Adding more and more casinos isn’t ‘growing the pie’ in Pennsylvania. Instead, the bottom fell out of September’s numbers, which were 8% below 2019 ones (i.e., the good old days). Against last year, they were 1% lower, for a tally of $280 million. Parx Casino, the Keystone State’s only smoke-free gambling den, was 5% off last year’s pace but still was rolling in dough to the tune of $49 million. Next best in the Philadelphia market was Philadelphia Live, having picked itself up off the canvas, posting a 1.5% gain to $18.5 million. Rivers Philadelphia (above) fell 10% to $17 million, Harrah’s Philadelphia slid 11% to $13 million and Valley Forge Resort brought up the rear with $11 million, a 5% slippage. Outstate, the runaway winner was Wind Creek Bethlehem, up 2% to $43 million and a great success story for tribal gaming.
In the Pittsburgh area, Rivers Pittsburgh clobbered the competition with $30 million (-3%), as Hollywood Meadows also ceded 3% to hit $16 million and Pittsburgh Live gained 1.5% for $9 million. Smokers flocked back to Mount Airy, which jumped 9.5% to $17 million, whilst Penn National tumbled 11.5% to $14 million. Presque Isle Downs was down 4% to $10 million, Lady Luck Nemacolin plunged 17.5% to $2 million, Hollywood York vaulted 20% to $9 million and newbie Hollywood Morgantown contributed $5 million. Returning to Philadelphia Live for a moment, since 2019 it has cost Harrah’s 34% of its revenue and Rivers Philadelphia 28%, while leaving Parx unaffected. Really, how wise was it to site five casinos in the greater Philly area? Not very.
In cyberspace, Pennsylvanians lost $113 million to Internet casinos, an increase of 15% over last year. BetRivers is estimated by Deutsche Bank to own a 23% market share, closely rivaled by DraftKings‘ 21.5%, while FanDuel lagged at 17.5%, vying with BetMGM‘s 17%. Barstool Sports (4%) and Caesars Entertainment (3%) struggled for market share. Sports betting brought in $75 million, which turned into $50 million after one in every three dollars was returned in promotions. DraftKings (34.5%) is closing on FanDuel (35.5%) for supremacy in market share. BetMGM was way back at 8.5%, followed by Barstool at 6.5%.
I-gaming revenue in Michigan outstripped private-sector casinos, $129 million to $101 million. Brick-and-mortar operators are evidently so irrelevant that Deutsche Bank’s Carlo Santarelli ignored them altogether and J.P. Morgan analyst Joseph Greff provided only 2019 comparisons. By that yardstick Hollywood Detroit plunged 22% to $21 million while MGM Grand Detroit hopped 4% to $48.5 million, leaving $32 million for MotorCity (no comparison given). BetMGM was comparably dominant in i-casinos with $46 million, distantly trailed by DraftKings’ $28 million and FanDuel’s $22.5 million. Also in there swinging were BetRivers ($8 million), Caesars ($5.5 million), Barstool ($3.5 million) and WynnBet ($3 million).
$364.5 million in sports-betting handle boiled down to $48 million, of which $20.5 million went right back out in promos, with BetMGM being the most generous. FanDuel walloped its rivals in gross revenue with 40% (per Morgan estimates). Then came DraftKings and BetMGM at 22% and 21% respectively. Also-rans were Barstool (7%) and Caesars Sportsbook (5%). The remaining 5% was split among numerous piddling operators. (It’s interesting that online bettors draw a clear, bright line in Michigan between MGM’s casino and i-gaming offerings, which they prefer, and its sports betting, which they don’t.)
When Apollo Management took over Venelazzo from Las Vegas Sands, we frankly expected a sack-and-pillage of the metaresort, much as Apollo had done at Caesars, in cahoots with Gary Loveman. Instead, they’ve publicly committed to investing $1 billion in renovations. Now that’s what we call capex! CEO Patrick Nichols promises that “We are looking to elevate our experiences resort wide. Arrival experiences will be different. For both The Venetian and The Palazzo, we plan to renovate, remodel and redesign all of our suites. We will be offering a number of new F&B concepts, we are taking a deep look at entertainment, nightlife and bar offerings, and the casino floor will feel significantly different as well.”
As long as Apollo is taking suggestions, we offer that “the casino floor will feel significantly different” if ownership were to get rid of smoking. Venelazzo has two of the most blah, ‘me-two’ casino floors on the Las Vegas Strip, with Palazzo’s being just a big barn o’ slots. And let’s hope the remodel of the suites doesn’t result in the removal of the mini-bars that Sheldon Adelson so thoughtfully installed 23 years ago, a game-changing move. As for Venelazzo’s entertainment program, here Apollo would do well not to follow Adelson’s playbook. Shows traditionally suffocated there (and restaurants, too) because Sheldon wanted all his money up front and charged usurious rents. Phantom of the Opera ran for years and closed in the red because of this short-sighted policy. (Phantom is long since out and Lin-Manuel Miranda is soon in, which we count a good move.) Let’s give Apollo the benefit of the doubt as Nichols moves forward.
Quote of the Day: “Try not to become a person of success but rather try to become a person of value.”—Albert Einstein
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