Atlantic City Update

Sin City may be facing what’s been described as a “choppy summer” but the Boardwalk is suddenly firing on all cylinders. That’s even though more Garden State residents are gambling online than ever before. It’s too soon to draw conclusions beyond the one that drive-in gambling (or convenience gambling, depending on where you are) is suddenly in vogue.

Atlantic City casinos spiked 11% last month, reaching $265 million in May. However, it was a schizoid picture, as the premier casinos gained ground and the grind joints largely lost it. Borgata was of course in lead position, jumping 19% to $73 million, chased by Hard Rock Atlantic City, up 4% to $52 million. Ocean Casino Resort was a coffee achiever, vaulting 32% to $43 million. CEO Bill Callahan never will make good on his vow to become Number One on the Boardwalk, but give him props for a lively effort. Were it not for the Tropicana ($19.5 million, -2%) it would have been a rare halcyon month for Caesars Entertainment. Both Harrah’s Resort ($20 million, 9%) and Caesars Atlantic City ($20 million, 10.5%) manifested enormous gains. As for those grind joints, we can’t blame players for shunning them, given the reports we receive. Resorts Atlantic City defied the trend, up 7.5% to $14.5 million, so prexy Mark Giannantonio must be doing something right for once. Less fortunate were the Golden Nugget Atlantic City ($12 million, -12%) and Bally’s Atlantic City ($12 million, -4.5%), the only casino on the Boardwalk to be operating in the red.

iGaming continued to be hugely popular, as punters simultaneously splurged online and flocked to the seashore in droves. DraftKings (24% of revenue) and FanDuel (22%) both lost incremental market share to Caesars Palace Online (9%). BetMGM took 21.5%, BallyBet 2.5% and Hollywood Casino 1%. Revenue was $247 million, leaping 28.5%. Sports betting saw handle surge 20.5% to $1 billion, as revenue jumped 30% to $102.5 million. BetMGM had horrible luck, plunging to $2 million, while Bet365 soared to $6 million, as did Fanatics. FanDuel dominated with $44 million, against DraftKings’ $28 million. Also in the hunt were Caesars Sportsbook ($3 million), ESPN Bet ($5 million) and BetRivers ($2 million).

If Atlantic City residents want to complain about the governance they’re getting, they just forfeited their chance. By a 2:1 margin, voters went for indicted incumbent Marty Small (D, above) over primary challenger and former union boss Robert McDevitt. Considering that Atlantic City is a big union town, McDevitt really blew it. We don’t know who the GOP and independent challengers will be but Atlantic Citizens seem comfiest with the devil they know. Heck, they historically consider the mayor’s office a necessary prep school for the Big House.

Although Jack Ciattarelli (R) is currently favored to win the gubernatorial election in November, it’s mainly due to voter unrest over property taxes, utility prices, auto-insurance rates and so on. When it comes to the hot-button casino-smoking issue, he’s a loser. He’s going the weasel route, saying it’s an internal matter for Big Gaming and its unions. At best, that’s disingenous. Ciattarelli ought to know damn well that the UAW and Unite-Here are at each other’s throats on the smoking issue, while the casinos play divide and conquer. Without state-level action, the smoking pestilence will continue indefinitely … which seems to be what Ciattarelli would prefer. By contrast, rival candidate Mikie Sherrill (D, below) is an out-and-out opponent of smoking in casinos: “It is unacceptable to force working families to make a choice between earning their paycheck and protecting their health, particularly given that we know lung cancer is the top cause of cancer deaths in New Jersey.” We couldn’t agree more.

Getting back to Borgata, changes have been afoot at the market leader, as permanent refreshment is the hallmark of a state-of-the-art casino. Our Boardwalk correspondent reports that B Bar “was renovated and now includes bartop slot machines; relax with your drink and play a slot machine while you imbibe.” However, Gypsy Bar is gone, displaced by a baccarat chamber. Speaking of which, high-limit gambling rooms at Borgata are presently taking wagers from $100 to $25,000 a bet. Eatery Noodles of the World has been reinvented as simply Noodles.

Not out of last place, but pulling even with the Golden Nugget, venerable Bally’s Atlantic City is casting a wider net for players. Which is a good thing. Our man on the Boardwalk elaborates: “On Memorial Day weekend, Bally’s gave away a Ford Bronco on both Friday and Saturday nights. Before then, I assumed you had to be a high roller to win in such a contest. To my surprise, a friend won the Friday-night Bronco. She’s a mid-level player, not a high roller with thousands of entries.”

But more could be done. That same weekend, our guy tried to valet-park his car at Bally’s, only to be told on Sunday that “the valet was not open to input cars, but they would give us ‘VIP’ parking when we returned. When we returned, the valet said he couldn’t touch our car because the manager was in an argument with another customer nearby for refusing to input their car. We parked on the street, got our luggage, and left a day early.” Nice going, Bally’s.

To rub it in, as it were, one pays $60 per lamb chop at Bally’s Park Place Prime, compared to only $48 at the Nugget’s Chart House … and the Nugget made its reputation under Tilman Fertitta with good food. Also, the Nugget is offering $120 in monthly food credits (versus $50 at Bally’s), going up to $220 on holiday weekends. The Nugget is cleaning up its act—literally. The light globes above the escalators (pictured) have received the Windex Treatment and the casino’s fixtures are next. Also, LED lights have been installed, striking a simultaneous blow for both brightness and energy efficiency.

Atlantic City also made headlines in a not-so-good way when the legendary band Heart got robbed at Hard Rock Atlantic City, as you may have read. The May 30 theft cost the rockers “a custom-built, purple sparkle baritone Telecaster guitar with a hand-painted headstock made for band member Nancy Wilson, and a vintage 1966 Gibson EM-50 mandolin that band member Paul Moak has played for over 25 years.” First Ann Wilson is diagnosed with cancer, now this. It really kicks that “An Evening with Heart” tour in the keister.

We don’t know if this offer will be accepted, but the near-idle Atlantic City Airport has a chance to see some business. With Newark‘s airport notoriously overburdened of late, Atlantic County has offered the services of its underused one to relieve the congestion. Speaking of the friendly skies, the summer air show’s repertory was reported to include a Russian MIG 17, a World War II B-25 bomber, a flyover by some F-16s, some acrobatic planes, etc. Lastly, a couple of stylish vehicles: While Bally’s might have been giving away a Ford Bronco, Borgata went upscale and offered a Maserati (below), while the Golden Nugget split the difference and gave away a Corvette (bottom). May the best casino player win.