Atlantic City: Managing expectations; Prosperity in Pennsylvania, Detroit

Grossing $209 million last month, the Atlantic City casino market continues to grow, up 12% in the dead of winter, even if it was 7% down on a same-store basis. That’s a tradeoff the industry will have to accept, as more competition is proving good for Atlantic City as a whole, if not always beneficial to incumbent operators. Slots were up 11% (down 7% same-store) and tables bounced 17% (-6% same store). Borgata — $57.5 million — was flat overall but enjoyed a 9% bump at table games on 6.5% less wagering, while slot win was 5%. The Caesars Entertainment trio got thumped, down 14.5% and led by a 21.5% falloff in table win, on dramatically lower wagering. Over at Tropicana Atlantic City ($26 million), revenue was 2% down, with a 4% slip in slot winning negating a 6.5% increase in table win. Even so, Tropicana comfortably maintained the #2 spot, while Hard Rock Atlantic City and Harrah’s Resort tied with $23.5 million (-19% for Harrah’s). Caesars Atlantic City grossed $21.5%, off 10%, and Bally’s Atlantic City brought in $14 million, a 13% decline.

The only revenue-positive casino was Resorts Atlantic City, up 2% to $14 million. That put it comfortably ahead of last-place Ocean Resort, grossing $12 million and in need of revenue generators other than its admired sports book. Rounding out the picture was Golden Nugget, grossing $16.5 million and down 11%.

* As reported earlier in this space, Detroit casinos are coming off their best year ever. They closed out December strongly, with MGM Grand Detroit grossing $55 million (+9.5%), MotorCity nabbing $43 million (+9%) and even Greektown up 12% for $29.5 million. Over to you, Penn National Gaming.

* Pennsylvania slots, responsible for three-fourths of the Keystone State’s gambling revenue, have been tallied and Parx Casino quashes the competition (again) with $35.5 million (+8%), followed by Sands Bethlehem (+4.5%) and Rivers Casino (+12%) both with $26 million. All casinos were revenue-positive, led by Valley Forge Resort Casino, up 18% to $8 million. Harrah’s Philadelphia ($16.5 million) and Mohegan Sun Pocono Downs (ditto) were up 5% and 3% respectively. The Meadows grossed $18 million, a 9% gain for Penn, while Hollywood Casino was also up 9% to $18.5 million. Presque Isle Downs vaulted 17.5% to $9 million and SugarHouse gained 5.5% to reach $15 million. Mount Airy was up 7% to $11.5 million and even tiny Lady Luck Nemacolin rose 6% to gross $2 million. Hey, every little bit helps.

* Leading economic indicators out of Macao are good. Credit is up 10%, reserve requirements in banks have been halved and tax cuts are on the way. However, don’t break out the cake and sparklers just yet: It will take 12-15 months for these factors to show up in casino revenues, sayeth Credit Suisse analyst Cameron McKnight. “If Macau revenue growth decelerates, it likely reflects macro conditions at least a year ago — when credit growth was slowing. Secondly, credit growth is very volatile m/m and q/q,” he writes.

* Vdara guests — well, some of them — can take advantage of the hotel’s new Club Lounge. It offers a pre-arrival concierge service, all-day noshing, free booze between 2 p.m. and 4 p.m., and quiet spaces in which to work. It’s available for free if you’re staying in a Luxury Suite, City Corner Club Lounge Suite or Studio Fountain View Club Lounge Suite. Other guests can use the lounge for a pricey $75 fee ($100 on weekends). It’s out of our price range but we think it’s a grand thing for Vdara guests.