🍋 Economics of Losing Big in Vegas

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Good Morning! Looks like more trouble for crypto winter ahead with the SEC throwing down the gauntlet at Binance, suing the exchange for its ‘web of deception.’ Looking for a wild reason to return-to-office? Some firms are offering ketamine retreats as an unconventional team bonding activity.

Apple unveiled its first new major product in a decade with its $3,499 VR headset - you can dive deeper by reading some of our insights here (& check out Apple exclusive memes below). Nike’s co-founder Phil Knight keeps trying to buy the NBA’s Portland Trailblazers, only to be relentlessly turned down by the team’s owner, the estate of Microsoft's co-founder Paul Allen.

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1. Story of the Day: The Economics of Losing Big in Vegas

It turns out even Vegas is feeling the inflation pinch. And the city’s casinos are figuring out ways to hedge against an economic downturn, from making it more expensive to play, or even harder to win.

Take Blackjack, for example, a favorite game of Casino-goers. Last year, players in Las Vegas collectively lost a staggering $1 billion, marking the highest loss since 2007. A key reason for the record losses? Casinos slashed the number of tables available for gameplay and raised the minimum betting requirements.

Casinos are trying to maximize profits as high inflation and recession concerns remain forefront to most American’s minds. But there’s another reason why Vegas is raking in record profits - the city’s trying to shake its perception problem.

Vegas wants to become more of an upscale destination, rather than just being seen as a cheesy spot to gamble. And so far, the efforts are bearing fruit. Vegas casinos have seen a remarkable 25% increase in revenue from pre-pandemic levels, amounting to a staggering $8.3 billion.

Takeaway: You know the old phrase, “the house always wins.” But sometimes we forget exactly why that’s the case - casinos are businesses, too. They are driven by the same motivation as any other enterprise: the pursuit of profitability and shareholder value.

2. Markets Rundown

Stocks closed lower after hitting a nine-month high.

Movers & Shakers

• (+) Amedisys ($AMED) +15% after the company received an unsolicited buyout offer from Optum.

• (+) ImmunoGen ($IMGN) +7% after positive results from the company’s ovarian cancer treatment.

• (–) Coinbase ($COIN) -9% after the SEC sued Binance.

Private Dealmaking

• KKR bought Circor, an industrial flow control products maker, for $1.6 billion

• Fabrick, an embedded finance startup, raised $43 million

• Swing Education, a marketplace that connects schools with substitute teachers, raised $38 million

• Debut, a synthetic biology startup, raised $34 million

• Prime Roots, a plant-based meats provider, raised $30 million

• Ariga, a database management startup, raised $18 million

A Message from Oceans XYZ: Great Talent Creates a Ripple Effect

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3. Top Reads

• UBS expects to seal Credit Suisse takeover as early as June 12 (CNBC)

• Veteran hedge fund manager warns of insane startup costs (BB)

• Cava sets IPO terms, could be valued at $2 billion (Axios)

• Why you shouldn’t store cash on Venmo or PayPal (CNN)

• Blackstone made billions in real estate bet on urban warehouses (BB)

• Here’s everything Apple announced Monday (CNBC)

• How startup cloud costs lost control (TC)

• Italy is a bargain for Americans vacationing (CNBC)

• Don’t look now, but stocks may have some momentum (Axios)

• Why College grads are fleeing superstar coastal cities (YF)

• American Airlines’ plan to reinvent business travel (WSJ)

4. Book of the Day: Platform Thinking

Digital platforms like Uber, Spotify, Airbnb, Booking.com, and many others completely re-shaped the daily life of millions of users. However, many innovation leaders struggle to conceive the significance of their impact.

Platform-based business models are not just the real of geeks’ startups, digital services, and Unicorns. This book shows there that their potential in creating value is higher than suspected.

Even though platform ecosystems are complex, readers will take on a journey to become platform thinkers.

Their eyes will be trained to look beyond what’s visible and start reading the platform world around them. Then, they will be guided into a step-by-step process and learn how to write a new platform model from scratch.

This book is the result of a decade of research. It offers both a framework and practical instruments to champion digital transformation in any organization.

It is specially intended for those who are interested in the glittering platform world and are still trying to figure it out.

“What does platform thinking mean? It is the ability to put platform-based mechanisms at the core of digital business transformations in business.”

5. Short Squeez Picks

• How to hire a rockstar for your private party

• To be successful in business, you have to take care of yourself first

• Morgan Housel on expectations debt

• This 77 square-foot NYC apartment rented for $2,350/month

• How positive body language improves your public speaking

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6. Daily Visual: CMBS Office Delinquency Rate

_{Source: Axios}

7. Daily Acumen

Embrace change as an inevitable and essential part of life's journey.

Develop adaptability and flexibility as you navigate the ever-evolving world around you.

Embracing change opens doors to new opportunities, personal growth, and expanded horizons.

Rather than resisting change, find the courage to embrace it, trusting that each transition holds the potential for positive transformation.

By embracing change with an open mind and a willingness to adapt, you can thrive in an ever-changing world and seize new possibilities that lead to your personal and professional fulfillment.

8. Job Board

Looking to switch jobs? Check out our Job Board, that includes curated jobs from Wall Street to Silicon Valley.

9. Memes of the Day

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