Sports wagering, ‘Net bets power New Jersey; Slow month in Pennsylvania

Despite being 7% down on a same-store basis, Atlantic City casino revenues grew 14% last month. The $236 million gross represents a 3.5% downturn in slot winnings (down 8.5% same-store) but a 26% jump at the tables (down 3.5% same-store). At Borgata ($65 million), revenues were up 6.5%, including a 24% vault at the tables and despite win at the slots on 6% less coin-in. Unlike other Atlantic City casinos, the Caesars Entertainment trio got creamed at the tables (-21%) while slots slid 7% on 10.5% less coin-in. Leaving aside Hard Rock Atlantic City and Ocean Resort, for which no year/year comparisons were made available, Borgata had the only revenue-positive month. Hard Rock continues to solidify its new grasp on second place with $30 million, while Tropicana Atlantic City faded to $26 million, down 16%. (Eldorado Resorts better get a grip on things before this fade is out of hand.) Harrah’s Resort ($24.5 million) took a 17% knock and Golden Nugget got slammed, down 23% to $16 million. The upside for the Nugget is that it is soon to be making more from Internet gambling than terrestrial play, according to Global Gaming Business, which pointed to Tilman Fertitta‘s plethora of platforms for online play. “If you look at Atlantic City, there isn’t a clear indication that this online gambling revenue is coming at the expense of retail revenue,” said analyst Chris Grove. “If anything, it seems to be almost wholly additive to retail revenue.” So much for Sheldon Adelson‘s bogeyman talk about cannibalization.

Caesars Atlantic City was only 6% off its feed, at $23 million, while Bally’s tried to make a case for its continued survival pace Eldorado with a $16 million gross (incrementally better than the Nugget and Resorts Atlantic City), down 8%. Ocean Resort posted a $20 million gross and Resorts brought up the rear with $15.5 million, a 5% slippage. If June needed a silver lining, it was sports betting. “To approach $275 million [in handle] during a month where the only major sports betting event is the NBA Finals says something about the trajectory of New Jersey’s market,” quoth PlayNJ.com analyst Dustin Gouker. Sequentially, that was a 14% downturn from May. Continued Gouker, “The rate of growth will eventually level out, but I do not believe that time is at hand … Competition from the launch of Pennsylvania‘s sports betting apps could slow momentum, though.” FanDuel continued to dominate both online and walk-up business in the Garden State.

* Slot revenue in Pennsylvania was mostly becalmed last month, with the notable exception of Valley Forge Resort Casino, where Boyd Gaming seems to have strapped a rocket to revenue numbers, up 12% (to $8.5 million) in an otherwise slow month. Perennial state leader Parx Casino was flat at $34.5 million, followed at some distance by Wind Creek Bethlehem ($25 million and with 100% less Adelson), up 1%, and Rivers Casino, up 5% to $24 million. Back in the mid-teens were Meadows Racetrack ($17.5 million, -7%), Hollywood Casino ($17 million, -2%), Harrah’s Philadelphia ($16 million, -5%), Mohegan Sun at Pocono Downs ($16 million, flat) and SugarHouse ($15 million, +2%). That left Presque Isle Downs ($10 million, -4%) and, if anybody cares, Lady Luck Nemacolin with $2.5 million.

* Last weekend we caught Rocketman on the second-run rebound. I’m not sure why audiences avoided a film about Elton John (my favorite Las Vegas Strip headliner) in droves when they had flocked to Bohemian Rhapsody. Did the mix of biopic and musical comedy (a sort of magical-realism stew) put them off? Whatever the case, this movie sank like a stone, taking a fine lead performance from Taron Egerton with it.