Pennsylvania rebounds; Mega-jottings

After grappling with the effects of gaming saturation for several months, Pennsylvania flexed its muscles in September, up 9% from 2019. The gross was $283 million. On a same-store basis (i.e., discounting the effects of new casinos), the Keystone State was 4% off the 2019 pace. Slot revenues of $199 million were 6% down but table game revenues grew 3%. Most casinos were revenue-negative for the month, some severely so. Pacesetter was Mohegan Sun at Pocono Downs, up 8% to $19 million. Parx Casino never seems to have a bad month, climbing 4% to a state-leading $51.5 million. Wind Creek Bethlehem grew 3% to $42 million. Aside from Parx, the Philadelphia market was a dog-eat-dog affair. Rivers Philadelphia (above) continues to lose market share (-19%) to Philadelphia Live but clings narrowly to second place, $19 million to $18 million. (Fears that Live would be a category killer appear overblown.) Harrah’s Philadelphia plunged 25.5% to $15 million while Valley Forge Resort Casino was down but 2% to $11 million.

Across the state, Rivers Pittsburgh was flat at $31 million and Hollywood Casino at The Meadows slipped 2.5% to $17 million, while novel Live Pittsburgh grossed $9 million, obviously generating some new business. Presque Isle Downs dipped 4% to $10 million, Mount Airy was flat at $15.5 million and Hollywood Penn National stumbled 15.5% to $16 million. Hollywood Casino York debuted with $7 million and Lady Luck Nemacolin was down 25% to $2 million.

Impressive as the month’s sports betting numbers were, they were overshadowed by New Jersey‘s much bigger ones. Handle of $578 million translated into $48 million in revenue but $20 million of that went right back out again in promotions. Still, promos as a percentage of handle (3.5%) were conservative compared to Michigan‘s almost 7%. DraftKings was singularly unlucky, garnering 28% of handle but only 7% of revenue. FanDuel‘s $14.5 million led the state in revenue, then came Rush Street Interactive ($4.5 million), DraftKings ($2 million), Barstool Sports ($2 million) and BetMGM bringing up the rear. If we had to pick a candidate for consolidation it would be roadkill Betway, which turned $1 million of handle into a $24K loss. “Barstool hasn’t quite achieved the ‘world domination’ that founder Dave Portnoy proclaimed with the app launched, but it has performed well,” said Play USA analyst Dustin Gouker with some understatement, noting that nobody had seriously challenged either FanDuel or DraftKings yet.

When it came to Internet gambling, revenue was $98 million and the Hollywood Casino gaggle of skins aggregated $38.5 million to lead the market. Rush Street’s collection of skins won $27 million by its lonesome and FanDuel grabbed $16 million, followed by FoxBet‘s $5.5 million. Play was predominantly on slots ($69 million), then table games ($26 million) and poker ($3 million). Explained analyst Katie Kohler, “When sportsbooks do well it tends to lift the fortunes of online casinos, and vice versa. We saw that in action in September.”

Scientific Games scored a coup today, inking a new, five-year pact with the Missouri Lottery to be its primary provider. It’s been a durable marriage, dating back to 1986 (meaning the new deal will take the twosome to their 40th anniversary). The games are estimated to have generated $7 billion for Show-Me State schools. Remarked Scientific Senior Vice President John Schulz, “We are proud that our work across the retail and digital channel has resulted in one of the world’s highest performing lotteries, and we look forward to continuing our track record of delivering maximum proceeds for education in Missouri.”

An idea whose time has come appears to be working out well in the Garden State. Citizens of New Jersey who have been convicted of drug-related offenses are no longer barred from holding jobs in casinos. We’re staunch opponents of the War on Drugs and this particular cease-fire may take hold in other states as well. “It means they can start at the bottom, in whatever casino job, and work their way up,” said New Jersey Casino Control Commission Chairman Jim Plousis, a case-hardened former lawman. “80 percent of the people we dealt with [in law enforcement] either had a substance abuse problem or bad influences in their lives and just needed somebody to get them on the right track,” says the practitioner of rehabilitation. The casino program is structured to have a low tolerance who people who recidivate but also to give a hand up to those who are serious about sobriety. It sure beats warehousing people in jail, especially ones who pose no threat to the community. We need more regulators like Jim Plousis.

Jottings: DraftKings has been given another month to dither over buying Entain. The situation has been complicated by MGM Resorts International‘s latest plan to buy 100% of BetMGM, half-owned by Entain … Gila River Indian Community has broken ground on Santan Mountain Casino, its fourth in the Phoenix area. The 850-slot facility is budgeted at $150 million … Despite winning in court this week, the Seminole Tribe isn’t expected to incept sports betting until Nov. 15. Meanwhile, it’s teaming up with odd bedfellow No Casinos and putting $110 million into opposing petition drives to breach tribal exclusivity over sports betting. Say the Seminoles, “watch out for out of state gambling companies spending tens of millions to turn our state into another Las Vegas” … A Vegas-backed ballot initiative in California has drawn the support of the mayors of Oakland, Sacramento, Fresno and Long Beach. The initiative would see OSB providers partner with Cali tribes, with 85% of the proceeds going to fight homelessness. Said Fresno Mayor Jerry Dyer (R), “This initiative helps do that by generating hundreds of millions of dollars in badly needed revenue—without raising taxes on residents” … Genting Group should be back in the pink by 2023, powered by Resorts World Las Vegas. That’s the verdict of Fitch Ratings, which predicts a quicker recovery in the U.S. than Singapore … Station Casinos is dragging its feet in its latest wrangle with the National Labor Relations Board. NLRB Judge Amita B. Tracy has demanded that a “contumacious” Station produce documents that were requested back on Sept. 3. According to Tracy, Station has only supplied “more excuses as to why the documents have not been provided.” Ergo, the company has been subpoenaed by the NLRB. For its part, Station tends to regard the feds as a catspaw of the Culinary Union.