Atlantic City & other distractions

Expect many cries of anguish and much rending of garments from Big Gaming over the September casino grosses from Atlantic City. To hear them tell it, the Boardwalk is going to dry up and blow away any minute now. What’s the latest provocation? Last month’s tally of $230.5 million was 6.5% down from last year—but 3% higher than pre-pandemic 2019. And there was one weekend less than last year, which ought to soften the blow. iGaming, meanwhile, was a bonanza, leaping 27% year/year.

Only one casino was revenue-positive and that was Borgata, jumping 15% to $62.5 million. Something was seriously wrong at Ocean Casino Resort, however, which plunged 28% to $28.5 million. So much for CEO Bill Callahan‘s delusional ambition to be the top casino boss in town. Hard Rock Atlantic City, meanwhile, was off 5% to $44.5 million. The Caesars Entertainment threesome had some of the more adverse results in town, save for Caesars Atlantic City, which was down just 4% to $20.5 million. Harrah’s Resort tumbled 16% to $18.5 million and Tropicana Atlantic City also toppled 16% to $18 million. Sometimes big is not more. As for the grind joints, it’s a mystery why General Manager Michael Monty was kicked out of Bally’s Atlantic City, given that a $12.5 million gross (-4.5%) was good enough to keep the joint out of last place. Bringing up the rear was Golden Nugget at $11 million. That left Resorts Atlantic City (-4%) whose $14.5 million tally was enough to put it within shouting distance of Caesars’ mid-market stratum.

iGaming raked in another $208 million, with DraftKings‘ $54.5 million leading the tote board. Next up were FanDuel and BetMGM with $46.5 million each, then Caesars Palace Online with $17 million. The only other operators of consequence were BetRivers ($6.5 million) and Hollywood Casino ($2.5 million). Handle was down for sports betting but books held at 11%, ameliorating the damage with a $119.5 million gross. This time FanDuel was tops with $49 millon, seconded by DraftKings’ $36.5 million. Much further back were BetMGM ($9 million), Caesars Sportsbook ($4 million), and Fanatics and ESPN Bet at $2.5 million apiece.

Next door to Atlantic City, in Pennsylvania, news of a regrettable sort was made by Rivers Philadelphia this week when a fatal shooting took place right across the street from the former SugarHouse. Like the place could use more adversity. Saturation continues to take its attritional toll on the Keystone State, with the $270.5 million overall gross being down 1.5% from last year and 13% from 2019 on a same-store basis. Unfortunately, due to a technical malfunction at J.P. Morgan, we only have a smattering of individual-property results, including the dire news that Harrah’s Philadelphia ($10 million, -11%) has lost fully half its business since 2019. Boyd Gaming‘s smaller Valley Forge Resort, meanwhile, ceded 4% but outgrossed Harrah’s with $11 million. Penn Entertainment‘s clutch of casinos and racinos was a mixed bag: The Meadows up 12% ($16 million), Penn National up 1.5% ($13 million), Hollywood York down 6% ($7.5 million) and Hollywood Morgantown up 3% ($5.5 million). That’s all we know.

Pennsylvania iGaming delivered $176.5 million (+11%), dominated by Hollywood Casino‘s $67 million. Runners up were FanDuel ($47 million) and BetRivers ($31.5 million). Sports betting saw books win $53.5 million (a +118% moonshot) on handle of $811 million. However, books gave away the store in the $42 million in promos. FanDuel generated the most handle (40%), trailed by DraftKings (29%), BetMGM, BetRivers, ESPN Bet and Caesars Sportsbook.

Low hold killed sports books in Illinois in August. Holding at 6.5% effectively negated a 30% surge in handle. DraftKings ate into FanDuel‘s handle share, with a statewide-best $22.5 million to FanDuel’s $21.5 million in revenue. Trailing the two giants were BetRivers ($4.5 million), Fanatics ($3.5 million), ESPN Bet ($2 million), Caesars Sportsbook ($2 million) and BetMGM ($2 million). If there’s a story here, it’s Fanatics’ ability to trump theoretically superior ESPN in the brand-loyalty department.

iGaming remained huge in Michigan, up 22% this past month, for $202.5 million. BetMGM clung to first place with $53.5 million, as it ought to considering its huge advertising spend in the state. FanDuel and DraftKings were close behind with $49 million and $47.5 million respectively. Then came Horseshoe Casino ($15 million), one of the confusing plethora of Caesars Digital brands, then BetRivers with $12 million. OSB yielded $58.5 million (+33%) on handle of $502 million, led by a surging FanDuel ($24.5 million). Then came DraftKings ($17.5 million) and BetMGM ($9 million). Scrabbling for crumbs were ESPN Bet and Caesars Sportsbook ($1 million apiece), while neither BetRivers nor Fanatics made more than a few dollars each. Promotional outlays, however, sapped most of the prosperity, with $31 million going back to players.

Casino grosses slipped a bit in Massachusetts, where they were 2% down from last year at this time but 14.5% up 2019 levels. Of course Encore Boston Harbor was in first with $57.5 million (-4%), while MGM Springfield managed a victory of sorts by being flat at $21 million despite a poor month at the tables. Plainridge Park continued its improbable comeback, up 2% to $13.5 million and undoubtedly feasting off Bally’s Corp.’s misfortunes in Rhode Island nearby. Sports betting handle of $667.5 million translated into $149.5 million of revenue. The homeboys at DraftKings were way out front with $77 million. They were trailed by FanDuel ($46.5 million), BetMGM ($11 million), Fanatics ($6 million), ESPN Bet ($5 million) and Caesars Sportbook ($3 million). How much longer Caesars can post these lackluster results and call them victory remains to be seen.

Even a dead-cat bounce continues to elude woebegone Louisiana, down 8% from last year and 7.5% from 2019 with a $170 million gross. One headline item of the positive sort is the Boyd Gaming has already increased its market share 75% in the New Orleans area with its new Treasure Chest casino, replacing an outmoded riverboat. Last month’s gross there was $11 million (+65%), while in-flux Harrah’s New Orleans slipped 6% to $52.5 million. Other Big Easy casinos suffered more from Treasure Chest ($7 million, -17.5%), Fair Grounds racino ($9 million, -8%) and even Boyd’s own Amelia Belle ($2 million, -16.5%). Outlying Evangeline Downs was down 4% to $5.5 million). Almost completely nonexistent was business for Belle of Baton Rouge: $100K or -89%. How do they keep the lights on? Queen Casino had a rare off month, down 8% to $6.5 million while L’Auberge Baton Rouge slipped 6% to $12 million.

Lake Charles remained far and away the top market, yielding $67 million. Thank God for Texas politicians too prudish to permit casinos in the Lone Star State. Despite a 5% slippage, Golden Nugget regained the top spot with $24.5 million, surpassing L’Auberge du Lac‘s $23 million (-13%). Horseshoe Lake Charles ceded only a point but remained a dead duck with just $7 million, while Delta Downs was down 3% to $12.5 million. The crowded Shreveport/Bossier City market saw one aberrant month of supremacy by Horseshoe Bossier City ($8 million, -22.5%) end as customary leader Margaritaville ($14 million, -5%) returned to first place. Other than Bally’s Shreveport ($7 million, -11%), nobody grossed more than $3 million. That goes for Boomtown Bossier (-15%), Sam’s Town (-13.5%) and Louisiana Downs (+2%), the latter continuing to outperform its Fall of the Roman Empire days.