A.C.: A month to forget; Trump sticks it to Miami

Casino revenue headed 32% south in Atlantic City last month, to $148 million. Those were augmented with $46 million in sports-betting dollars and $94 million from Internet gambling (+80%), so that probably counts as a silver lining to a dark cloud. This Friday’s increase of capacity limits from 35% to 50% is expected to boost casino revenues. February slot winnings were -31.5% and table win -34%. Borgata had a terrible month at the slots, -45%, while its table-game winnings were 36% downward. Quarter-to-date, Borgata is tracking over twice as badly as JP Morgan analyst Joseph Greff projected. The Caesars Entertainment threesome fared even worse, down 40%, pretty evenly divided between slots and tables. Harrah’s Resort performed most weakly, falling 43% to $15 million, while Caesars Atlantic City was -37% to $13 million and Tropicana Atlantic City tumbled 38.5% to a Caesars-best $16 million.

Nobody was revenue-positive but Hard Rock Atlantic City came closest, off 2% to $23.5 million, while Ocean Casino Resort slipped 9% to $19 million. Bringing up the rear was Bally’s $7 million (-42%), while Golden Nugget and Resorts Atlantic City both grossed $9 million, down 45.% and 38% respectively. The surprise Super Bowl outcome was good for the sports books and handle was up 51% year/year to $743 million, with $117.5 million of that bet on the Super Bowl. FanDuel led market share with 53% (and $24 million in revenue), distantly followed by DraftKings‘ 17% ($7.5 million), BetMGM‘s 11% ($5 million) and William Hill‘s 7% ($3.5 million). Internet-casino play was led by BetMGM’s $26 million (27% market share), then Caesars/WynnBet‘s $15 million, DraftKings’ $13 million (14% share) and Golden Nugget Online‘s $9 million (10%). Credit Suisse analyst Ben Chaiken wrote that the i-gaming revs were “in line with our estimate” and sports book hold was “soft.” (His raw figures and Greff’s did not concur—that way lies madness.)

Warned PlayUSA analyst Dustin Gouker, “February’s results are a reminder, though, that New Jersey’s market is not destined for infinite growth. For the first time since Pennsylvania launched, New Jersey could face increased competition. This time it’s from New York, its main feeder market, which is pushing ahead on legalization efforts. While that is cause for concern in New Jersey, the state’s online sportsbooks and casinos have positioned themselves as a giant in the industry, able to withstand neighborly competition.” Since punters weren’t returning to brick-and-mortar casinos, the sequential dip in Internet win (January yielded $104 million) is a bit of a puzzlement. Still, it’s been a bonanza for the Garden State: $501.5 million in taxes since inception.

Across the river in Pennsylvania, gross gaming revenues tripped -27%, for a $203 million gross. Slots tallied $145.5 million and tables $57.5 million. Sports betting provided $33 million in gross revenues but $17 million of that went right out the door again in promotions, leaving $16 million in the kitty, compared to January’s $34 million. Handle was $509.5 million. Internet casinos won $78 million. In the last category, Hollywood Casino grossed $28 million (36%), while Rush Street Interactive made $18 million (23% share) and FanDuel had $15.5m for 20% share. FoxBet gained $7 million for $9 million. Mount Airy‘s i-poker monopoly was good for $2.5 million. Overall, online slots grossed $51 million and i-tables $25 million.

In the greater Philadelphia market, Live Philadelphia showed signs of life with $15.5 million but Parx Casino was still dominant with a state-best $41 million (-25%), as Harrah’s Philadelphia slid 39.5% to $13 million, Rivers Philadelphia plunged 53% to $14 million and Valley Forge Resort shed 34% to $8.5 million. Live may be a category killer for most Philly casinos but is looking a long, long way up at Parx. Around Pittsburgh, the new Live Pittsburgh grossed $6 million, while Rivers Casino made $20.5 million (-39%) and The Meadows banked $11 million (-38.5%). Give it a good month and Live could make some serious inroads. Outstate, Wind Creek Bethlehem was tops with $26 million (-31%) and Mohegan Sun Pocono Downs stumbled 35.5% to $13 million. Presque Isle Downs plunged 33% to $7 million, Hollywood Penn National sloughed off 29% to $15 million and Mount Airy was down 24.5% to $11 million. That leaves Lady Luck Nemacolin, -48% to $1.5 million.

That bad news for Pennsylvania (what, there’s more?) was that it slid behind Michigan for Internet-gambling revenue, to third place in the U.S. Super Bowl handle was $53.5 million, as everybody continues to look forward to March Madness and hopes of better times. In overall handle, FanDuel/Valley Forge was tops with $176 million, seconded at $112 million by DraftKings/The Meadows. While most books suffered by comparison with January, Barstool Sports almost matched that month’s handle of $65.5 million, overcoming our initial skepticism about this upstart. It also ranked second in revenue ($5 million). Also-rans in handle were BetMGM/Hollywood Morgantown ($34 million), BetRivers/Rivers-Pittsburgh ($20.5 million), Parx ($18 million), PlaySugarHouse/Rivers-Philadelphia ($14.5 million), Unibet/Mohegan Sun Pocono ($7.5 million), Betfred/Wind Creek ($2 million), and BetAmerica/Presque Isle Downs and Caesars/Harrah’s duking it out for last place with $1 million each. One would expect better things from CZR. Rivers Philadelphia had the most popular walk-up sports book, with $8 million in handle.

Casinos are presently capped in Florida but Donald Trump never let a trifle like a constitution stand in his way. Spawn Eric Trump is confabulating with Gov. Ron DeSantis (R) to turn the Doral resort into a gambling destination. Pet lawmakers in Tallahassee are crafting a bill to do just that. Reports MSN, “The bill would allow developers to transfer gambling licenses to properties in areas where casinos have long been prohibited and bar local municipal governments from intervening,” in a big screw-you to communities that might not want a casino on their doorstep. Said Miami Beach Mayor Dan Gelber (D), no fan of gambling, “My understanding is they are trying to take the gambling permits that are in South Florida and make them portable and preempt local governments from stopping them.” Thanks to Covid-19 and the Trump clan’s toxic public image, Doral has been suffering, down 44% in revenue.

The Rx? Slots and table games. The Donald has been trying to bring a casino to Doral for nine years. “Many people consider Trump Doral to be unmatched from a gaming perspective — at 700 acres, properties just don’t exist of that size and quality in South Florida, let alone in the heart of Miami,” wrote the younger Trump. Opposition to the nascent law is already bipartisan, with GOP-aligned real estate developer Armando Codina (a Doral neighbor) complaining that the Lege’s talks “have happened in a dark room.” He added, “We’ve created a venue that is a family venue. If this was to happen in Doral, we would over time probably sell a bunch of our interests.” Of course, if gaming upped Doral’s depleted value, that would probably be a good thing for Covina’s sale prices. And if the Lege should sign off on gaming expansion, it’s certain to be met in court by the Seminole Tribe and Disney Worldwide. Proponents hope to buy off the Seminoles by juicing them into the lion’s share of sports betting, which would also be legalized.

Trump’s not the only one in the hunt, however. Jeffrey Soffer, who has renewed his Las Vegas ambitions too, is pushing to enable gaming at his fabled Fontainebleau resort. “You could move a casino to the Fontainebleau the next day with 1,500 machines” said an MSN source. Genting Group, which is saddled with expensive, waterfront real estate in Miami, could also see a chance to recoup its fortunes. Nobody in the casino derby has a stellar success record, Trump least of all. As state Rep. Joseph Geller (D) asked, “This guy has bankrupted every casino he’s ever run. How do you bankrupt a casino?” Don’t sell Trump short. He didn’t bankrupt a casino once. He did it three times.