Gaming - Busy Days and Golden Knights: Takeaways from Las Vegas Management Meetings

研报英文原文证据摘录

Gaming - Busy Days and Golden Knights: Takeaways from Las Vegas Management Meetings

nsumer perception survey).

One-third of all purchasers thus far are new to the MGM Rewards database, and the

program is helping lower-end properties with the Excalibur buffet the most frequently

visited food location. With operators trying all sorts of new strategies to attract

customers, we'll watch for any increase in the promotional environment - such as

Fontainebleau (Private), which recently waived resort fees for the balance of the year.

You know what? That's private. On the heels of recent newsflow that CZR would

be acquired by Fertitta Entertainment, along with a public IAC takeover bid for MGM,

other management teams were interested to see next steps for both processes. On

the Strip, competitors didn't see any reason that one/both being taken over would lead

to malaise/easier temporary competitive dynamics if management teams remained in

place. In the regions, with FTC reviews potentially driving some divestitures, potentially

acquisitive operators sounded watchful for the right opportunities. Notably, our contacts

saw no reason why one/both deals wouldn't be approved. We are interested to see if

any actions to address CZR’s lease coverage in its VICI regional lease are made during

a lengthy ~12-month M&A review process for the Fertitta transaction.

Core Locals play strong, though destination remains softer amidst construction.

Both RRR and BYD generally agreed that core Locals trends remain strong, though

some destination travel remains more challenged. Higher gas prices have had limited

impact thus far, but operators were wary as to the effects of what sustained higher prices

could bring – esp. at the low end. Both RRR and BYD are pleased with construction