Atlantic City: Better than expected

As much as one hates the term “rightsizing” or endorsing the closure of four casinos, with all the job losses those entail, the numbers say that Atlantic City‘s casino market has been reduced to optimal size. December’s revenues were down only 1% from last year. Internet gambling dollars, meanwhile, shot up 31%, for a $14 million gross. The market share division for online play remains much as before, although Resorts Atlantic City‘s sloth in deploying its PokerStars affiliation is tantamount to giving money away to the competition.

Terrestrially, Borgata grossed $55 million, a 10% increase. Much of this was driven by the tables, where the house won 27% more, despite 7% less money wagered. That was quite a difference from the market as a whole, where table win fell 11% on a decline in wagering of only 1.5%. Borgata slots had 5% more coin-in and 4.5% more win. Citywide, slot win was down 4% despite 2% greater handle.

The market’s modest revenue decline can be put into two words: Caesars Entertainment. All three of its company’s casinos were down last month, to varying degrees. Grind joint Bally’s ($15 million) faded 10%, Caesars Atlantic City continued its volatile ways, down 19% ($22 million) and even reliable Harrah’s Resort ($27 million) was off 10%. Recapturing last place in the market was Trump Taj Mahal, which was flat from last year, grossing $11 million.

Up 16%, Resorts continued to put daylight between itself and the Taj, grossing $12 million. The Golden Nugget took in $14 million, a 2% boost, and the Tropicana Atlantic City grossed $21 million, a 4% lift. If the Borgata numbers and online gross (28% of market share) weren’t good enough news for Boyd Gaming, investment firm Susquehanna Financial Group initiated coverage of BYD, putting a $22 price target on the stock, which was trading around $18 at the time of the announcement. (Bon voyage and vaya con dios to Boyd COO Bob Boughner, incidentally.)

* Harvest has just debuted at Bellagio and already has been deemed the property’s second-best restaurant. However, my wife and I sampled its Hawaiian-influenced cuisine and think it could be the best at Bellagio. For once, Thrilllist has applied its criteria with some rigor.