Sports, Internet buoy Atlantic City; Detroit struggles

As we predicted, Atlantic City is coming back faster than Las Vegas. It doesn’t hurt that it is not A) primarily a destination market; B) dependent upon conventions; C) reliant upon international travel; or D) at the mercy of the airlines. All that being said, a 15% decline in September for a gross of $190.5 million isn’t that bad. Sports betting netted $45 million and Internet gaming another $87.5 million. Wrote JP Morgan analyst Joseph Greff, “Casino revenues were pressured by capacity limits and restrictions on F&B offerings.” Table revenues collapsed, it is true, -25.5% while slots were down 9.5%. Borgata was hit hard, falling 31% as table win cratered -49% and slots tumbled -19%. The megaresort is tracking well behind Greff’s projections for last quarter. The Caesars Entertainment quartet slipped 17%, with 16% less slot win and a 20% plunge at the tables. In contrast to Borgata, the CZR foursome is tracking considerably ahead of JP Morgan’s forecast.

The only revenue-positive property was Ocean Casino Resort, rising 27% to $26 million. (And to think that its predecessor, Revel, was such a butt of mockery.) Borgata held onto first place with almost $40 million, Hard Rock Atlantic City ceded little ground (-3.5%), holding onto $28.5 million and second place. Other than Ocean, the steadiest performer was Caesars Atlantic City, down only 2% to $19 million. Harrah’s Resort won $19.5 million but slid 26.5% while Tropicana grossed $20 million on a 22.5% decline. Bally’s, which faces an uncertain future (see below), won $13 million, down 12.5%. Resorts Atlantic City edged ahead of Bally’s with $14 million and a 7% dip while Golden Nugget slid into last place with a 29.5% declivity and $11.5 million gross.