A.C.: Trump Dump gone, Hard Rock and Ocean going strong

At 9:08 a.m. yesterday, one of the towers of Trump Plaza was finally imploded, an important first step in clearing Atlantic City of its last excrescences of You Know Who. Maybe owner Carl Icahn, having been a “george” donor to the Boys & Girls Clubs of Atlantic City, can hold a charity raffle for the right to push the plunger on the next tower, assuming it doesn’t crumble of its own accord.

Now would ordinarily be the time for a catty metaphor involving implosions and Atlantic City gaming revenues but they actually did fairly well in January, 17% off last year’s pace. (And, as American Gaming Association President Bill Miller will point out, January and February 2020 were two of Big Gaming’s best months ever.) Casinos grossed $160 million, led by Borgata despite a pummeling from newcomers Hard Rock Atlantic City and Ocean Casino Resort. Borgata slot winnings fell 28% and table win plunged 31%. Citywide, table games were the saving grace, off 9% while slots were down 19%. Slots were also unkind (-28%) to the Caesars Entertainment threesome, down 25%, while its tables were -13%. Volatile Caesars Atlantic City was the most stable for a change, off 9%, for a $15.5 million gross. Harrah’s Resort plummeted 38% to $15 million while Tropicana Atlantic City imploded, er, tumbled 24% to $15.5 million.

Hard Rock grossed a bounteous $25.5 million, vaulting 24%, while Ocean leapt 21% to $20.5 million. Bally’s ceded 20% to $8.5 million, Resorts Atlantic City slipped 16% to $10.5 million and Golden Nugget toppled 333.5% to $10 million. Some of the low rollers made it back through i-gaming, catapulting 88% from last year. JP Morgan analyst Joseph Greff estimated Golden Nugget’s market share at 10% ($10 million), topped by Caesars/William Hill with 14% ($14.5 million), DraftKings‘ $15 million and BetMGM‘s 28% ($29 million). Sports betting almost cracked the $1 billion mark, with $957 million in handle, of which sports books kept $82.5 million, gains of 81% and 24% respectively. At 51% market share, FanDuel led with $42 million, followed by DraftKings’ $15 million (19%), BetMGM’s $8.5 million (10%) and CZR/WMH with $7.5 million (9%). Heaven knows how high the handle would have gone had the hapless New York Giants and hopeless New York Jets made the playoffs, a bungle that Credit Suisse analyst Ben Chaiken pegs at $120 million in lost handle. Basketball led all handle with $320 million.

“With the NHL back in action and the NBA with a full schedule, January’s sports schedule was more or less normal for the first time since February 2020,” PlayUSA analyst Dustin Gouker said. As for Internet gambling’s $104 million benchmark, Gouker colleague Eric Ramsey explained, “Obviously with pandemic-related restrictions in place on Atlantic City casinos, online casinos were in position to pick up some slack. But the online gains made over the last year should withstand the reopening of retail casinos, continuing to buoy the entire gaming industry.”

Compared to the Garden State, Pennsylvania was more schizoid, with terrestrial casinos down 27% (worse, if new product is not factored). Slot win, $141 million, tumbled 26% while tables grossed $51 million, a 30% falloff. No casino was revenue-positive. Little Pittsburgh Live debuted with $6 million while big brother Philadelphia Live posted an unimpressive $4 million. Parx Casino continued to dominate with $40.5 million (-20.5%), followed by Wind Creek Bethlehem‘s $26 million (-34.5%). In the greater Philadelphia market, besides Parx and Live, Harrah’s Philadelphia took home $14 million (-35%), SugarHouse also grossed $14 million (-45%) and Valley Forge Resort Casino made $9 million (-25%). Feeling the sting of new competition, Rivers Pittsburgh fell 39% to $19.5 million, while nearby The Meadows racino slid 34% to $12 million. Elsewhere, Mohegan Sun at Pocono Downs grossed $12.5 million (-33%), Presque Isle Downs eked out $6 million (-35.5%), Mount Airy slipped 18.5% to $12 million and Hollywood Casino was down 22% to $15 million.

Sports betting and Internet gambling were quite another story. Revenue for the sports books was $49 million, diluted by $15 million in promotional spending as BetMGM entered the Keystone State. Still, revenues were up 56% on handle of $615 million. Online betting was actually down, 94% versus December’s 97.5%. FanDuel/Valley Forge continued to lead with $221 million in handle and $14 million in revenue, followed by DraftKings/The Meadows ($143.5 million/$8 million) and Barstool Sportsbook/Hollywood Casino ($65 million/$1 million). Not only did Barstool play exceptionally unlucky, it lost market share. At least it showed up on the radar, unlike Caesars ($36K revenue). Others making a solid “ping” included Bet Rivers ($27 million/$1 million), FoxBet/Mount Airy ($26.5 million/$2.5 million) and Parx ($23 million/$2 million). Observed Gouker, “for the state’s gaming industry to truly be healthy, it needs to see a full recovery with retail betting. If the pandemic continues to recede, that return to health could happen by the second half of 2021.”

Internet games brought in $80.5 million. Mount Airy’s i-poker monopoly was worth $3 million, while Penn National Gaming/DraftKings grossed $27.5 million online and PlaySugarHouse/BetRivers took home $21 million. Concluded PlayUSA analyst Valerie Cross, “With retail casinos closed, December’s record could have been an outlier. But January’s results prove that the gains made last month are more than resilient. Such a strong start to the year could mean a year with more than $800 million in online casino revenue, which would be huge for the state.”

Broadcaster Rush Limbaugh died yesterday of lung cancer at age 70. When his hometown was awarded a casino license, there was scuttlebutt that El Rushbo planned to invest. Liberal interest groups shrieked with outrage that Limbaugh should own a casino in Cape Girardeau … or anywhere. Our take? It was his money, he earned it and had a right to invest it wherever he damn well pleased. Sheesh!

Jottings: Scottish brewer James Watt is “just a tiny bit excited” about his new project: a beer garden and museum atop Showcase Mall on the Las Vegas Strip. The watering hole, BrewDog, will feature both Elvis Juice (grapefruit beer) and even a swimming pool … March 3 is the big day for The Mirage, Park MGM and Mandalay Bay, which all resume ’round the clock service on that date. MGM Resorts International CEO Bill Hornbuckle said the move was in response to “positive signs around the public’s sentiment about traveling.” Those signals aren’t manifesting themselves in Strip room rates (yet), which remain significantly depressed … Our congratulations to Spa Atlantis in Reno. It has received a four-star rating from Forbes Travel Guide. Keep up the good work … Super Bowl LV was seen by 100.5 million U.S. TV viewers, making it the top-rated sports telecast of the last year. However, it was the lowest-rated Super Bowl since 1969. Did potential viewers sense the game would be a stinker?