It was another bonanza month for the Boardwalk, as casinos grossed $237.5 million in October, 17% above 2019. Slot win was up 22% on 19% more coin-in and tables won 6% on 9% higher wagering and despite lower hold. Borgata wasn’t so lucky at the tables, being down 9% yet 32% greater slot win propelled the megaresort to a 20% higher tally of $62 million, by far the highest in Atlantic City. A distant second was Hard Rock Atlantic City‘s $37.5 million, despite a 53% gain. Ocean Casino Resort accelerated 63.5% to firmly grasp third place with $30 million. The Cerberus that is Caesars Entertainment dipped 2% overall, as table win slipped 6% and slots edged 1% lower. Harrah’s Resort was 1% up, leading the CZR pack with $24 million, followed by $24.5 million, followed by Tropicana Atlantic City (-3.5%) and Caesars Atlantic City (-2.5%) with $21 million each. Resorts Atlantic City made an impressive, 20.5% gain to $14.5 million, while Bally’s Atlantic City grossed $12.5 million but slid 4.5%. That left Golden Nugget, down 3.5% to $14 million.

New Jersey giveth, New Jersey taketh away. The priority of the Lege’s lame-duck session will not be ending smoking in Atlantic City casinos but something much nearer and dearer to casino executives’ hearts: Revising the PILOT (Payment In Lieu of Taxes) program. This is the brainchild of outgoing state Senate President Stephen Sweeney (D), prompting one wag to comment, “Perhaps he hopes to get a job at a casino so he can have a third pension.” The big, juicy incentive to get Big Gaming to go along is the exemption of sports betting and i-gaming from PILOT revenue calculations, a big gimme.

The casinos’ compliance will be needed in some cases because their PILOT fees will be going way up, usually if they have been engaged in capex reinvestment. We frown upon this because it creates a fiscal disincentive to improve one’s property (slumlords like Donald Trump, in his Boardwalk days, would have loved it). For instance, Borgata would slide down from $29 million due this year to $23 million in 2025. By contrast, Hard Rock Atlantic City would be walloped with a 100% increase from $8 million to $16 million.

In hopes of having online sports betting operational in time for the Super Bowl, Empire State gaming regulators announced their picks for the state’s nine OSB license applications late yesterday. Winners were BetMGM (just as Bill Hornbuckle predicted), DraftKings, FanDuel, Caesars Sportsbook, Bally’s, Resorts World, PointsBet, WynnBet and Rush Street Interactive. Each will have to partner with a brick-and-mortar casino and pay 51% of gross gaming revenue in taxes, plus $25 million upfront, making the real winner New York State. Forbes calculates it will see a $493 million windfall by 2025. Losers were led by Barstool Sports, which missed the brass ring, a bitter pill for Penn National Gaming to swallow. Could Barstool’s brash image have been a problem? Others out in the cold are bet365 (which rashly tweeted “I will own New York”), theScore, Fanatics and FoxBet.

DraftKings divided analysts with its 3Q21 earnings report. Credit Suisse pundit Ben Chaiken said the company was “moving the ball down the field.” That’s despite revenues of $212 million that well undershot Wall Street‘s expected $238 million, rather like a downfield pass that was picked off for an interception. Chaiken blamed the shortfall on low hold on NFL games and an upswing in marketing costs. DraftKings predicts it will bring in $1.7 billion to $1.9 billion next year, not including money from states that have yet to add sports betting. The Street’s consensus is it will be $1.8 billion inclusive of new markets. Chaiken thinks that DKNG will next try to buy or build a media component, as “the next major theme in sports betting will be the emphasis on sports media, which can be used to more efficiently acquire and retain customers.” If a deal can’t be struck with ESPN, look for a purchase of The Athletic.