Rough April for Atlantic City; Britney to jilt MGM?

As always, Atlantic City proves to be a good-news/bad-news story. Gaming revenue there was up 8.5% higher last month but the love had to be spread thin, as same-store revenues fell 12%. Casinos grossed $207.5 million with slots up 6% (but down 13% same store) and tables won 15% more, but 8% less same-store. Despite a sensational month at the tables (64% higher win, despite 21.5% less wagering), Borgata was flat as slot win plunged 13.5% on 15% less coin-in. It grossed $53.5 million overall. The Caesars Entertainment cluster was 13.5% lower, driven by a 20% decline at the tables—where wagering was 10.5% and a 10% slippage at the slots, on 9% less coin-in. Harrah’s Resort is projected to have the roughest 2Q19, down a forecast 14%.

Tropicana Atlantic City ($24 million) also got hit hard, sliding 13% netherward. Bally’s was down 7%, grossing $14 million, Harrah’s pulled in $27 million for a 6.5% decline and volatile Caesars Atlantic City plummeted 24% to $22 million. A $23.5 million gross for Hard Rock Atlantic City couldn’t keep it out of fourth place while Ocean Resort did $15 million in business. The biggest declivity was a 26% death rattle for Resorts Atlantic City (just under $13 million and well into last place). Mohegan Sun needs to find a new playbook for that casino. Golden Nugget had no reason to be smug, toppling 23.5% percent to $15.5 million.

Sports betting continued to be a ray of sunshine, with $314 million wagered, thanks to a perfect storm of early baseball season, NBA playoffs and NHL playoffs. “The New Jersey market has differentiated itself from Nevada in a number of ways, so it is not surprising that baseball drew more interest relative to overall handle in the Garden State. New Jersey’s proximity to New York and Philadelphia, each with some of the largest baseball fanbases in the country, certainly helps drive interest at sportsbooks,” said PlayNJ.com analyst Dustin Gouker.

FanDuel Sportsbook at The Meadowlands was tops in walk-up revenue, with over $3 million and nobody else even close. FanDuel and Resorts/DraftKings duked it out for the Internet market, $9 million to $5 million. It’s FoxBet in, BetStars out at Resorts Digital, as the broadcasting mammoth wades into sports wagering. “The effect of online sports betting has been profound,” said columnist Steve Ruddock. “It infused new energy in gamblers and new investment into online casinos. Because of that growth [of online casinos] has actually accelerated significantly.” Internet casinos and poker were up 59% from last year at this time, a hopeful metric during T.S. Eliot‘s cruelest month.

* Bad news for MGM Resorts International: singer Britney Spears might not return to Park MGM now or ever. Spears’ residency was aborted before takeoff due to her father’s health issues. The matter of her conservatorship has also been riled in court. Nor does it help that Spears’ most vocal backers include Courtney Love—hardly a model for stable behavior herself. Said manager Larry Rudolph, “from what I have gathered it’s clear to me she should not be going back to do this Vegas residency, not in the near future and possibly never again … She hasn’t called me in months.” For her part, Spears sent a message to fans promising “don’t worry, I will be back very soon.” Whether that “very soon” includes Park MGM remains to be seen, although the resort has proven adept at finding headliners to fill the Spears void.

* Pennsylvania casinos reported slot revenues at the Keystone State continues to manifest signs of saturation, down 3%. Only Rivers Casino ($25 million, up 3.5%) and Valley Forge Resort Casino ($8 million, up 2%) were revenue-positive. SugarHouse was flat at $15.5 million. As for other Philadelphia casinos, Harrah’s Philadelphia dropped 9% to $16 million and Parx Casino slipped 2%, still good for a state-leading $35 million. Sands Bethlehem booked $25 million on 4% less win, Mohegan Sun at Pocono Downs banked $16.5 million on 5% less and Mount Airy logged $12 million despite a 6% decline. Hollywood Casino (-5%) and The Meadows (-2%) led the racinos with $17.5 million each, while Presque Isle Downs grossed $10 million, down 3.5%. Lady Luck Nemacolin was still alive with $2 million, a 4.5% dip almost being cause for celebration.

* Meanwhile in Detroit, April was good for business, led by MGM Grand Detroit with $59 million (+2%), MotorCity with $49 million (flat) and Greektown Casino ($32 million), up 3%. It’s no wonder that Penn National Gaming is coming into this market and if its competitors (other than MGM and Caesars, precluded by statute) aren’t making overtures to MotorCity they should be.