Atlantic City up in November; Sports betting comes to Michigan

Gross gaming revenues of $224 million in Atlantic City last month represented a 7% gain. Table games (+11%) led the way, followed by slot revenues, up 6%. Table win at Borgata rose 14.5% on 7% more wagering, as the house played lucky, and slot win nudged 3% higher on 2% less coin-in (no surprise, holds were 9% tighter). The Caesars Entertainment trio was up 8.5%, driven by 21% higher win on 11.5% greater wagering. Slots won 3% more on flat handle. Eldorado Resorts continues to fumble away business at the Tropicana Atlantic City, down 7% to $23.5 million. (Borgata’s $59 million easily led the market.) Caesars Atlantic City set the pace for the Roman empire, vaulting 27% higher to $28 million, followed by Harrah’s Resort with $25.5 million, microscopically up. Bally’s Atlantic City let the side down with a 7% decline to $13.5 million and last place in the market. It’s making a strong case for closure when the Caesars/Eldorado merger is consummated.

Bally’s slid down past Resorts Atlantic City, which tumbled 15.5% to $14 million. Outperforming the rest of the market was Ocean Resort Casino, rocketing an astonishing 67% to $19.5 million. Hard Rock Atlantic City, though hard-pressed to match that feat, grossed $23.5 million for a 9% gain. Golden Nugget was up 4% to $17 million. Sports betting generated $562 million in handle and $33 million in revenue (not a deep well for Mayor Marty Small [D] to tap). “More than $5 billion in 18 months is an extraordinary total, showing that New Jersey‘s sports betting market reached maturity far more quickly than most expected,” said Eric Ramsey, analyst for PlayNJ.com. “No other state that has legalized sports betting has experienced quite as quick a ramp-up as New Jersey, a testament to the strong infrastructure that was put into place in the state.”

Online wagering represented 86.5% of handle, with FanDuel Sportsbook/PointsBet in front with $12 million. FanDuel also led walk-up wagering with its Meadowlands sports book generating $3 million. Those good times are going to keep on rolling as long as New York State continues to balk at sports betting. Internet casinos won $49 million, another impressive take.

* Pennsylvania slots were up 3.5% for a gross of $189 million. As expected, Parx Casino led the pack with $35 million (+5%), followed by Rivers Casino Pittsburgh ($25 million, +9%) and Wind Creek Bethlehem

($20.5 million), although the latter was a Pyrrhic victory for Wind Creek, down 9% in an aberrant Keystone State shortfall. The only other revenue-negative casino was The Meadows racino, just 1% off its feed at $16 million. Valley Forge Resort Casino continues to outperform the state, leaping 21.5% to $9 million. Rivers Casino Philadelphia gained 2.5% to $14 million while Harrah’s Philadelphia was up 1.5% to $15 million. Outstate, Mohegan Sun at Pocono Downs was up 8% to $16 million, Mount Airy jumped 6% to $12 million, Presque Isle Downs was up 4% to $8.5 million and Hollywood Casino was flat at $16 million.

* Detroit casinos had a good month, up 5.5% to $124 million. Of course MGM Grand Detroit led the pack with $54 million (up 3%), while MotorCity gained 7% to $41 million and Penn National Gaming had its first good month at Greektown, leaping 9% to $27.5 million. Good work, everybody.

In bigger Michigan news, sports betting, daily fantasy sports and Internet gambling finally made it out of the state house and onto Gov. Gretchen Widmer‘s desk. The success of this legislation is a tribute to the persistence of state Rep. Brandt Iden (R, pictured), who has kept at this for several legislatures. In the best bipartisan fashion, he and Widmer did some horse trading over tax rates, with Iden giving a little and Widmer ceding a lot. Sports betting and DFS will be taxed at 8.5% at 23 (!) tribal casinos, and 11.75% in Detroit. Online gambling is where the big bite is taken, with tribes paying 20%-28% (the tax is progressive) and Detroit casinos ponying up 31.25%. Sports betting is hoped to be ready in time for March Madness. Said state Sen. Curtis Hertel (D), “The reality is right now sports betting is happening in Michigan, millions of dollars is being bet in Michigan every single day. Organized crime is the one that actually is winning right now. By providing a legal, safe and regulated system, you’re actually taking a big hit to organized crime.”

Well put. Another admirable feature of the legislation is that it ends a ridiculous ban on political contributions by casino owners. Why should they have fewer political rights than the rest of us?

* One economic indicator that looks very good for 2020 is wagering, which is expected to pass $565 billion worldwide by 2022. The increasing promulgation of gambling (think sports betting in the U.S.) is considered a leading factor in the positive trend. Wagering on e-sports and the growing popularity of cryptocurrencies are other favorable auguries.

* Ever wonder how MGM Resorts International recycles all that used hotel soap? FamilyHandyman.com takes the mystery out of the process. It involves professionals called “soap whisperers.”