The Short Take:
- October total casino wins city-wide increased 8.0% year-over-year in Atlantic City, coming in at over $200.6 million
- The two newcomers in town, Hard Rock and Ocean Resort, had combined casino wins of $36.3 million in October
- All of the legacy casinos saw their casino wins YoY growth rates in negative territory with the exception of Tropicana
- Ocean Resort had the lowest casino win in Atlantic City while Harrah’s had the largest decline on a year-over-year basis
October 2018 saw an 8.0% increase in total casino wins at Atlantic City casinos, versus the wins in October 2017. But for the legacy casinos, the openings of Hard Rock and Ocean Resort spelled trouble.
Casino wins for all Atlantic City casinos surpassed $200.6 million for October 2018. Compared to October 2017’s $185.8 million, AC saw its casino wins increase by 8.0%. The newcomers on the scene, Hard Rock and Ocean Resort, had a combined $36.3 million in wins for the month. These wins definitely came at the expense of the legacy casinos in town.
In fact, all but one legacy casino had significant year-over-year decreases in casino wins. The only casino to show positive YoY wins was Tropicana. The Trop’s monthly wins increased by just 2.1% compared to October 2017. Resorts, Borgata and the Golden Nugget had YoY casino wins drop in the high single digits.
The three worst performing Atlantic City casinos based on year-over-year declines in casino wins were the three properties owned by Caesars Entertainment (CZR). Bally’s saw a decrease of 14.7% while Caesars’ casino wins dropped 21.4% YoY. Harrah’s was the worst performer in town. Its casino wins fell 21.7% in October 2018 compared to October 2017.
Here’s a look at the year-over-year growth rates at all of the legacy casinos. Hard Rock and Ocean Resort are not in this chart because they were not in business in October 2017.
The chart below shows the clear downward spiral of casino wins for each legacy Atlantic City casino since Hard Rock and Ocean Resort entered the scene. The left side of the chart shows the total casino wins for each casino in October 2018 while the right side shows the same for October 2017, one year earlier.
Borgata is still, by far, the clear leader in the city. Its $50.7 million in casino wins in October was more than double the next closest casino, the Tropicana, which had $25.2 million in wins. While Harrah’s casino win fell 21.7% YoY, it is still ranked third in Atlantic City with $23.8 million. Harrah’s just barely beat out Hard Rock’s $23.2 million in casino wins.
While Hard Rock is making a splash in the Atlantic City casino scene, Ocean Resort is not performing nearly as well. Ocean Resort was dead last in total casino wins in October in Atlantic City. It’s $13.1 million in wins was $700 thousand less than the much smaller Resorts and $1.3 million less than Bally’s.
While it is great that casino wins city-wide increased by 8% in October, the legacy casinos definitely have their work cut out for them to make sure that Hard Rock and Ocean Resort don’t continue to eat into their casino business.