TRWH, also known as Twin River Worldwide Holdings, may have finally gotten a hold on the gambling industry in Rhode Island.

Presently, the company is the only one running the two casinos in the state. Recently, things have gotten to the fore as it has started to feel pressure from other competitors.

The organization will release its financial earnings for the Q3 of 2019 tomorrow. In preparation for this, they clearly tried to put a lid on the optimism of people as regards their financial performance. The reason for this is because of Encore Boston Harbor.

According to Calvin Ayre, data already released by gambling regulators of Rhode Island show that GGR (gross gaming revenue) in the state, which represents Twin River Lincoln and Twin River Tiverton, has dropped by 9%.

This happens to be the first full quarter that the company owned by Wynn Resorts property has been in full operation.

Analysts are beginning to take note. Brad Boyer of the Stifel Financial Corp. had this to say about the report

“Based on WYNN’s reported results and comments from others operating in the market, we sense WYNN’s promotional spend, particularly with respect to its slot business, has remained elevated, an outcome that will likely have negative ramifications for TRWH’s margin performance over the next several quarters.”

The seasoned analyst had expectations that TRWH would get an estimated turnover of about $307,000,000 and $311,000,000 in 2020 and 2021 respectively.

However, with the released figures and the warning by TRWH changes have to be made. The analyst has been forced to update his forecast. Right now, he expects a revenue of about $278,000,000 and $282,000,000 in the next 2 years.

This also includes Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA) of $110 million and $115 million, respectively.

So far, Encore Boston Harbor is gaining a lot of ground in the New England region. This is a surprising improvement considering the fact that they just launched their services. This move has put TRWH, including MGM Springfield and other gambling centers in the region to sit up.

In spite of the company’s domination of the regional market, the company is struggling in a way too. There’s every possibility it will not meet the $800,000,000 in GGR for the first year of operations as expected.

Still, there is a massive doubt that Encore’s rivals will feel a lot of pressure from the casino’s capacity to attract gamblers.

For the past few months, TRWH has had it rough. Reports of table game revenue for the month of July were 34% lower when compared to how it was a year before. Table game revenue for the month of August was also 40% lower.

It is not all bad news for TRWH, it’s just a rough patch for the branch in Rhode Island. In other places like Colorado and Delaware, the company’s performance has been better.

TRWH owns Dover Downs situated in Delaware. The property, after several renovations, is on a course to earn profit for investors.

In Colorado, Arapahoe Park is performing very well. With an extra 3 properties in the state, all located in Black Hawk, the company’s performance is about to skyrocket.

With the Prop DD approval in Colorado, it has paved the way for legalized sports betting. TRWH is about to experience a surge in its financial performance.

Hud Wafiq Ganem is a gambling industry pioneer. He is the founder of and his yearly gambling industry predictions and analysis are respected and adhered to by veterans and novices alike.
© Copyright 2024
Powered by WordPress | Mercury Theme