OK, so sports betting got walloped. Other than that, Atlantic City had nothing to complain about last month. January casino revenues hit $210 million, 2% better than the year before and 18.5% higher than in 2019. Evidently Covid-19 sharpened gamblers’ appreciation for the Boardwalk. iGaming actually outstripped brick-and-mortar casinos with $221.5 million. Are we starting to see a day when iGaming will be so ubiquitous and prosperous that land-based casinos become glorious (expensive) anachronisms? We sure hope not … but take nothing for granted.
There were some pretty clear haves and have nots on the Boardwalk last month and the have-nots were the grind joints. Bally’s Atlantic City slipped 4% to solidify its grip on last place with $9.5 million. Golden Nugget fell harder (-9%) but arrested its fall at $10 million, while Resorts Atlantic City dipped 2% to $10.5 million. Skidding toward grind-joint levels of business was Caesars Atlantic City, which plunged 11.5% to an anemic $13.5 million. Not a good day for the Roman Empire.
Things were happier at Harrah’s Resort though ($17 million, +7%), to say nothing of Tropicana Atlantic City ($15 million, +13%), so Caesars Entertainment‘s middle-market business came through for it. Borgata hopped 4.5% to $60.5 million, proving again that the rich just keep getting richer—like you need any reminding these days. Ocean Casino Resort zoomed 6.5% higher, to close the gap with Hard Rock Atlantic City as it grossed $35 million. Not that Hard Rock was ailing, being up 2% to $38 million.
Amongst the cyber-casinos, BetMGM had to settle for second place and $52.5 million, bunched between DraftKings ($54.5 million) and FanDuel ($51 million). Caesars Palace Online generated a respectable $19.5 million. Perhaps punters decided to take their winnings and go home but, whatever the case, OSB was ailing last month. Despite 10.5% hold, handle plummeted 34% to $1.1 billion, resulting in a wan, 29% less $118.5 million in win for the books. FanDuel easily bested DraftKings, $53 million to $35.5 million, whilst BetMGM took home $8.5 million. Close behind at $7 million was Fanatics, followed by Caesars Sportsbook at $4 million and ESPN Bet at $2 million. BetRivers brought up the rear with $1 million.
We’ve heard of tax greed but this is daffy. Colombia‘s president, Gustav Petro, used the excuse of border incursions from Venezuela to make a grab for iGaming money. Declaring a state of emergency (and thus giving himself freedom to rule by executive order), Petro slapped a 19% value-added tax on all deposits for iGaming in the country. The nation’s supreme court can give Petro as much as six months of free rein on this ridiculous, anti-gaming policy, even if it finds his money scavenging unconstitutional.
Fortunately for Petro, greed cuts both ways and Rush Street Interactive is highly unlikely to leave the country in a principled huff. Indeed, the tax raid is likelier to pick off some of RSI’s competitors. Besides, even if RSI ate the tax increase on behalf of its players—like that’s gonna happen—it wouldn’t lose more than 2.5% of its revenue. Players, meanwhile, are innocent bystanders in one of the strangest trade wars in recent history.
JOTTINGS: Today, the American Gaming Association and President Bill Miller held their annual “State of the Industry” event. Or would that be “non-event”? We ask because the main presentation was followed by a singularly uninformative Q&A with the press. Miller & Co. bobbed, weaved and ducked—we haven’t seen this much rope-a-dope since the Rumble in the Jungle. If you’re not prepared to answer tough questions, Bill, don’t hold a friggin’ Q&A, cool? … Thailand doesn’t even have casinos yet and it’s already cutting them off at the knees. Thais would have to deposit $1.5 million with the casino in order to play. That’s a mighty high threshold, to state the obvious, and it places the nascent industry at the mercy of tourists, rich ones. That sound you hear is Singapore breathing easier … Speaking of the obvious, it’s a sad day when DraftKings CEO Jason Robins has to tell people that OSB is a losing proposition—for them. We’re still incredulous to learn that people actually consider sports wagers a form of investment …
A single slot machine at Beau Rivage delivered two six-figure jackpots in a matter of days. What are the odds management has since yanked the generous one-armed bandit from the floor? … Casinos in Florida were making a big deal of winning rights to jai alai betting from the clement Seminole Tribe. The Seminoles gave away nothing and, as though to prove it, the sport is about to go belly-up in the Sunshine State … Elsewhere, the Seminoles are putting their money where their mouth is. The latest act of charity is to underwrite a redesign of downtown Gary, home to Hard Rock Northern Indiana. Respect … The federal government is presently trying to stamp out Black History Month. But, to its credit, Cordish Gaming is having none of it. Maryland Live is showcasing the work of nine African American artists from the area. It’s great exposure for them and a terrific statement by Cordish. Godspeed!