Atlantic City, Watch Out

It was a signal December for Atlantic City casinos, in that Garden State residents preferred to stay home and play on the Web, rather than in the cozy (and smoke-ridden) confines of the Boardwalk. Gambling-hall revenues plunged 6.5% as the casinos suffered dreadful luck at the tables. Wagering was up 10% but Big Gaming won 11% less. Slots slumped 5%.

Only Ocean Casino Resort was revenue-positive, up 6.5% to $37 million. CEO Bill Callahan is clearly doing something right in a city whose business model is so very 1959. Worst off was Tropicana Atlantic City, plummeting 22% to $15.5 million. Last place went—need we say it?—to Bally’s Atlantic City, down 8.5% to $9 million. Golden Nugget Atlantic City grossed more ($10 million) but at the price of a 10.5% dropoff. The whole Caesars Entertainment threesome got walloped. Harrah’s Resort fell 17% to $16 million and Caesars Atlantic City dove 16% to $16 million as well. Will Caesars ever admit it misjudged the market and is overexposed? Probably not. Borgata shrugged off a 4% slippage for $60 million and Hard Rock Atlantic City brought home $40.5 million, albeit down 5.5%. That left Resorts Atlantic City, only 3% off the pace for $12 million.

iGaming dwarfed terrestrial gambling, $273 million to $216 million. FanDuel ($63 million) and DraftKings ($61.5 million) elbowed past legacy operator BetMGM ($60 million). Others in contention were Caesars Palace Online ($22 million), Fanatics ($13 million), BetRivers ($9.5 million) and Hollywood Casino ($3 million). FanDuel was well out in front on sports wagering with $51.5 million. Trailing it were DraftKings ($34 million) and then—waaaaay back—BetMGM ($9 million), Caesars Sportsbook ($4.5 million), Fanatics ($4 million), theScore ($2.5 million) and BetRivers ($1.5 million). Books grossed $116 million off handle of $1.1 billion for a nice 12% hold.

Anyone remember defunct, half-demolished Trump Plaza? We barely do. Our Atlantic City correspondent writes, “the Plaza has been for sale since September. It has 300 feet of Boardwalk frontage and sits on 10.2 acres of land. The real estate agent won’t disclose the price, except to ‘qualified investors’ who sign a confidentiality agreement. ‘Uncle Carl’ bought the Plaza for $3 million in 2018. The current sale includes a former hotel tower, the parking garage still used by Boardwalk Hall for their events, a small building where the Rain Forest Cafe is located (lease expires 12/28) and some vacant land.” Sic transit gloria Icahn. By the way, could signing the confidentiality agreement be what qualifies you to be a buyer of these remnants?

Even more forgotten than Trump Plaza would be flibbertygibbet casino investor Glenn Straub, who briefly owned Ocean Casino back when it was still Revel. According to our man on the Boardwalk, Straub is actually still making money off the place, smart man. Seems that old Glenn got 99 years’ worth of parking fees guaranteed when he sold Revel to Bruce Deifik. (We swear we’re not making this up.) He didn’t get anything in years one and two of the deal, but afterward … “Years three through six are $3.50 per car, and $4.50 per car starting 2027. Ocean Casino paid one fee per hotel stay, regardless of how many times the guests left and re-entered the garage. Straub sued Ocean Casino for the difference. An exception is made for employees, vendors, and, if a condo is built, the owners won’t pay any fee. Revel Casino’s original plan was for two towers, not one.” And pigs will fly before condos are built at Ocean.

Driven mostly by new product, casinos in Louisiana leapt 10% last month. On a same-store basis, the news was still very good: up 4%. Brand-new Bally’s Baton Rouge obliterated the numbers of ancient Belle of Baton Rouge: +481% to $4 million. Miraculously, everyone in Baton Rouge was up, with L’Auberge Baton Rouge gaining 2% to $14 million and The Queen Casino hopping 2.5% to $7.5 million. In the Shreveport/Bossier City market it was a banner month for Horseshoe Bossier City, which reclaimed the #1 spot with $14 million (7%), charging past Margaritaville ($13.5 million, -14.5%) and newcomer Louisiana Live ($12 million). Nobody else gained ground: Boomtown Bossier ($3 million, -16%), Sam’s Town ($2.5 million, -17.5%), Bally’s Shreveport ($8 million, -14.5%) nor Louisiana Downs ($3 million, -7%).

The Crescent City was simularly bifurcated. Caesars New Orleans jumped 12.5% to $28.5 million and Treasure Chest was up 7% to $13 million. But Boomtown New Orleans slipped 11% to $8.5 million and Fair Grounds racino slid 7% to $3 million. In Lake Charles, both Golden Nugget Lake Charles ($29 million) and L’Auberge du Lac (pictured, $28 million, 10% enjoyed superior months. As in Baton Rouge, everyone was revenue-positive: Delta Downs ($14 million, 7.5%) and Horseshoe Lake Charles ($7.5 million, 8.5%) alike. Amelia Belle, out in the sticks, was up 2% to $3 million, and similarly rural Evangeline Downs was flat at $6.5 million.

Gridiron Grumbles: There’s not much to be said about last night’s upset of the Chicago Bears by the Los Angeles Rams. Well, except that NBC Sports “analyst” Cris Collinsworth‘s incessant slurping of Bears QB Caleb Williams was beyond endurance. Fortunately, NBC is rumored to be contemplating a complete overhaul of egregious Football Night in America during the offseason. They can sack the whole lot of them (except for Jason Garrett) as far as we’re concerned, especially DraftKings pimp Matthew Berry, who appears to serve no other purpose.

Meanwhile, with a little help from the officials (three questionable calls) and a lot of help from the self-destructive Buffalo Bills, the Denver Broncos eked out a Pyrrhic victory. It cost them Bo Nix and they limp into the conference championship on the legs and arm of ex-Las Vegas Raider QB Jarrett Stidham, who played not badly for the Silver & Black in two starts. Will he become the latest in a long line of Vegas Raiders who are now prospering with other, non-dysfunctional organizations? Tune in Sunday. As for the Bills, they never looked like Super Bowl material this season but the precipitate firing of coach Sean McDermott seems an overreaction. Here’s hoping the Pittsburgh Steelers snap him up.