellagio, $303M
  2. MGM Grand, $255M
  3. Mandalay Bay, $205M
  4. The Mirage, $142M
  5. Luxor, $83M
  6. Excalibur, $70
  7. New York-New York $69M
  8. Monte Carlo, $69M
  9. Circus Circus, $51M

The revenue is fairly in line with how Mlife has the properties ranked when you’re looking for players club comps. If you’re looking at Monte Carlo or New York-New York I recommend you making your plans sooner than later because they should climb the priority chart when the construction is completed next year.

The Mirage is also undergoing a few renovations to freshen it up but it shouldn’t climb much, if any, on the MGM Resorts hotel rankings.

My final thought is more about the revenue for the MGM Resorts hotels than the rankings. It looks like the kiddie corner of the Vegas Strip (Mandalay Bay through Excalibur) is going pretty well. The better the hotels on the south end of the Vegas Strip do the more families and kids it will attract and the less chances that they will have me return as a curious visitor.

If this kiddie corner is creating a niche for MGM Resorts to make more money then it’s a win-win for the company and for me.  It keeps kids away from the casinos I like in Las Vegas and makes MGM Resorts more money.

Photo: Wandermom 

People Starting To Gamble At Cosmopolitan

Cosmopolitan of Las Vegas Casino Floor
Cosmopolitan Casino

The Cosmopolitan of Las Vegas has had its struggles since opening. They haven’t posted a positive quarter of earnings yet. They’re business model is “the future of Vegas” where 70% (or so) of the revenues come from the non-gaming parts of the casino. That probably won’t change in the future but as a casino in Las Vegas they need to show some form of life in the casino – even if it’s only 20%-30% of their revenue. Well, that may finally be happening.

The $3.9 billion resort posted its best quarter in terms of casino revenue, generating $40.87 million, a 32.6 percent increase from $30.83 million in the first quarter of 2012. The increase was “due to the performance of our table games,” the company said in an earnings filing with the Securities and Exchange Commission.

Overall the Cosmo continues to lose less money every quarter. Having 9 straight losing quarters isn’t good news, but the positive movement isn’t bad news. Overall Cosmo’s non-gaming entities are slowing their growth and if they didn’t install a $25 resort fee (about 10%) on hotel rooms they’d be looking pretty mediocre.

But, hey, people are gambling…WOO HOO!

Photo: Business Insider (Note, this photo is from pre-opening but the casino can still be seen this way every day.)

Cosmopolitan: Right Amount Of Wrong

Cosmopolitan of Las Vegas At Night
Cosmopolitan At Night

Remember the initial marketing campaign (“The Right Amount of Wrong“) for the Cosmopolitan? It was fortuitous in every way. Cosmopolitan is a really nice hotel with lots of good restaurants and bars. They also have the nightclub that brings in the most money in America with Marquee. Not too many people gamble at Cosmopolitan but that’s OK because the future of the casino business isn’t about gambling. Non-gaming revenue has been more than gaming revenue for over 10 years now.

Even though they have so many good things going on at the hotel they keep losing money. However, they do get the Charlie Hustle award for losing less money than the previous quarter. It’s cool, they don’t mind losing money.

For the quarter, the company reported a net loss of $30 million on net revenue of $141 million for the quarter…

“We are extremely pleased to see our unique approach to the Las Vegas market translate into the strong numbers reflected in our earnings report. Our 2012 financial performance affirms that the Cosmopolitan of Las Vegas brand and guest experience continue to resonate,” she (Amy Rossetti, vice president of public relations) said.

The Charlie Hustle award is named after baseball player Pete Rose who was nicknamed “Charlie Hustle”. He played the game hard and tried harder than just about anyone in baseball. When I played Little League the Charlie Hustle award was given to the kid that tried really hard but wasn’t usually one of the better players on they team. But hey, they tried.

Hey, the Cosmo tried. They deserve an award.

The Cosmo is doing a little better business than last quarter but they’re still losing money. I like the Cosmo a lot and enjoy going there but at some point they have to make money to keep the lights on. Right?

More On Why The Vegas Strip Is Changing

I love the Vegas strip. There’s no place in the world like it. There never has been and there never will be. It’s awesome. That said, the strip has been changing a lot from when I first started visiting Las Vegas for bettor better and worse. Right now the center of the Vegas strip is where you’ll find plenty of construction for The Linq, The Quad and Bill’s but in the next few years the construction will be moving to the north end of the strip with Resorts World and SLS Hotel.

The Vegas strip change isn’t anything new. CityCenter, Cosmopolitan and even Wynn ushered in change over the past decade because their customers are changing. People don’t come to Las Vegas just to gamble like they used to. They come for the night clubs, fine dining and shows. In fact, people have been coming to Las Vegas for those things more often almost every year since 1990 and in 1999 when people began spending more money on things beyond the casino.

 

Gaming Vs Non Gaming Revenue

Revenue is the total amount of money spent and not profit. This chart only shows gaming and non-gaming revenue so let’s look at an approximation on gross profit. The house edge (ie. gross profit) on some of the worst bets in the casino is only 30% with the lowest house advantages being under 1%. Meanwhile, the markup on a bottle of wine in a 4 star restaurant can be 200% or more. Even a soda at a low end restaurant will be marked up over 1,000%. The markup on a bottle of vodka at a nightclub dwarves all both of those.

In todays, corporate run, Las Vegas every square inch of a casino has to show a profit. This information has to be reported every quarter and in order to show shareholders that the future looks bright they have to always show a profit. Sure the casino may lure you in but the real money is made on those awesome SW steak dinners or at a table in Marquee.

Even if the Cosmo only gets a percentage of the revenue from Marquee there is a nice chunk of money to be made their from small stake plus rent plus overflow spending at restaurants and bars.

Gambling hasn’t left Las Vegas. Far from it. While the chart above shows that 35% of the revenue earned on the Vegas strip is from gaming you’ll find that Downtown Vegas still earns the majority of its revenue from gaming.

Moving forward expect this trend to continue. If you’re a gambler you’ll probably find better gaming options and more people like you downtown. If you don’t mind worse gaming odds and don’t mind being around different people you will still be able to find fun on the Vegas strip.

Personally, I love the both the gaming and non-gaming Las Vegas and look forward to seeing what the future brings.

Photo: abpan.com

Baccarat: Casinos Best Friend and Worst Enemy

Monthly casino gaming revenues take into account baccarat along with all other games you’ll find on the casino floor. Baccarat is a high roller game and wins and losses for players and casinos are drastic.

baccarat is showing the greatest strength in the casinos. “Baccarat figures are volatile,” said Lawton, who predicts baccarat win will increase 5 percent this fiscal year and increase an estimated 3 to 4 percent in the coming biennium.

Maddox said the Wynn properties market to the high-end players. He said the casinos “overly rely on 150 international customers willing to wager millions of dollars.”

I don’t write, or talk, about baccarat much because 1) I find the game boring and 2) when I was learning how to play the game in Atlantic City a friend and I were called Gweilo (AKA “White Devil”) by one of the Asian players at my table. I don’t need that in my life.

High rollers play baccarat since it has such great odds and fair returns on their money spent. Since big baccarat games (the game held in their own room and not mini baccarat on the casino floor) have such an impact on casino and overall state gaming revenue it comes as no surprise that casinos would focus on bringing in baccarat players.

Baccarat is basically an even odds game so the hefty wagers can swing casino revenue one way or the other in a day, let alone a quarter or year. Since the game is essentially a coin flip it’s no surprise that it’s expected to continue to grow in popularity.

Even though most baccarat players are high(er) rollers it’s interesting that Wynn Las Vegas only focuses on 150 players to make satisfy their baccarat income for any given month. These are the highest of the high rollers.

This is something to take into account when you’re a medium roller (like me) wondering why your $25 blackjack or $1 video poker play isn’t gaining much in return from the players clubs at casinos have baccarat (Not all casinos have big baccarat games). If casinos lose a few medium rollers it doesn’t directly effect their bottom line. It’s another story if they lose one of these 150 big baccarat players gambling millions of dollars on a weekend.

This is simply common sense but the reminder of how significant your play is to a casino allows you to manage your expectations and keep things fun at the casino. I know I can use the reminder after a bad weekend of gambling at Encore and Wynn.

Cantor Gaming Rumored To Take Over Caesars Sportsbooks (again)

The rumors about Cantor Gaming taking over Caesars Entertainment sportsbooks are out there again. This rumor has been around for over a year. After all, it takes a while for such large companies to turn the battleship negotiate a deal.

This is just a tweet from a source I don’t know, but I’ve been following this since the initial rumor and everyone I’ve spoken to thinks that this a) makes sense and b) is inevitable.

Caesars has been partnering with more companies then ever before and this is a natural partner. This is low-risk for Caesars Entertainment since sportsbooks only produce about 1% of gaming revenue for casinos and potentially improves infrastructure in their casinos.

January 1 allows Cantor Gaming some time to set up operations in the sportsbooks throughout Nevada in time for the Super Bowl. Remember, Caesars has properties in Laughlin, Reno and Lake Tahoe in addition to Las Vegas.

If the rumor is true this time we should expect an announcement later this year and construction to begin on a new Caesars Palace sportsbook. If they can replicate the beautiful Venetian sportsbook, Caesars Palace will have a beautiful new centerpiece for their casino at little cost.

I’m looking forward for this deal to become official so I can dig a little deeper.

What Do People Do at Cosmopolitan?

The Cosmopolitan of Las Vegas reported 2nd quarter earnings today and it gives a small look into how the casino earns it’s money.

Sequentially, results from the property’s casino declined from the first quarter. Gaming revenue in the second quarter of $28.2 million was down from $31 million.

Hotel revenue in the second quarter of $45.9 million was up from $34.4 million in the first quarter thanks to the extra rooms, strong room rates ($246 on average) and occupancy trends (91.4 percent on average).

Food and beverage revenue at the property, known for its restaurants and nightclub offerings, continued to generate the biggest chunk of revenue — $70.1 million in the second quarter v. $57.6 million in the first quarter.

So, people continue to stay and eat and drink at the casino but don’t gamble – in fact they’re gambling less than the quarter before. This is no surprise and from what I’ve seen it won’t be changing any time soon. The gaming promotions they’ve started are aimed at the small player and while that’s a good start, it’s not going to show any immediate effect. It looks as if they are changing some of their focus towards big players.

The company said the second quarter results included a $2 million charge to write off the value of a lounge, which will be demolished to make way for an additional high-limit gaming area. The 9,600-square-foot area will include 15 table games and is expected to be completed by November.

So they’re going to add high limit tables to a place where people don’t gamble. Does not seem like a smart move. I’ve never seen anyone playing in the high limits room, but I’m not at Cosmo 24-7 so what do I know. Maybe they’re playing between 3am and 5am like the high rollers in every other casino. Yes, I’m mocking.

I still don’t understand why the Cosmo won’t add a poker room. It’s another way to draw gamblers who will eventually play other games.

For as horribly as the Cosmo has marketed their casino to gamblers, I love it and will be back shortly for a bite to eat, a drink, a show and maybe a little video poker. As noted above, food and beverage is doing well. It’s easily their best feature and what keeps me coming back. Hopefully they get their stuff together so I can enjoy the place before they’re forced to see to Caesars or, more likely, MGM.