September Strip Revenue

The Vegas strip gaming revenue is still headed upwards (slowly) and is now 4.4% above the low last October. The dip in the previous two years from the high was 21%.

Sep-10	$5,729,066,000	4.4%
Oct-09	$5,486,118,000	-21.0%
Oct-07	$6,945,450,000	high

Atlantic City looks like it will drop from $3.9 billion in 2009 to under $3.6 billion in 2010. It looks like the two casinos in Singapore will easily beat that in their first full year of operations.

I am not sure where the bottom is in Atlantic city.

Quote: pacomartin

I am not sure where the bottom is in Atlantic city.

Go out on the boardwalk, face east. Start walking, you'll find the bottom.

3.9
-3.6
0.3 Billion. How much is 0.3 Billion in real dollars after having been divvied up amongst a whole bunch of selfish joints?

Anybody think an Atlantic City casino gonna notice it? I mean its not as if some customer tried to beat them out of their valet parking fee or anything real serious like that!

Quote: FleaStiff

3.9
-3.6
0.3 Billion. How much is 0.3 Billion in real dollars after having been divvied up amongst a whole bunch of selfish joints?

Anybody think an Atlantic City casino gonna notice it? I mean its not as if some customer tried to beat them out of their valet parking fee or anything real serious like that!

Well the bigger picture is:

$3,584,342 2010 estimate
$3,943,171 2009
$4,544,961 2008
$4,920,787 2007
$5,217,714 2006


That amounts to -31.30% over 4 years. That is considerably worse than the Vegas Strip losing -21% over 2 years, and then bouncing back 4.4% since then. Of course, not much money went into AC in the last four years, while Vegas corporations sank some serious coin into new hotel towers, new casino buildings, and renovations in the last few years.


Another way to look at it is the revenue drop in four years is about the same as the total current revenue of the smallest 7 (out of 11) casinos in Atlantic City.

Another thing about those numbers is that if you lose x%, then recover x%, you're not actually back to even.

Quote: FleaStiff

3.9
-3.6
0.3 Billion. How much is 0.3 Billion in real dollars after having been divvied up amongst a whole bunch of selfish joints?

Anybody think an Atlantic City casino gonna notice it? I mean its not as if some customer tried to beat them out of their valet parking fee or anything real serious like that!

I'd guess no more than you missing out on 10% of your take home pay...

What may be concerning is that if player conditions have worsened, but the take climbs back up, will those conditions get better again?

How much of that gain from the loss of value (are visitor numbers up, or is the per visitor spend up)?

Numbers of visitors dropped far less than gaming revenue or non-gaming revenue. From CY2007 to CY2009 visitors dropped -7.26% and is up +2.4% for the first 9 months of 2010.

Vegas drops the room rate to keep the hotels full, but don't forget the number of rooms increased by 11.6%. And most of the new rooms are very expensive.

Quote: thecesspit

What may be concerning is that if player conditions have worsened, but the take climbs back up, will those conditions get better again?

I don't know.
What are player conditions?
You mean the casinos have to change from 6:5?
You mean table minimums?
You mean physical safety? Parking? Transit time? Infrastructure?

Vegas doesn't make much changes to that freeway between Los Angeles and Vegas. That darned airport keeps getting worse, not better. Same with all them other airports. Hotel Rates keep changing and so do the ads about them. The annoyance level with the hotel rates never changes though. Vegas ain't been changing player conditions much really: there are the same flashing lights, the same bells and the same whistles. Some of the hookers have gotten older; some of the hookers have gotten younger. Vegas changed the names of some of the clubs and bands a bit, but its still the same. Vegas changed the names and locations at which some Hollywood Starlet splashed in the headlines, but all those coked-up, half naked glitterati are interchangeable anyway.