“There is no evidence to suggest that casinos could not meet their PILOT obligations.” With those words Judge Michael Blee tossed New Jersey‘s current Payment In Lieu Of Taxes (PILOT) special-status tax program for casinos, which has lost round after round in the courts. The PILOT quasi-subsidy assesses each Atlantic City casino a share of its gross gaming revenue rather than levy property taxes. This has been the rule since 2016 but last year, in an overreach sped through the Lege by Gov. Phil Murphy (D), online gambling revenues are excluded from the PILOT assessment. This was done at the behest of alarmist casino owners, who said they needed the financial relief to get past the effects of the Covid-19 pandemic. Judge Bee found these grounds, in a word, dubious. They resulted in a $55 million shortfall that disproportionately affected Atlantic City proper.

Inflation and depleted discretionary income seem finally to have caught up with the Las Vegas Strip. July’s gambling win was 2.5% from the year previous (while locals casinos slipped 3%). The diñero, especially on the Strip, is so elevated from banner year 2019 that last month’s slight decline may not be cause for worry except for those on Wall Street who can’t see beyond one quarter to the next. But a heated (overheated?) casino recovery is definitely cooling if the Strip is off its 2021 pace. In dollar terms, Strip casinos booked $773.5 million while locals ones racked up $233 million. Strip slot revenue ($391 million) dipped 4.5% despite 1.5% more coin-in while table games ($247 million) gained 9% on 6% less wagering. Baccarat was off 14%, bringing in $135.5 million on a lower hold percentage. Locals simply didn’t have as much stomach for gambling, losing $191.5 million at the slots (-3%) on lower coin-in (-4%), while table play was down 1.5%, bringing in $41.5 million (-4.5%).

It’s in full swing at Marina Bay Sands and we’re covering it for CDC Gaming Reports, which means there won’t be much S&G this week. In the meantime, check out this he-said/she-said scandal involving former Interior Secretary Ryan Zinke (who seems to have a problematic relationship with the truth) and his apparent hanky-panky involving the attempted Tribal Winds casino in Connecticut. That project would be totally forgotten and unnecessary, given the struggles of once-feared MGM Springfield, had not Zinke’s inability to come clean not brought it back into the headlines.

Imagine an 8.5-mile Las Vegas Strip. You may not have to because “experts” say “it’s in the cards.” What’s the cause of this crazed optimism? No, it’s not the economy. The prospect of a baseball stadium at Sahara Avenue and Las Vegas Boulevard bookended by a basketball one at Blue Diamond Road is spurring such fantasies of untrammeled growth. Already, Dream Las Vegas has leapfrogged Mandalay Bay as the nominal southern terminus of the Strip and Station Casinos has undisclosed designs on a major site immediately below South Point. Former MGM Resorts International spokesman Alan Feldman thinks developers could get so carried away, they’ll extend the Strip all the way down to M Resort but “At some point, water is going to be a limiting factor. It almost already is.”

Despite a 12.5% dropoff in revenue from July 2021, Parx Casino outpaced the rest of the Pennsylvania pack last month, booking $51 million in revenue. The only other casino to come close was Wind Creek Bethlehem, riding a 13.5% surge to $48 million. As for Parx’s competitors in the Philadelphia market, only Valley Forge Casino Resort was revenue-positive with $12 million (+2%). Rivers Philadelphia and Philadelphia Live were both in free fall, with Rivers having the worst of it, plunging 26% to $17 million, while Live dove 16.5% to $18 million. Harrah’s Philadelphia, despite an 11% tumble, actually found itself within striking distance of the downtown casinos with its $15 million.