6B Tuesday BUSINESS May11, 2021 reviewjournal.com

DOWJONES S&P 500 NASDAQ CRUDEOIL 10-YR. NOTE GOLD SILVER COPPER EURO 34,742.82 4,188.43 13,401.86 $64.92 1.60% $1,837. 50 $27.48 $4.73 $1.2145 t 34.94 t 44.17 t 350.38 s $0.02 s 0.03 s $6.40 s $0.02 t $0.04 t▼ $0$ .0020 Wynn to spin off mobile bettingapp

By RichardN.Velotta Knightsowner Foleyispartner in newcompany Whenthe deal is completed,the Las VegasReview-Journal combinedcompanyisexpectedto have an enterprise valueofabout Wynn ResortsLtd.isbeefing up will separateWynn InteractiveLtd., ther accelerategrowthand enable $3.2 billion —4½times Wynn Inter- its sports presence with aplanto asubsidiary of Wynn Resorts, into the business to capture the massive active’sprojected 2023 revenue. spin off its WynnBET mobile sports an independentpublic company. opportunityinNorth America,”said When the deal closes,about appand merge into anew publicly Upon closing of the proposed Wynn CEOMattMaddox. $640 million in cash will be available tradedcompanywith investor Bill transaction, the combinedcompany “BillFoley is the ideal partnerto to fund the combinedcompany’s Foley, principal ownerofthe Golden will retain the “Wynn Interactive, ensurecontinued success —his track operations and supportnew and Knights. Ltd.”name and relist its shares on record with businesscombinations, existinggrowthinitiatives. Companyexecutives announced the Nasdaq StockExchangeunder extensiveexperience growingmar- Following the closingofthe trans- during Monday’sWynn Resorts the tickersymbol“WBET.” queeconsumer brandsand partner- action, Maddox will continue to earningscall that thecompany has “Weare confidentthat this trans- ingtomaximizevalue in businesses serveaschairman; CraigBillings will signed an agreementwith Foley’s action will unlock the tremendous likeours will be invaluable as we Austerlitz AcquisitionCorp. Thedeal potential of Wynn Interactivetofur- continue scaling,”Maddoxsaid. See WYNN 5B Bally’ssees long-term potential in the Trop Gamingcompany staysbusybuying By BaileySchulz Las VegasReview-Journal

Bally’sCorp.’s spendingspree has no end in sight. TheProvidence,Rhode Is- land-basedcompany, which pur- chased the brand name from Cae- sars EntertainmentInc.lastyear, boughtnine properties between March2019 and last month. Three morependingcasinopurchases have yettoclose, includingthe com- pany’s$150 million purchase of the StrippropertyTropicana’snon-land assets. Thecasino purchasesand various L.E. Baskow Las VegasReview-Journal @Left_Eye_Images Construction by the DapperCompaniescontinues Monday on thepropertyataformerU.S.PostOffice in downtownLas Vegas. digital assetdealsfallunder Bally’s plans to further its omnichannel strategy,whichcontinues toramp up as operatingenvironments im- Developer has loftyambitions prove. “Weare encouraged by the rate and effectivenessofvaccinations as well as the looseningofcapacity re- JDapperwants rooftop restaurant for$30Mdowntownproject strictions and other COVID-19pro- tocols,”Presidentand CEOGeorge By EliSegall anearly$20 million construction Dapper. Papaniersaid in aMondaycall with Las VegasReview-Journal loan. It is slated to be joinedatthe investors.“We areconfidentthat Itsguttedfloors arevisible to property by Broken Yolk Cafe, we’ll continue tobenefitfroma Construction is underway on passersby.Dappersaid he aims Taco Reforma,Baguette Café and strong rebound in demand.” adecades-olddowntownLas to finish the $30million project PachinkoPub,with the latter three Vegasbuilding that is slated to 11 months from now. to be on the ground floor of a Opportunistic approach getrestaurants,co-working office Thebuildingwas perhapsbest plannedsix-story parkinggarage TheTropicanadeal is expectedto space and, the landlordhopes,a known lately for itsground-floor next door. closeinearly 2022 and wasde- rooftopeatery. U.S. Post Office,which hasbeen Woven, ashared-office-space scribed by the companyasan“eco- DeveloperJDapper said Monday based in atemporary trailer on- venturelaunchedbyDapper nomical entry” tothe Stripmarket, that work startedtwo weeks ago site for the past severalmonths and workplace-furnituredealer with long-term potential upside. at 201 Las VegasBlvd. South, at and will move backinwhen the Carson Avenue,when he closed on building is ready,accordingto See CARSON 5B See BALLYS 5B Full HouseResorts recordsbig revenuejumpinfirstquarter

By Mike Shoro company, ChiefFinancialOfficer Hyattnumbers will getbetter,” Lee in 2020 and$1.6 millionin2019. Las VegasReview-Journal LewisFangertold investors during an said. “Hopefully localbusiness—that Restricted capacity forski areas this earnings call Monday. is,the other half of ourbusiness there winter as well as minimal meeting and Full HouseResorts Inc. is off to ItsNevada operations —Stockman’s —will stay strong. And eventually the conventionbusinesshamperedGrand astrongstartthis year,the Las Ve- Casino in Fallonand Grand Lodge Navy will allow their people to leave Lodge, Leesaid. TheNaval AirStation gas-basedcompanysaid Monday. Casino at HyattRegencyLakeTahoe (Naval AirStation Fallon), and that’ll in Fallon hasbeenlockeddown, hurt- Thecompanyreported$42.2 mil- in Incline Village—areits smallestca- be goodfor us.” ingStockman’s. lioninrevenue duringthe first three sinos and the ones hardesthit by the Thecompanysaid it generated ChurchillCounty, which is home to months of the year,comparedwith COVID-19 pandemic.But CEODan $4.4 millioninNorthern Nevada Fallon and the navalair station, “feels $30.9millionduringthe same time LeeisoptimisticNorthern Nevada is during the first quarter,upfromthe likeit’slargely outofthe woodswith last year and$40.5 millionin2019. ready to rebound after “a pretty good first quarter last year ($3.1 million) thepandemic,” Fanger said.“And so Cuts inlabor andmarketing,aswell quarter,” all things considered. and in 2019 ($3.9 million). Netlossfor it feels like therestrictions on that as restructured operations,continue “I think as people getvaccinated, thequarter was$3.4 million. Netloss to drivedownoverall costs for the when people starttravelingagain, the was$4.4 millionfor the same period See FULL HOUSE 5B LASVEGAS REVIEW-JOURNAL Tuesday, May11, 2021 BUSINESS 5B ▶ CARSON THE BOTTOM LINE Stocks of localinterest Continued from Page 6B YTD Name Ticker LastChg %Chg Henriksen Butler,will occupythe Allegiant Travel ALGT 219.49 -5.25 +16.0 existingbuilding’ssecond and third Barrick GoldGOLD 23.93+.01+5.0 Boyd Gaming BYD64.20-3.49 +49.6 floors. CaesarsEnt CZR 104.68 -1.07 +40.9 Dappersaid he is in negotiations Everi Holdings EVRI 18.05-.30+30.7 Full HouseResorts FLL9.45-.53+140.5 for arooftoprestaurantthereas Golden Entertain GDEN 43.28 +1.37+117.6 well. Howard Hughes HHC 109.78 -.95 +39.1 Downtown already hasplenty LasVegas Sands LVS57. 14 -.56 -4.1 MGMGrowthProp. MGP 34.67 -.57 +10.8 of eateries,including nearhis MGMResorts MGM 39.46-.46+25.2 building, butDapperbelieves the Penn National PENN 81.07 -5.55 -6.1 PlayAGSAGS 9.21 +.02 +27.9 area canhandle anotherbatch of RedRockResorts RRR 39.39+.77+57.3 competitors. Scientific Games SGMS 52.13 -3.89+25.6 Southwest Airlines LUV 61.35 -.31 +31.6 He noted that one of his new Southwest Gas SWX71.90 +1.53+18.4 tenants is abreakfast place,and Spirit Airlines SAVE 34.43 -.70+40.8 that Eat, aneighborhood breakfast SwitchSWCH18.11 -.02 +10.6 Wynn Resorts WYNN 125.73-.56 +11.4 and lunch spot,draws plenty of customers. GBC THRESHOLD MET “There’salwaysawait,” he said. TheStrat gets approval Dapper, founder of Dapper forfullcasino capacity Companies,purchased the property in 2018.Beforethe current TheStrat has received Nevada Gaming construction started, he already Control Boardapproval to operate its gutted the second and third floors casino floor at 100 percent capacity and removedhazardous materials forthe firsttime since reopening last summer, according to TheStrat’s such as asbestos,hesaid. ownership group, Golden Entertainment AccordingtoDapper’s firm,the Inc. Therestrictions lift immediately. buildingwas constructed in the L.E. Baskow Las VegasReview-Journal @Left_Eye_Images “Our team worked diligently to meet 1970s and wasoriginallyknown JayMadrid, right, andLeonardoMejia work on metalsupport beams Monday as the Nevada Gaming Control Board’s as the Nevada Savings and Loan constructioncontinues on themulti-usecommercial property in downtownLas Vegas. requirements, which notonly advance Association Building. us to the next step in safely reopening Thearchitects,Walter Zick and holdings include the shuttered nextthree years renovating that Las Vegas, but also enhance our guest Howard Sharp,alsodesignedthe Huntridge Theater. He closed his property. experience,” TheStrat’s vice president Moulin Rouge, The Mint and Clark $4 million purchase of the World and general manager, Stephen Thayer, High School, amongother projects, WarII-eravenue March31, in a Contact EliSegallatesegall@ said in aMondayrelease. “Wewill DapperCompanies said. deal facilitatedbycityofficials,and reviewjournal.com or 702-383-0342. continue to support additional measures, Dapper’sother real estate his firm hassaid it will spendthe Follow@eli_segallonTwitter. including mask mandates, to provide a safeand healthyenvironment forteam members and guests.” come outof’21 and go into ’22 with said, “I feel liketalking aboutwhat Golden Entertainment held vaccine ▶ WYNN brand-new room product and this is we’reseeingnow is morethanwhat clinics forits employees and their Continued from Page 6B not just asoft refurborrag job. This we experiencedinthe firstquarter families in recent weeksatmultiple of is afullremodel of theserooms and I as we sawour strength continue into its Southern Nevada properties. Nearly continue to serveaspresident and think it’s really goingtobeacompet- Februaryand March.” 6,000 Nevadans work at the company’s executivedirector;WynnInterac- itiveedgefor us goinginto2022.” Wynn generated$43.9 million in casinos, gaming routeoperations and tiveco-founder Sadok Kohen will Maddox pointedout that the cash flow and duringGoldenWeek, PT’s Tavern locations. TheCosmopolitan of Las Vegas, Wynn continue to serveaschief product timingofthe remodelingwill be hotels had93percentoccupancy Las Vegas and Encoregot the go-ahead officer and director; and Norbert good for the companybecause and $3 million in cash flow perday. to return to full capacityoncasino floors Teufelbergerand EllenWhittemore Wynn really hasn’t used its new Las Vegasand Boston hadsimilar this month. will continue to serveasdirectors. 400,000-square-foot conference results. Additionally, Foleyintends to serve centerthat opened in early 2020,but Slotmachine revenueof$25 mil- STOPPING COUNTERFEIT as adirector on thecompany’s wasshutdownbyCOVID-19 restric- lion at Wynn Las VegasinApril was board. tions in Marchofthat year.Maddox apropertyrecordgreater than any Amazon says it blocked CurrentshareholdersofWynnIn- said the companyrecentlywrapped other month in its history. 10B phonyposts in 2020 teractivewill retain about79percent up hostinga600-person show in the He said hotel occupancywas in Amazon, which has been under of the combinedcompany, includ- conference center and it wascom- the 90 percentrange on weekends pressurefromshoppers, brands inga58 percentcontrolling interest pleted“without ahitch.” and around 70 percentatmidweek. and lawmakers to crack down on to be held by Wynn Resorts. Amoreintensiveschedule will “Las Vegas’ opportunityisreal- counterfeits on its site, said Monday occur in the months ahead. ly unique and the best times are thatitblocked morethan 10 billion Room makeover “While the backhalf of ‘21 looks ahead,”Maddoxsaid. suspected phonylistings lastyear before Thecompanyalsoannounced that good,’22 is reallystrong,”hesaid. Things arealsolooking up in Mas- anyoftheir offerings could be sold. it will spend$200 million to remodel sachusetts.OnApril 27, thegovernor Thenumbers were released in rooms at Wynn Las Vegas. Theproj- ‘The besttimes areahead’ thereannouncedaphased plan for Amazon’s firstreport on its anti- ectwill begin in July and is expected Maddox said duringthe earn- further reopeningand increased counterfeiting efforts since it announced to be completedbythe beginningof ings call that while Wynn posted a capacity over the nextseveral newtools and technologies in 2019. 2022. 44.8 percentdecline in revenueand months.EffectiveAug.1,subjectto Thenumber of suspected badlistings Maddox toldinvestors that rooms anet lossfor thequarter that ended public health and vaccination data, thatitblocked lastyear wasupabout hadn’t beenremodeledatthe prop- March31, momentumhas been ac- all industryrestrictions will be lifted 67 percent from the year before. erty since 2010. He said the com- celeratingsince the MarchMadness and capacity limits will increaseto TheSeattle-based e-commerce behemoth said the number of panyhad aplantoremodel rooms NCAA basketball tournament. 100 percent. counterfeiters attempting to sell on in 2019, butthat wasthwartedby He said the acceleration is across Wynn shares closed down 56 the siterose as scammers tried to take the uncertainties of the COVID-19 the boardfor the company, from cents,0.4 percent, to $125.73 ashare advantage of shoppers who were buying breakout. its three properties in MacaotoLas in averagetradingonthe Nas- moreonline during the pandemic. He offered no details on what the Vegasand EncoreBostonHarbor. daq exchange.After hours, shares Thecompany’sefforts come as remodelingwould include. Comingoff asuccessful Golden rebounded77cents,0.6 percent, to lawmakers arelooking at waystoreduce “What we want to do is we want to Week holidayinMacao,Maddox end at $126.50 ashare. counterfeits online. Republican Sen. Bill Cassidy of Louisiana and Democratic Sen. Dick Durbin of Illinois re-introduced amortization—whichmeasures management indicated that Bally’s the INFORM Consumers Actthis year. ▶ BALLYS overall financialperformance—in- sports bettingapp could launchin It would requirethird-partysellers to Continued from Page 6B creased 80 percentyear over year. its first state, Colorado,bythe end be verified and to disclose their name “Thecompanyremains commit- of the month and could be live in and address to shoppers. Thebill was “TheLas VegasStrip is the tedtothe operatingefficiencies three additionalstates by the end of introduced lastyear, but wasn’t votedon. pre-eminentdestination,visitedby found throughout(the pandemic) the year. over 40 million players and guests and reiterated that it would be PROJECTIONS EXCEEDED everyyear,” Papanier said. “We are thoughtful as to howitreintroduces Growingmomentum Switch reports $11.6M confident that this addition to our less profitable amenities,”DeCree Revenueinthe firstquarter was first-quarter tine ncome brick-and-mortar portfolio will said inaMondaynotetoinvestors. $192.3 million, up 76 percentcom- significantly enhance ourrobust As for futuredeals, Papanier pared with the same period the year Switch Inc. on Mondayreported customer base,whichincludes said the companywill continue to before. Income from operations first-quarter tine ncome of $11.6million, morethan15million connected be opportunistic butdisciplined, was$29.5million,Bally’sstrongest after reporting aloss in the same period customers,and unlocksadditional lookingfor assets that giveBally’s quartersince the second quarterof ayear earlier. On aper-sharebasis, the Las Vegas- marketingopportunities for us to accesstosportsbettingand iGam- 2019. based companysaid it had profitof leverage the iconic Bally’s brand.” ingmarkets. Thecompanycurrently Jefferies analystDavid Katz said 9cents. Earnings, adjustedfor non- The$308 million transaction owns and operates 12 casinos in in aMonday notethatthe results recurring gains, were 8cents per share. wasmade with Gaming&Leisure eightstatesand hasabout $402mil- are“solidacrosssegments given the Theresults surpassed Wall Street Properties Inc. andisBally’ssecond lion in total liquidity,ofwhich$152 uneven recovery”and reflectstrong expectations. Theaverage estimate deal with thereal estate investment million iscash on hand. margin performance acrossthe of fiveanalystssurveyed by Zacks trust. Once it hasclosed, five of Bal- In addition to brick-and-mortar gaming industry. Investment Research wasfor earnings ly’s properties will be leasedfrom casinos, thecompanyhas acquired Papaniersaid the positiveresults of 5cents per share. GLPI. ahandful of digital assets as partof were driven by the vaccinerollout, Thedatacenter operator postedrevenue “Another recentlyannounced its mission to become the first truly looseningoperating restrictions of $130.9 million in the period, also topping (sale) nearthe Stripsuggests our integrated omnichannel gaming and limited entertainmentop- Streetforecasts. Six analystssurveyed transaction is agood one,” Chief company with abusiness-to-busi- tions.Hecontinues to see potential by Zacksexpected $129.2 million. FinancialOfficer and Executive ness-to-consumer business model. upsides,knowing customer groups Switch expects full-year revenue in the Vice PresidentStephen Capp said, It recentlyannouncedplans to like thoseinthe 65-and-older range of $543million to $555 million. Its likely referring to the Palms sale acquireonline gaming operator demographic have seenstrongre- shares have increased 11 percent since announcedlast week. “Whilewedo GamesysGroup,the No.1provider bounds buthaveyet to fullyreturn. the beginning of the year. remain committedtothe outright of bingo andcasino gamesinthe “Aswecontinuetosafelywel- ownership of agood portion of our UnitedKingdom. come ourcustomersbackatour SHAREPRICE CLIMBING real estate portfolio,this transaction After the acquisition, whichis facilities,webelievewecan return CallawayGolfreports is anotherexample of ourcontinu- expectedtoclosebythe end of the to pre-COVIDlevels in shortorder,” Q1 income of $272.5M ingtoexecute on an opportunistic year,Bally’s“will be well positioned Papanier said. basis.” to capitalizeonsignificant growth Bally’s shares closed down 5.3 Callaway Golf Co. on Mondayreported Union Gaminganalyst John De- opportunities inthe sports betting percentMonday at $55.17 on the first-quarter tine ncome of $272.5 million. TheCarlsbad, California-based Cree said Bally’shas clearly benefit- and iGaming marketplace,” said NewYorkStock Exchange. companysaid it had profitof$2.19 ed from recentlyacquired proper- AdiDhandhania,Bally’sseniorvice per share. Earnings, adjustedfor gains tiesbut alsonoted that same-store presidentofstrategyand interac- ContactBaileySchulzatbschulz@ relatedtomergers and acquisitions, adjustedpropertyearningsbefore tive. reviewjournal.com.Follow@bailey_ came to 62 cents per share. interest,taxes,depreciation,and As for mobile sports betting, schulz on Twitter. Theresults exceeded Wall Street expectations. Theaverage estimate of six analystssurveyed by Zacks ▶ “Sowhile Nevada haslagged — Indiana. Alittle morethanhalf of Full Investment Research wasfor earnings FULL HOUSE knock on wood —thereare hopefully House’s first-quarter revenuederived of 12 cents per share. Continued from Page 6B some signsthat we’llstarttosee that from its BaySt. Louis, Mississippi, Themaker of golf equipment go the otherway in the next monthor property, Silver SlipperCasino Hotel, and accessories postedrevenue of base areprobablygoing to starteasing two.” thecompany reported. $651.6million in the period, also beating sooner versuslater.And what we hear Full Househas gamingoperations Streetforecasts. Six analystssurveyed from the HyattoveratGrand Lodge in Mississippi, Colorado,Indianaand Contact Mike Shoroatmshoro@ by Zacksexpected $571.7 million. is that thiscould very well be avery Nevada,and five currently operating reviewjournal.com or 702-387-5290. Callaway shares have increased robust summerseason forthem.” sports betting“skins”inColorado and Follow@mike_shoro on Twitter. 25 percent since the beginning of the year.