As Las Vegas struggles, customers have been flocking to Atlantic City. It’s not a binary equation, obviously, but it does underscore the appeal of drive-in casinos in times of economic uncertainty. Day-tripping is on the ascent, long-haul travel not so much. Casino revenue hopped 4% on the Boardwalk in July, reaching $284 million. Those seeking to beat the heat stayed home and made iGaming a winner, shooting up 26.5% to $247 million. Sports betting was in a summer lull, with handle down 2% and revenue dipping 6.5%.
Atlantic City slots won 2.5% more on relatively flat coin-in whilst table games winnings jumped 9% on 3% larger wagering, so Lady Luck was definitely with the house. Well, not every house. Caesars Atlantic City slid 6% to $19 million and Tropicana Atlantic City dipped 1% to $23 million. The only grind joint to lose business was the Golden Nugget, dropping 8.5% to $13 million. It slipped into last place as Bally’s Atlantic City jumped 6% to $14 million. Grind-joint leader Resorts Atlantic City held serve, gaining 8.5% to $17 million.
Borgata was up 5% to a market-leading $80 million (!) while Hard Rock Atlantic City treaded water, flat at a still-impressive $55 million. Ocean Casino Resort leapt 18% to $43 million. No matter how good a month any of the Caesars Entertainment properties has, they pale next to the top three. Caesars’ more-is-more strategy in Atlantic City may warrant a rethink. Harrah’s Resort had the best month of the threesome, up 6.5% to $20.5 million.
DraftKings enjoyed the plurality of iGaming win, grabbing 23%, while FanDuel and BetMGM had 21% apiece. Much further back were Caesars Palace Online (9%), BallyBet (2%) and Hollywood Casino (1%). Turning the page to sports betting, it was FanDuel’s turn to clean up with $27 million, followed by DraftKings’ $21 million. Also-rans were many: Fanatics ($8 million), BetMGM ($7 million), Bet365 ($4.5 million), Caesars Sportsbook ($2.5 million) and ESPN Bet ($2 million). BetRivers made chicken feed and walk-up sports books actually lost money for the month.
Every time somebody wins a nickel at MGM Springfield, the casino puts out a press release about it. And the local papers lap it up. Well, Encore Boston Harbor—after sleeping through much of this marketing bonanza—finally got the idea. After letting MGM have the run of the Massachusetts papers for months on end, it finally bestirred itself to publicize a trio of jackpots. While MGM Springfield’s recent run of positive year/year results may be merely coincidental with the media blitz, it does not hurt to create the impression in the public’s mind that you’re a place where people win. It’s called common sense. Good on MGM Resorts International and welcome to the party, Wynn Resorts. Better late than never.
Speaking of MGM, could it find itself outside the winners circle when New York City casinos are chosen? It and Genting Group, and possibly Hard Rock International could all be doomed if New York State Gaming Commission Chairman Brian O’Dwyer means what he says. “Doom” is not to strong a word for the potential fates of MGM Empire City and Resorts World New York City if they don’t get upgraded to Class III status next year. They would literally become obsolete, offering on video lottery terminals and no table games, while their new competitors roll out traditional slot machines and tables. Players would emigrate, and MGM and Resorts World would have to close their doors eventually.
If that sounds hard, so does O’Dwyer. “If the Gaming Facility Location Board decides that no bidder is worthy, there will be no license issued,” he said sternly last week. “It could be one, two or three licenses.” O’Dwyer has been outspoken on the subject of casino malfeasance. Both MGM Resorts International and Genting have been found culpable for money laundering and duly fined. (So has Wynn Resorts, which prudently withdrew from the fray, as did former laundromat Las Vegas Sands.) The chairman stressed “character, fitness, and operational capacity.” That’s music to the ears of long-shot contenders like Bally’s New York and The Coney, which have kept their noses clean.
It’s also one step forward and one back for Steve Cohen and his Citi Field casino concept. Hard Rock recently sacked top executive Alex Pariente for alleged money laundering. Was the sufficient due diligence? Casino crusader R.J. Cipriani thinks it was. Does O’Dwyer agree? At least Hard Rock did something, unlike MGM and Genting, which got caught with their hands in the cookie jar. Says O’Dwyer, “Only those licensed candidates who have met the highest standards of integrity and operational efficiency will be awarded a license,” which doesn’t sound terribly good for either Genting (which has yet to repent) or MGM (which has repented). The chairman said the commission was looking at a tabula rasa of applicants and that, contrary to received wisdom, there are no favorites. If the two incumbents’ misdeeds were held against them, it might finally send a message loud enough that even the C-Suite can hear it.
If Resorts Casino Atlantic City revenue increases, and becomes higher than Caesars Casino Atlantic City, would the “grind joint” category change? The New Jersey beaches are closed today due to the off shore storm, so your beach photo is outdated.