Then there were seven … again. In a stunning reversal of fortune, Caesars Entertainment‘s plans for a Times Square casino have been ashcanned by the relevant Community Advisory Committee. The casino proposal had bitterly divided the Broadway community and was recently panned for its hostility toward pedestrians and bus passengers. Since the latter (plus subway commuters) were supposed to constitute 75% of the customer base, the behavior of Caesars and SL Green was perverse, to say the least, not least for a casino that projected a preposterous $2.3 billion a year in gambling revenue but was polling at anemic levels. “Despite extensive outreach by the applicants, that [necessary] level of support has not materialized,” said Councilman Erik Bottcher, who cast one of the ‘no’ votes.
Thanks for playing, Jay-Z Carter (Mr. Beyoncé to most of us) and Rev. Al Sharpton, with the latter indulging in blatant race-baiting after the vote. Don’t let the doorknob hit you on the way out, preacher. Caesars’ was hardly the best of the New York City casino proposals, but we expected the CAC to pass the buck up to Albany. No such luck. Caesars hit the canvas, 4-2. It’s a TKO for IATSE, The Broadway League and the Shubert Organization, all of whom lobbied hard against a casino amidst the theatre district.
In case you missed it, Caesars’ somewhat cockamamie plan was to crown the Minskoff Theater (home to The Lion King) with a toupée in the form of a megaresort inside a former office tower. It was an interesting way to tackle Manhattan‘s lack of elbow room but it was ultimately judged an intrusion, possibly not helped by some last-minute, anonymous dirty tricks against the Shuberts.
Caesars shareholders seemed relieved by the news, as the stock ticked up a percentage point. SL Green shares, however, fell 7.5%. The former is now 0-2 in New York State, having been passed over for an outlying casino several years back, due to then-CEO Gary Loveman having driven the company into a ditch. Almost all other NYC casino contenders’ chances now improve by default, especially Resorts World New York City, which is enjoying across-the-board community support. By contrast, odds for The Coney look very bleak indeed, given the intense local opposition it has engendered.
The Avenir also had reason to be worried, as Manhattan Borough President Mark Levine has already signaled a ‘nay’ on that project. Mayor Eric Adams (I) and Gov. Kathy Hochul (D) both found themselves on the losing side of the Caesars battle, and will face still more resistance from Manhattanites. The ultimate loser, however, was SL Green prexy Marc Holliday, who threw a tantrum, yelling at CAC members that the vote was “a despicable display of cowardice, lack of leadership, lack of consideration for all the people who would benefit from this proposal. The benefits you denied this community and this city and state—you have to live with that history forever.” Don’t let that doorknob hit you either, Marc.
THIS JUST IN … Then there were six. The Avenir has also been nixed by its CAC. This is a developing story and we will have more later. Too bad—we liked that proposal.
Everybody but the grind joints had reason to celebrate last month, as Atlantic City casino grosses trended up 6% to $312 million. Of course Borgata was out front with with $80 million (8%), followed by Hard Rock Atlantic City‘s $58 million (5%) and Ocean Casino Resort, closing hard on Hard Rock with $51 million (16%). Caesars Entertainment, having gotten the boot in New York City, will need to regroup and maximize its Boardwalk assets. As it is, they were all revenue-positive in August, led by Harrah’s Resort ($26.5 million, 5.5%) and Tropicana Atlantic City ($26 million, 4%), with Caesars Atlantic City bringing up the rear ($25 million, 3%). Resorts Atlantic City was flat at $16 million but bested the Golden Nugget ($14.5 million, -1%) and Bally’s Atlantic City ($14.5 million, -7.5%), which has been bleeding red ink all year.
Although Fanatics overall saw 73% less Web traffic last month, it had a good iGaming August in New Jersey. Its i-casino gross was $10 million, besting BetRivers ($8 million) and Hollywood Casino ($3 million). Market leaders were FanDuel ($58 million) and DraftKings ($57 million), kicking dirt in the face of legacy operator BetMGM ($53 million). That being said, Leo the Lion vastly outperformed Caesars Palace Online ($21 million). Sports betting winnings spiked 31% (iGaming was up 25%), with FanDuel again besting DraftKings, $33 million to $28 million. BetMGM ($8 million) elbowed aside Caesars Sportsbook ($4 million), as well as BetRivers ($1 million) and ESPN Bet ($2.5 million). Fanatics needed that solid month of iGaming as it absolutely took a bath on OSB, losing $4 million. Ouch!
As customers continue to stay home from Las Vegas, regional grosses still pop. Indiana was up 2.5% last month. It wasn’t the most dramatic Midwest result but it’s a positive augury just the same, for a total haul of $220 million. Hard Rock Northern Indiana felt the pinch of competition (-5%) but reeled in $36 million. Gosh knows what sort of promotional activity Horseshoe Hammond unleashed but it catapulted 32% to $27 million and third place. It was bettered only by Hard Rock and Horseshoe Indianapolis, which grossed $29 million in a 10.5% leap. Ameristar East Chicago sagged 9% to $13.5 million while Blue Chip dipped 3% to $11 million.
Harrah’s Hoosier Park hopped 5% to $22.5 million as tribal Caesars Southern Indiana slid 7% to $21.5 million. Belterra Resort was up a point to $8.5 million, Bally’s Evansville gained 2% to $15 million and French Lick Resort was flat at $7 million. Rising Star faded a point to $3.5 million, Hollywood Lawrenceburg sagged 6.5% to $12.5 million whilst Terre Haute Casino rounded out the picture with $12 million (+5%). In terms of sports betting, DraftKings zoomed past FanDuel, $17.5 million to $14 million, while BetMGM reported $3 million and Caesars Sportsbook scraped together $2.5 million. BetRivers and Bet365 combined at French Lick for $2 million, and ESPN Bet did the best of the also-rans with $4 million. BallyBet and Smarkets barely made a ripple.
To end on an upbeat, casinos are making property-tax relief possible for residents of Nebraska. Their tax revenues helped contribute $20 million in rebates to Cornhusker State voters. Clay Ricketts can put that it in his anti-gambling pipe and smoke it.