Safeguarding tourism interests in Florida
In the November 6 midterm election, voters in Florida passed a measure that was favorable for the Walt Disney Company (DIS). The passage of Amendment 3 makes it harder to open new casino establishments in Florida. With the passage of the ballot measure, no new casino business can open in Florida unless it receives 60% statewide voter approval.
Disney spent more than $20 million in support of the Amendment 3 initiative on the Florida ballot. The company supported the initiative in order to safeguard its tourism interests in the state. Disney runs resorts in Florida, and through these businesses, it caters to tourists visiting the state. The company viewed casino expansion in Florida as a risk to the state’s standing as a family-friendly holiday destination, leading it to support Amendment 3 to make it more difficult to set up new casinos in Florida.
Resort revenue growth accelerated
Disney generated $5.1 billion worth of revenue from its Parks and Resorts segment in the fourth quarter of fiscal 2018, which ended in September. The segment’s revenue rose 9.0% YoY (year-over-year), accelerating from the the 6.0% YoY rise it saw in the previous quarter.
Gains in Disney’s resorts business helped propel its top line 12% YoY to $14.3 billion in the quarter.
Report companies post gains
Casino and resort operators MGM Resorts International (MGM), Las Vegas Sands (LVS), and Marriott International (MAR) grew their revenues 7.1%, 6.7%, and 5.5% YoY, respectively, in the third quarter. Boyd Gaming’s (BYD) revenue rose 3.5% YoY in the quarter.