Atlantic City casino revenue down 10 percent in May
down 10% from last May.
the long slide continues.
Revel didn't even win $14M.
prediction: Revel:doomed.
casino win may 2012:
Borgata 50,011,418
Harrah's 34,063,787
Caesars 30,438,149
Bally's 26,034,880
Trump Taj Mahal 25,035,311
Tropicana 22,939,299
Showboat 18,922,504
Revel 13,930,808
Golden Nugget 10,844,730
Atlantic Club 10,710,811
Resorts 10,578,024
Trump Plaza 9,499,057
Atlantic City casino revenue down 10 percent in May
Quote: WongBo
casino win may 2012:
Borgata 50,011,418
Harrah's 34,063,787
Caesars 30,438,149
Bally's 26,034,880
Trump Taj Mahal 25,035,311
Tropicana 22,939,299
Showboat 18,922,504
Revel 13,930,808
Golden Nugget 10,844,730
Atlantic Club 10,710,811
Resorts 10,578,024
Trump Plaza 9,499,057
Some interesting notes that I'd like to point out, with personal commentary thrown in...
1) Atlantic Club is NOT last- The appeal of "locals casino" may actually be paying off. They are card matching, giving free play and FREE PARKING ALL THE TIME! Obviously these are the steps that had to happen, but I wonder if more casinos followed this format how they would be doing.
2) Borgata is the ONLY viable casino in AC- Why? Probably a mix of good games, great setting, fantastic vibe and commitment to the players. Revel should have taken its toll on this property second-most (next to Showboat) and it didn't do much.
3) Showboat is on CET's chopping block- I'm staying here currently and there are small things that indicate that CET is ready to sell to the highest bidder. They have new, VERY sterile $1 chips that resemble Trump chips. I can't think of any group interested in this property, but as soon as they can unload it, it's gone.
4) Revel is not "player friendly" yet- I got my new level 3 card, with $50 free slot play (Great!). Then I went to play PGP and didn't get my card rated for 20 minutes. I left, spoke with the supervisor, who berated me for confronting him about it (yeah, I was angry, but rightfully so as there was no explanation to me at the table as to why my card sat there). Apparently they were having entry issues, but to not even acknowledge that to the waiting cards is ridiculous. I'm glad some people really like this casino, because it won't stand a chance with poor customer service... not one chance!
5) There will be no viable buyer for Trump Plaza- With numbers like that, they have to make an appeal, and it's not happening. It's a great location but that won't save it. I'm not even sure it's a fixer-upper at this point. I give it another 2 years and it's done.
Quote: TiltpoulShowboat is on CET's chopping block- I'm staying here currently and there are small things that indicate that CET is ready to sell to the highest bidder.
That pet-friendly program may be hurting more than it's helping. But the boat is still beating the big new glossy guy in town right next door to it.
Quote: TiltpoulRevel is not "player friendly" yet- I got my new level 3 card, with $50 free slot play (Great!). Then I went to play PGP and didn't get my card rated for 20 minutes. I left, spoke with the supervisor, who berated me for confronting him about it (yeah, I was angry, but rightfully so as there was no explanation to me at the table as to why my card sat there). Apparently they were having entry issues, but to not even acknowledge that to the waiting cards is ridiculous. I'm glad some people really like this casino, because it won't stand a chance with poor customer service... not one chance!
Most of the staff seems to be trying to be really pleasant and courteous. But it's so big, the place is having an extended shakedown.
Quote: FatGeezusSince all the casinos are not equal in size, slots, and table games, I would be more interested in knowing what was the win per square foot.
That statistic doesn't reveal much. Many casinos jam slot machines into the floor, while other leave huge amounts of space. Revenue per square feet is more meaningful with regard to grocery stores.
The most important point is that the slot revenue at REVEL is horrific. Earnings in May were just barely 2nd from the bottom, just ahead of Trump Plaza (by 3.5%) which is a casino that has essentially been abandoned.
So your rank and file slot player is not playing at REVEL at all.
Quote: pacomartinSo your rank and file slot player is not playing at REVEL at all.
I'm not surprised by this. When I went there at around 7am on Monday, I think I saw about 4 players playing machines. These were younger players who probably were still drunk from the night before.
Considering they just started a serious approach to their player's club, this isn't surprising. The place looks and feels like Cosmopolitan, without the constant stream of friendliness. From a layout perspective, I'm not sure slot players are going to respond either. It's hard to explain the layout, but I could see where it's not appealing to the average slot player.
Quote: FatGeezusSince all the casinos are not equal in size, slots, and table games, I would be more interested in knowing what was the win per square foot.
Casino: Approved Square Footage:
Atlantic Club 75,416
Bally's 104,646
Borgata 136,667
Caesars 111,812
Golden Nugget 70,250
Harrah's 178,344
Resorts 97,707
Revel 130,000
Showboat 122,454
Tropicana 136,980
Trump Plaza 86,923
Trump Taj Mahal 149,239
Casino win (May 2012) per square Foot ($):
Borgata 365.93
Caesars 272.22
Bally's 248.79
Harrah's 191
Trump Taj Mahal 167.75
Tropicana 167.46
Showboat 154.52
Golden Nugget 154.37
Atlantic Club 142.02
Trump Plaza 109.28
Resorts 108.26
Revel 107.16
this is just the average based on gaming floor size.
does not take into account the number and types of slots and tables.
Quote: WongBoCasino: Approved Square Footage:
Atlantic Club 75,416
Revel 130,000
Casino win per sq. foot:
Atlantic Club 142.02
Revel 107.16
After a late trip there yesterday, I have to say I'm impressed with Atlantic Club. It's not perfect; there's still a LOT of problems with the place, but they are making an effort to serve an under-served market in the area, and that's admirable. The $/sq. foot and not being last place last month shows the effort is paying off, somewhat. If they continue on the path, I would have to take them off the watch list and move them up to the bottom tier properties. Clean it up enough, and you could potentially have an outsider with "locals" experience come in and scoop it up at a discount price (i.e. Station who won't do it, but you get the idea).
I think it's interesting that Revel just can't it together. It reminds me a lot of Cosmopolitan, except without all the sexy people, trendy nightclubs and interest level in the property. I could see Penn making a bid for the property and turning it into another M Resort (which both would eventually become a Hollywood). I don't think Penn wants anything in AC, so I know its a long shot, but if it happened, I would honestly not be surprised.
Quote: TiltpoulI could see Penn making a bid for the property and turning it into another M Resort (which both would eventually become a Hollywood). I don't think Penn wants anything in AC, so I know its a long shot, but if it happened, I would honestly not be surprised.
Penn National bought half interest in Freehold Raceway in Monmouth County in NJ in 1999.
Penn doesn't "want" anything in Atlantic City, but they will buy anything at the right price. With four properties within driving distance of Atlantic City, they should be able to build some brand loyalty, and offer trips to AC as incentives.
Hollywood Casino at Charles Town Races Charles Town, West Virginia
Hollywood Casino at Penn National Race Course, Grantville, Pennsylvania
Hollywood Casino Perryville, Perryville, MD
Freehold Raceway, Freehold Borough, New Jersey
Will Ceasars Entertainment buy the property? I know the Commission has an obligation to see that no single company controls more than half of the gaming revenue from Atlantic City, but Ceasars controlled 41.62% in May. These initial numbers from Revel are so anemic that combined it would be 46.91%.
I don't think the Commission can makel a company sell an asset if after it is bought, the company revenue goes up over 50%.
Quote: TiltpoulSome interesting notes that I'd like to point out, with personal commentary thrown in...
4) Revel is not "player friendly" yet- I got my new level 3 card, with $50 free slot play (Great!). Then I went to play PGP and didn't get my card rated for 20 minutes. I left, spoke with the supervisor, who berated me for confronting him about it (yeah, I was angry, but rightfully so as there was no explanation to me at the table as to why my card sat there). Apparently they were having entry issues, but to not even acknowledge that to the waiting cards is ridiculous. I'm glad some people really like this casino, because it won't stand a chance with poor customer service... not one chance!
The Revel suck. I went there and asked for the name of the DTG. The pit manager did not know and directed me to the security desk. The clerk was not able to find the information and called the head security. He asked me who I was and what I wanted. After I explained to him, he told me he was not able to give out this information. Explained to him the pit sent me here to find out. Still same b.s.
Few weeks later, I got my free $50 slot play and cashed out $45. They wouldn't see any of that ever! Casinos are dime a dozen and until Revel caters to players, there is no reason for anyone to go there. By the time they realize this, it may be too late.
Quote: pacomartinPenn doesn't "want" anything in Atlantic City, but they will buy anything at the right price. With four properties within driving distance of Atlantic City, they should be able to build some brand loyalty, and offer trips to AC as incentives.
I agree with that. However, if Revel were cheap enough, they would buy it up. The casino fits their profile and would give them a footprint in a dying market. Besides, what other property would they be interested in? All the rest would be too hard to convert to Hollywood or doesn't fit their profile.
Quote: pacomartinWill Ceasars Entertainment buy the property? I know the Commission has an obligation to see that no single company controls more than half of the gaming revenue from Atlantic City, but Ceasars controlled 41.62% in May. These initial numbers from Revel are so anemic that combined it would be 46.91%.
I don't think the Commission can makel a company sell an asset if after it is bought, the company revenue goes up over 50%.
Why do you believe CET would be interested in Revel? It wouldn't give them anything they need, and I'd wager a small amount of money that they will try to Showboat if they can find any buyer.
Quote: TiltpoulWhy do you believe CET would be interested in Revel? It wouldn't give them anything they need, and I'd wager a small amount of money that they will try to Showboat if they can find any buyer.
Everyone needs brand new construction , especially if you can get it for pennies on the dollar. I don't think they will sell Showboat, even though it is the smallest of their four casinos.
Quote: pacomartinEveryone needs brand new construction , especially if you can get it for pennies on the dollar. I don't think they will sell Showboat, even though it is the smallest of their four casinos.
CET is going to need a large influx of cash very soon. They are now in cahoots to try to land a huge casino in East Boston at the racetrack. It'll be a partnership, but from what I understand they will own the casino. Besides, they barely have the money to cover the interest payments on their properties.
I predict the following properties are on the chopping block in the next few years (in no particular order):
Showboat AC- Doesn't fit in with their current theming, and smallest AC casino
Harrah's Metropolis- Where do I begin with all the problems here...
Harrah's Joliet- They could sell this as a package deal with Harrah's Metropolis. It may have some value still...
Harrah's Council Bluffs- They don't need it with Horseshoe, and convention business is gone now...
Harrah's NKC- Why they didn't package this with St Louis I'll never know (except Penn doesn't need a third KC property)
Harrah's Reno- Nothing's going on Reno these days
Rio Las Vegas- Doesn't add any value to the brand, just room inventory
Unfortunately, none of those properties are an easy sell. There's also nobody buying casinos up, except Penn, and they really have nothing to gain with any of those properties, except possibly Showboat, but as discussed, they're more likely to pick up Revel at a bargain price.
Quote: TiltpoulCET is going to need a large influx of cash very soon. They are now in cahoots to try to land a huge casino in East Boston at the racetrack. It'll be a partnership, but from what I understand they will own the casino. Besides, they barely have the money to cover the interest payments on their properties.
CET tried pretty hard to sell the Rio a few years ago as it was geographically separate from the other strip properties. They rejected all the lowball properties. Most people thought that Penn Gaming would come into the market in the Rio.
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NJ took in $76m revenue for table games for May. PA releases it's May table games revenue either tomorrow or Monday. Sooner or later PA should beat NJ in table games. So far PA has peaked at $62m, so I think it is a long shot that it will be this month. But since NJ just keeps dropping month after month, I think it might be sometime this year.
Those number are starting to sound really small with Sands Corporation taking in over a billion dollars a month in revenue.
Quote: pacomartinNJ took in $76m revenue for table games for May. PA releases it's May table games revenue either tomorrow or Monday. Sooner or later PA should beat NJ in table games. So far PA has peaked at $62m, so I think it is a long shot that it will be this month. But since NJ just keeps dropping month after month, I think it might be sometime this year.
Well once again PA didn't come close to NJ for table revenue.
So far in 2012 PA has earned $283 million on table games. NJ (not counting Borgata) made $274 million, but the Borgata has pulled in $87 million on table games so far this year.
It isn't clear if the PA model for gambling can produce a casino with the kind of table revenue of the Borgata. It does seem as if Sands PA is the most likely casino complex to do it, but they are still a long way away.
In terms of slot revenue, Pennsylvania's PARX outside of Philadelphia has equaled Borgata's $169 million for this fiscal year. Overall the slot revenue in PA is now well over NJ. With Pennsylvania's larger population and better distribution of slot machines it seems as if that contest is irrevocably decided. Slot revenue goes to the most convenient location.
Quote: pacomartinIn terms of slot revenue, Pennsylvania's PARX outside of Philadelphia has equaled Borgata's $169 million for this fiscal year. Overall the slot revenue in PA is now well over NJ. With Pennsylvania's larger population and better distribution of slot machines it seems as if that contest is irrevocably decided. Slot revenue goes to the most convenient location.
Its simply that casinos are now widely available and no longer is a destination such as Atlantic City offering all that much. The State of NJ had a great revenue stream for awhile but didn't want to share it with Atlantic City. Now that "golden goose" is gone and no miracle of management is going to bring customers past other casinos to get to Atlantic City.
New Yorkers are not going to go to Atlantic City to stand three deep at the BJ tables. Those days are over. Oh sure there will still be some tourism and travel stuff, but in reality all of Atlantic City casinos are somewhat of a sideshow now.
Why should Californians trek to Reno with all those Indian casinos along the path? Reno is no longer a "destination" its a locals market.
Why should New Yorkers trek to Atlantic City with all those other casinos offering just about the same only closer?
Just think what could have been. SIGH
Quote: FleaStiffWhy should Californians trek to Reno with all those Indian casinos along the path? Reno is no longer a "destination" its a locals market.
Why should New Yorkers trek to Atlantic City with all those other casinos offering just about the same only closer?
Looking at PA table revenue for the first 23 months of operations, it seems as if you peak pretty quickly. The overall improvement for the year will look pretty good since the start-up numbers are very low.
I think that there won't be much improvement next year. I wouldn't think that they would catch NJ at all, except that NJ just keeps dropping year after year.
PA table game revenue over first 23 months
| Month | Millions | Millions |
|---|---|---|
| jul | $18 | $55 |
| aug | $35 | $54 |
| sep | $37 | $51 |
| oct | $41 | $53 |
| nov | $39 | $54 |
| dec | $44 | $56 |
| jan | $43 | $53 |
| feb | $44 | $57 |
| mar | $55 | $62 |
| apr | $53 | $56 |
| may | $51 | $55 |
| jun | $49 |
The largest fine, $91,236, was imposed on the Taj Mahal, which admitted that on Dec. 10, 2011, it failed to shuffle eight decks of cards before using them at a mini-baccarat game.
Quote: FleaStiffNon Shuffled cards at Mini Bacc... how is it the casino didn't notice. I bet the players noticed!!
The largest fine, $91,236, was imposed on the Taj Mahal, which admitted that on Dec. 10, 2011, it failed to shuffle eight decks of cards before using them at a mini-baccarat game.
I asked that once at a casino that required every deck be checked before the cards went into a shoe, regardless of the fact they had an automatic shuffler.
Apparently, with the 2 decks used on automatic machines, it's easy to get distracted, think you put the cards in there, and pull out the same deck. I thought the machines had a built-in function to prevent that, but you do have to be a hair smarter than the machine. If you forget, you could pull the same cards back out. Given the penetration of baccarat, that's a huge blow to a game.
