Atlantic City slumps; New wrinkle in Lake Tahoe

First the good news: Internet gambling revenue was 17.5% last month, grossing $22 million. Golden Nugget continues to wildly dominate this
category, up to 36% of market share. Borgata and Resorts Digital were tied for a distant second with 17% each. Now for the bad news. Terrestrial casinos continued to slump, with the Boardwalk down 9%. Even the big dog, Borgata, was off 5.5%, grossing $55 million. (That looks like a typo but isn’t.) Table games revenue bit the big one, falling 9.5% to $15.5 million, while slot revenues were 3.5% off, to $38 million on flat coin-in. Elsewhere in the market, the Caesars Entertainment portfolio sagged 12.5% for a $60 million. (Note that it takes Caesars three casinos to equal or surpass Borgata.) Caesars Interactive is also suffering, settling into last place with 14.5% of market share.

Citywide, the $124 million in slot revenue was down 6% on 4% less coin-in while tables suffered from both a 12.5% decline in wagering and a 16% drop in wagering. To say the house lost would be right on the money, as it were. Most unfortunate of the casinos was Resorts Atlantic City, tumbling 21% to $12 million. The market’s only bright spot, in fact, was Golden Nugget, up 5% for a $17 million finish. Caesars Atlantic City plummeted 23% to $17.5 million, Bally’s fell 13% ($14 million) and Harrah’s Resort dipped 4%, to $28 million. Tropicana Atlantic City chalked up an impressive $26 million, but even that was an 8.5% decline. We’ll know in a day or two whether adverse weather affected the results (snow in New Jersey is tantamount to a blizzard on the Boardwalk) or whether it’s some form of malaise. Let’s put it this way: If Hard Rock Atlantic City, Ocean Resort and a revived Showboat all hit the market this summer, the market will be well and truly challenged in its elasticity.

* Whatever the knack for running casinos is, “Detroit Dan” Gilbert doesn’t seem to have it in spades. While his Detroit rivals were battling moderate declines, Jack Detroit spiraled down 9% ($25 million). Mind you, that number would be good for third place in Atlantic City. Unfortunately, it’s also third place in Detroit, where MotorCity grossed $38.5 million (-5.5%) and MGM Grand Detroit continued its dominance with $46 million (-5%). Greektown started out as a third-rate facility while MGM went for the brass ring and the market has rewarded the latter accordingly.

* Sands Bethlehem ($24 million, -6%) is going to have to do some catching up at the tables in order to best Parx Casino‘s advantage ($33 million, +6%) in slots revenue. Except for Lady Luck Nemacolin (-13.5%), the slot picture in Pennsylvania was one of small gains and retreats: Mohegan Sun ($16 million, -4.5%), Harrah’s Philadelphia ($17 million, +3%), Presque Isle Downs ($9 million, +1%), The Meadows ($17 million, -3.5%), Mount Airy ($8 million, -8%), Hollywood Casino ($16 million, -6%), Rivers Casino (above, $22.5 million, -2%), SugarHouse ($15 million, -2%), Valley Forge ($7 million, +2.5%).

* While we’re on the subject of slots, Hard Rock Lake Tahoe is revising its slot offerings. It’s introducing a new, high-limit slot room “an exclusive and chic lounge where guests can enjoy machines that offer larger playouts than the slot games on the casino floor.” (Is that code for looser holds?) It’s also adding a four-table gaming area somewhat pretentiously titled Vibe @ The Book, where guests can play blackjack and follow March Madness simultaneously. That sounds like a good idea on management’s part: Distracted players are sure to be sloppier ones too.