An extra weekend day helped nudge Atlantic City casinos up 8% last month, for a $192 million gross. Tables were relatively sluggish (+1%) but 
slots were hot (+11%). Borgata gained 8.5% on the strength of 4.5% more table win—despite 3% less wagering—and 11.5% higher slot win on 1% more coin-in. Yes, the house played very lucky, to the tune of $55 million. Across town, that “high-value customer” strategy sure is working out for Tropicana Atlantic City ($20.5 million), as revenues plummeted 23%, thanks to 23% less table win on 21% fewer wagers. The Trop’s saving grace was a 2.5% bump in slot revenue on 2% more coin-in. Hard Rock Atlantic City ate the Trop’s lunch, shooting up 38% to $21.5 million.
As a whole, the Caesars Entertainment trio gained 1%, with aggregate table win up 10.5% on 10% more bets, while slot win and coin-in were up 6% alike. Caesars Atlantic City was flat at $17 million, Harrah’s Resort gained 9.5% to $23.5 million and Bally’s sank to last place with $11 million, an 11.5% declivity. Gainers included Ocean Casino Resort, jumping 36% to $17 million and Golden Nugget, up 3% to $15 million. On the losing end was Resorts Atlantic City, down 2.5% to $12 million.
Over at the Hard Rock, President Joe Lupo is trying to reverse-engineer Internet gambling, deploying live slots that can only be played remotely, 
over the Internet. The idea is to break down inhibitors punters might have about playing in a bonafide casino. “Credibility and transparency have been paramount to seeing online gaming move forward,” Lupo told ABC News. “The difference between seeing a computer image as opposed to the kind of machine that a customer has been playing for years, it may be easier to understand.” It’s also a ‘gateway drug’ for slots that presently aren’t available in an online iteration.
Sports betting may be the real headline, with $540 million in handle, of which sports books kept 44%. $13 million of handle was placed “on future events,” which we take as a euphemism for the Super Bowl. “New Jersey could very well top Nevada, not just in January, but for the foreseeable future,” crowed analyst Dustin Gouker. And not without reason. Nevada has never had a $500 million January. Explained PlayNJ.com analyst Eric Ramsey, “No market has been as innovative, and that is a significant contributor to the rapid maturity of New Jersey’s sports betting industry.” Nevada does have a high bar to clear now.
* In a surprise move, MGM Resorts International CEO Jim Murren is resigning, effective the appointment of a successor. No specific reason was given but Murren seemed to be taking the fall for a weak 4Q19. In an earnings statement, Murren said, “our fourth quarter results were below our expectations, primarily due to lower than expected hold, weakness in Far East baccarat, and certain one-time items. All other dimensions of our business in Las Vegas performed on or ahead of plan.”
After 12 years at the helm of MGM, perhaps it was time for a change of leadership and the company has a strong bench of natural successors (William Hornbuckle springs to mind), not to mention a clearly articulated strategy that can last it several years to come. So Murren’s resignation does not throw the company into disarray, as Steve Wynn‘s did just up the street. Murren wasn’t shy about saying which way the company ought to go in his absence, indicating that his successor should focus on sports. In other words, keep building the company in Murren’s image. Wall Street liked the news, with shares jumping as high as $35.49 before subsiding.
Murren can look back on major accomplishments, such as creating CityCenter, promoting public art, buying the Las Vegas Aces, bringing the Las Vegas Golden Knights to T-Mobile Arena and reshaping Strip business models around 
the convention trade. He also has a few failures on his watch, including MGM Springfield and the Rock in Rio festival site (now owned by Phil Ruffin). And he leaves unfinished business in Japan, where the company is still years away from its goal of an Osaka megaresort. Also, while he seems to have given up on a casino in his home town of Bridgeport, MGM is still elbowing for a piece of the Connecticut sports-betting action. All that devolves onto his successor, whomever that turns out to be.
Murren plans to be heavily involved in that choice, which stock analyst David Katz said should entail splitting the CEO and chairman of the board roles. “I expect that this is a desirable position and they can get someone to have a positive impact on the company,” he added. In the 
meantime, Murren can roll up his sleeves and get to work revising the company’s 2020 guidance to take coronavirus into account. Said the company, “Although the outbreak has been largely concentrated in China, to the extent that the virus impacts the willingness or ability of customers to travel to the company’s properties in the U.S., the company’s domestic results of operations could also be negatively impacted.” Added Murren, “While the coronavirus will clearly have a near-term impact to MGM China, we remain confident that it will not have a long-term impact on our business.”
Meanwhile, it was business as usual at MGM. We don’t have property numbers from Macao but the Las Vegas Strip didn’t do badly. Only Circus Circus (-14%) took a tumble, to $51.5 million, although Bellagio ($334 million, -1%) and MGM Grand ($276 million, -2%) lost 
very modest amounts of ground. Park MGM performed spectacularly, up 69% to $106.5 million, while Luxor gained 11.5% to $100 million. Other gains were less eye-catching but solid: Mandalay Bay $229 million (+3%), The Mirage ($151 million, +3%) and New York-New York ($96 million, +2%). In regional markets, MGM National Harbor led with $203.5 million, albeit a 5% decline. Borgata raked in $196 million, up 2%, MGM Springfield made $71 million, a 9% dive, MGM Northfield Park grossed $68 million, Empire Resorts in Yonkers pulled in $49.5 million (you can see why MGM wants table games), MGM Grand Detroit was flat at $153 million and the company’s combined Mississippi operations made $158 million, an 8% boost.
AC: the “high value customer” strategy never worked that well after AC lost their East coast monopoly on gambling and the Great Recession. A Trump Entertainment exec was quoted as “not wanting the people who wear out the carpets”. The Caesars AC people are currently offering rooms for less than Laughlin, NV. Last year, MGM’s Borgata invited Platinum players (225,000 player points) to their night club for a private event the night before the annual AC air show, then told us/them to just go away because they made a mistake in the invitations. Glad to hear that Murren will be going away.
Very surprised about Murren. Lets face it, he helped usher in a type of Wall Street management style in the industry and was a good steward for the company; especially during the “great recession” for which he might be credited for saving the company! That alone, based on his account of the work that it took, would have driven other executives into early retirement. Congrats to him on a job well done. All the best.
Over the last 6 months I spent a lot of time in AC. The results confirm what I saw on the ground. Ocean is in a roll and will grow further. Hard Rock too although I had a horrible experience with thier online app. All of the Marina casinos did OK. On the Boardwalk the Trop is old and boring and down. Same for Ballys. The Wild, Wild West is always the quietest place in town, even on summer nights. Ocean and Hard Rock upped the game and the results are good. El Dorado really needs to invest in Ballys. If they don’t, Caesars will start to sink too.