{"id":24779,"date":"2019-08-26T11:06:41","date_gmt":"2019-08-26T19:06:41","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=24779"},"modified":"2022-10-28T06:33:09","modified_gmt":"2022-10-28T14:33:09","slug":"less-profit-in-atlantic-city-new-boss-in-macao","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/less-profit-in-atlantic-city-new-boss-in-macao\/","title":{"rendered":"Less profit in Atlantic City; New boss in Macao"},"content":{"rendered":"

To no one’s great surprise, it was less profitable to operate a casino in Atlantic City<\/strong> during 2019. Some, like Hard Rock Atlantic City<\/strong> \"\"(surprisingly) lost money, then turned profitable. Others, like Resorts Atlantic City<\/strong>, were just making ends meet. Still others, like Harrah’s Resort<\/strong>, were doing respectably and Borgata<\/strong> was making money hand over first. Ocean Casino Resort<\/strong> was the only bleeding red ink all year to date. (Guess they’re not going to build that second hotel tower after all.) For the industry as a whole, operating profits were down 7%<\/a> during 2Q19. The addition of two new casinos translated into $11.5 million less operating income. The results ratify what we already knew: That the Atlantic City market hasn’t grown with the expansion of the casino population.<\/p>\n

New Jersey Casino Control Commission<\/strong> Chairman\u00a0James Plousis<\/strong> found a silver lining in the numbers, noting that net revenue was up 18%, making for five consecutive quarters of growth in that category.\u00a0\u201cResults from individual casinos show the market was still adjusting to the new level of \"\"competition through the second quarter.\u00a0Next quarter will provide an opportunity to compare year-over-year results in Atlantic City\u2019s nine-casino market,\u201d ran Plousis’ official statement. Ocean executives claimed to be pleased with their anemic numbers, adding that 2Q19\u00a0\u201cwould have been even better but for several large table games winners in the quarter.\u201d That’s why it’s gambling, not ‘gaming.’<\/p>\n

Casino.org<\/strong> suggested with a straight face that the Boardwalk “could be oversaturated.” To make its case it cited a 22% profit shrinkage at Resorts, 32% at Bally’s and 27% at Caesars. Not even fair-haired boys Harrah’s Resort (-32%) and the Golden Nugget<\/strong> (-19%) were exempt. In the meantime, the boffins are saying “Diversification is a must” for Atlantic City. No sh!t, Sherlock.<\/p>\n

*\u00a0In a similar vein, it came as no surprise that Beijing<\/strong> stooge\u00a0Ho Iat-seng<\/strong> was tapped as the new chief executive of Macao<\/strong>. This was seen coming from far away. As ABC News<\/strong> put it, “Residents of [Macao]\u00a0can elect some politicians, but the top leader is handpicked by members of an elite committee \"\"who fall in line with the wishes of China<\/strong>‘s communist leaders.” Only eight members of a 400-person governing body dared vote against Beijing’s choice. At age 62, Iat-seng may not be a long-range choice but he’s young enough to be around for the rebidding of casino concessions three years hence.\u00a0“The protests against the extradition bill will end,” he said ominously of the unrest currently roiling Hong Kong<\/strong>. Except for rallies by\u00a0casino employees protesting pay and guest labor, you don’t see much political tumult in Macao. That’s the way the central government likes it.<\/p>\n

* Are casinos marketing to Latino patrons? We know they’re a bulwark of Circus Circus<\/strong>. But what about more upscale properties? According to casino consultant Julia Carcamo<\/strong>, Latinos are on the verge of becoming the multicultural majority of 18 year olds. That still gives the casino industry three years to work \"\"on its marketing pitch. Adds Carcamo, “Upscale Latinos (earning over $40,000) represent 60% of the total Hispanic households, representing 40% of the segment\u2019s buying power.” That should be music to Big Gaming’s ears. A buying power of $1.4 trillion is not to be ignored. That’s more than the gross domestic product of Mexico<\/strong>. Broad generalities aside, Carcamo also delves into specifics, such as, “advertising in Spanish\u00a0still matters, even among English-dominant Hispanics. Emotional ties to the Spanish language that carry over to companies that advertise in Spanish, ultimately driving purchase decisions and brand loyalty.” In other words, just having a Chinese-marketing team isn’t going to cut it. As Carcamo puts it, there’s a significant difference between actually connecting with your Latino customers and “Hispandering.”<\/p>\n

*\u00a0DraftKings<\/strong> continues to dominate<\/a> the sports-betting market, wrapping up a deal with the Wild Rose<\/strong> casino chain in Iowa<\/strong>. In addition to mobile wagering, DraftKings will operate sports books in Wild Rose casinos in\u00a0Clinton<\/strong>, Emmetsburg<\/strong> and Jefferson<\/strong>. Wild Rose COO Tom Timmons<\/strong> said sports betting is “the most energizing change in Iowa gaming since the slot \"\"machine.\u201d Not unlike Nevada<\/strong>, Iowa requires bettors to register in person at a casino before they can wager online, a regulation that sunsets on January 1, 2021. This is not regarded as a sizable impediment to the market.\u00a0\u201cWe couldn\u2019t be more excited to be the first Iowa casino company to partner with DraftKings, which we view as the most recognizable name in sports gaming,\u201d enthused Timmons. With 11 more Hawkeye State casinos approved for sports betting, DraftKings has many potential conquests still in play.<\/p>\n","protected":false},"excerpt":{"rendered":"

To no one’s great surprise, it was less profitable to operate a casino in Atlantic City during 2019. Some, like Hard Rock Atlantic City (surprisingly) lost money, then turned profitable. Others, like Resorts Atlantic City, were just making ends meet. … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[23,244,165,86,62,53,245,167,257,33,243,129],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/24779"}],"collection":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/comments?post=24779"}],"version-history":[{"count":4,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/24779\/revisions"}],"predecessor-version":[{"id":31822,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/24779\/revisions\/31822"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=24779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=24779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=24779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}