Move over, Parx Casino, there’s a new leader in the Pennsylvania gaming market. That’d be Penn National‘s eponymous racino near Harrisburg. For the second month in a row it was tops in the Keystone State, banking $64 million, up 11.5% from last year. Parx had to settle for $60.5 million, a 2% dip from 2021. On the comeback trail was Rivers Philadelphia, up 13% to $54.5 million. Valley Forge Resort was an incredibly strong fourth-place contender, soaring 40% to $52 million (remember, it’s considerably smaller than its market rivals, constrained by law), while Philadelphia Live manifested only limited signs of life: $25 million, albeit a 20% gain. It did displace Harrah’s Philadelphia, whose $19 million represented only a 2% uptick.
Other market-dominating casinos were Wind Creek Bethlehem ($47 million, +33.5%) and Rivers Pittsburgh ($35.5 million, +20%). Much further back were Mohegan Sun at Pocono Downs ($22 million, flat), Hollywood Meadows ($20.5 million, -2%), Mount Airy ($20 million, -14%) and Presque Isle Downs ($11.5 million, +11%). Then came the satellites: Pittsburgh Live ($10 million, +20%), new Hollywood York ($8 million) and Hollywood Morgantown ($5.5 million, +241%). As customary, Lady Luck Nemacolin brought up the rear with $2 million, up 3%.
Sports betting revenue improved 18% to $48.5 million … $30.5 million after promotions. Handle was $715 million. FanDuel ($22 million in winnings) and DraftKings ($7 million) were dominant, with BetMGM a respectable third ($5 million). Barstool Sports took home $3 million, less promos. “Sports books got a significant NCAA Tournament sweetener with Villanova’s run to the Final Four and a small boost from New Jersey, where betting on in-state St. Peter’s is banned,” explained PlayUSA analyst Katie Kohler. I-gaming was even stronger, bringing in $143 million, with the Penn National ($55 million) and Rush Street Gaming ($37 million) consortiums out front.
Casino revenue has “normalized” with a vengeance in Louisiana, where it’s down 10% from 2019 and 1.5% from last year, which we’ll use for comparison. Insanely high hold (14%) is to be credited with $28.5 million in sports betting revenue on only $206 million in handle. But we digress. Had casinos not faced two fewer weekend days than last year, they might have matched the March 2021 tally. In the Baton Rouge market, Hollywood Baton Rouge (pictured) slid 19% to $5 million, Belle of Baton Rouge dipped 7% to $1.5 million and L’Auberge Baton Rouge surged 25% to $19 million. Lake Charles continues to see a winning streak for L’Auberge du Lac, which posted $31.5 million, a 5% gain, while Golden Nugget rivaled it with $29.5 million, a 4% slip. Delta Downs was down even further (-7.5%), making $16 million.
New Orleans was solid across the board, led by Harrah’s New Orleans‘ $23 million (+2%). Then came Boomtown New Orleans‘ $13.5 million (+8%), Treasure Chest‘s $9 million (+2%) and Fair Grounds racino’s $4.5 million (+6%). Outlying Amelia Belle was up 5% to $3.5 million and Evangeline Downs was down 9% to $7 million. That leaves Shreveport/Bossier City, which got slammed. Not one operator was revenue-positive. Margaritaville led with $19 million (-4.5%), and then came Horseshoe Bossier City ($15.5 million, -3%) and Bally’s Shreveport ($10.5 million, -5.5%). Calamity was visited upon Sam’s Town Shreveport, spiraling -38% to $4 million, and Louisiana Downs, taking a -29% dive to $3.5 million. Boomtown Bossier closed out the scene with $5.5 million, an 8% decline.
We cannot leave Louisiana without looking into the continuing soap opera of Diamond Jacks in Shreveport. This comes from the You Just Don’t Get It, Do You file. Rather than meet its deadline to reopen, as required by law, Peninsula Pacific Entertainment is trying to weasel out on its obligation by dint of a sale to obscure Foundation Gaming. The Mississippi-based company is described as specializing in “distressed casinos.” Ouch. News of the impending deal buys Diamond Jacks until today to get things nicely wrapped up with a bow. Frankly, we don’t believe Peninsula Pacific ever intended—or lifted a finger—to reopen in Shreveport, having stripped the casino clean. We’ll see tomorrow if Peninsula Pacific comes back for an another extension (and another tongue-lashing) from already-vexed regulators. As one said, “There was no vision of really reopening this at all. And we’re disappointed in that.” Even if Foundation takes over, we’re looking at a 2024 or ’25 reopening, which is a depressing thought.
Michigan also reported sports betting and i-gaming revenue, although there was less of the former to disclose, having gone into an 8% decline (so much for March Madness). OSB operators kept $15 million and shelled out another $16 million in promotional allowances. When is OSB not going to be predicated on giving away the store? FanDuel led OSB revenue with 43%, followed by BetMGM’s 30.5%, then DraftKings in unaccustomed third place with 11%. Also-rans were Caesars Sportsbooks (7%) and Barstool Sports, barely hanging in there with 1.5%. Handle, if you care, was $478 million.
As usual, i-gaming far outperformed sports betting, generating a record gross of $132 million. BetMGM dominated with 36.5%. The rest of the market was divvied up between FanDuel (17%), DraftKings (16%), Barstool and WynnBet (4% each), and Caesars (3.5%).
While Kentucky lawmakers blew it big time on sports betting this session, it’s still alive and kicking in Maine. Cranky Gov. Janet Mills (D) is grudgingly trying to patch things up with the state’s Native American tribes by offering them an OSB monopoly, taxed at 6%. This will probably fly with the courts about as well as Ron DeSantis‘ similar compact in Florida, which crashed and burned. Throwing a bone to Maine’s private-sector casinos, Mills would allow them to conduct in-person sports betting, which isn’t worth very much. After it passed the lower chamber of the Lege, House Majority Leader Michelle Dunphy (D) managed to keep a straight face when she said, “I’m filled with the hope that I am taking one more step to bring prosperity to the people of Maine and another step alongside our neighbors … in this important journey forward.”
Meanwhile other lawmakers are trying to cut in Maine’s fractious casinos for a bigger piece of the action. State Sen. Michael Baldacci wants to give Hollywood Bangor Raceway and Oxford Casino Hotel OSB as well as walk-up betting, a proposition that doesn’t sit well with the tribes, despite Baldacci’s assurances that he wants a “win-win” for everybody. “This was a negotiated bill with the Governor’s office, and we tried to be as inclusive as possible. This amendment will basically render the bill meaningless for the tribes,” groused Penobscot Nation Chief Kirk Francis. Regardless of who prevails, sports betting is expected to be small potatoes for the state, bringing in less than $7 million in taxes per year. “This is not going to be a big one for us,” Maine Gambling Control Unit Executive Director Milton Champion said. “A lot of the casinos really describe it as no more than an amenity, like putting in a good buffet.”
Our East Coast bureau reports that American Airlines has a big plan for the Atlantic City airport, namely a new transportation hub: “Landline will put passengers bound for Philadelphia through security and check their baggage, and will then transport them and their bags directly to PHL, with direct boarding when they get there. Buses will leave three times daily from ACY. American Airlines also plans to do the same thing from ABE (Allentown-Bethlehem-Easton) airport. It makes sense as the Atlantic City airport has only one scheduled airline, Spirit Airlines, and some casino charters (I think Spirit Airlines’ motto is “we take off when the spirit moves us.”) The Atlantic City airport has the TSA security and other people not doing very much most days. In the Philly airport, parking has been ‘at capacity’ for several weeks, so it seems like a win/win situation for American Airlines passengers.”
Jottings: Chief Executive Ho Iat Seng had bad news for casino operators, calling for stricter enforcement of gaming regulations, saying Macao would “find itself on a narrower and narrower road” as far as tolerance from Peking was concerned if reforms were not made. “We need to become an international tourism and leisure destination, not a Chinese destination,” he added … “The Australian casino business is a dreadful example for anyone running a casino anywhere else in the world,” said one casino expert, as the question is raised of whether Down Under casinos have become too big to be policed. Latest in the spotlight is Crown Melbourne, which could be fined $100 million for letting a high-roller gamble $11 million on his Union Pay card, a strict no-no … Could the Kansas City Chiefs up and move to Kansas if the Missouri Lege doesn’t legalize sports betting? That’s the latest scuttlebutt … Cordish Gaming‘s losing streak continues, as a flimsy lawsuit got tossed by a Virginia judge. Cordish had an “agreement to agree” with the City of Norfolk to build a casino, a gig that ultimately went to the Pamunkey Tribe. Judge Bradley Cavedo essentially ruled that said agreement wasn’t worth the paper on which it was written … There’s a class-action lawsuit brewing at Twin River Casino in Rhode Island, where a growing number of employees accuse Bally’s Corp. of shorting them on overtime pay. Bally’s is also accused of paying a base salary of $2.13 an hour while telling the IRS it was $5.12. Oops. Bally’s better hope Lori Lightfoot doesn’t get wind of this.
Quote of the Day: “We keep hearing, ‘Now is not the time.’ When is it going to be the right time to care about us?”—Borgata dealer Nicola Vitola, on attempts to repeal smoking in Atlantic City casinos.