The Short Take:
- Atlantic City’s city-wide slot wins increased by 5.3% in October
- Every legacy casino saw year-over-year decreases in slot wins in October due in large part to the arrival of Hard Rock and Ocean Resort on the scene
- Borgata, as usual, had the highest slot wins with $33.8 million. Ocean Resort had the lowest with $8.2 million in slot wins
- On a year-over-year growth basis, Harrah’s performed the worst, with its slot wins sliding 17.8% YoY
While the city-wide total casino slot wins increased by 5.3% in October 2018 versus October 2017, the majority of casinos are not seeing this as good news.
The introduction of Hard Rock and Ocean Resort caused the slot wins at all of the other legacy casinos to drop dramatically. In fact, every single legacy casino saw their slot wins decrease. This decrease in slot wins for the legacy casinos is very similar to their drop total casino wins that we discussed in an earlier article.
Among the legacy casinos, Golden Nugget fared the best, but the Marina casino still saw its October slot wins decrease by 1.5% compared to October 2017. Tropicana, Resorts and Bally’s had moderate YoY declines in their slot wins, ranging from the mid to high single digits. The real losers were Caesars (down 15.0%), the seminal AC leader Borgata (down 15.5%) and Harrah’s (down 17.8%).
While Borgata’s slot wins were down 15.5% year-over-year, it is still the leader in Atlantic City. Its October slot wins of $33.8 million were almost $14 million more than the second place Tropicana which won $19.9 million from its slots.
The chart below shows the October 2018 slot wins for each Atlantic City casino on the left compared to the October 2017 wins on the right.
The new guys in town had mixed results. Hard Rock was ranked fourth in total slot wins in October. Its $15.1 million placed it between Harrah’s $18.3 million and Caesars’ $14.1 million. Ocean Resort, on the other hand, came in last in slot wins. Its $8.2 million was more than a million less than Bally’s $9.5 million in slot wins.
As we can see, the expansion of gambling in Atlantic City, especially the opening of the Hard Rock, is taking its toll on the legacy casinos. Even though the broad market is increasing, with city-wide slot wins up over 5% YoY, that increase is being absorbed, and then some, by the Boardwalk’s two new casinos.