The Short Take:
- Caesars Entertainment’s three Atlantic City casinos have seen their casino wins decline month after month
- In October 2018, the year-over-year decline in total casino revenues totaled more than $14.5 million
- All three casinos – Harrah’s, Caesars and Bally’s – saw year-over-year declines in total casino wins, slot wins and table games wins in October
Caesars Entertainment (CZR) has a problem. Specifically, an Atlantic City problem. Casino wins at all three of its AC casinos have been in a serious downtrend, and the arrival of Hard Rock and Ocean Resort is compounding the damage.
In each of the past five months, or about as long as the two new Boardwalk casinos have been in operation, the three Caesars Entertainment properties in Atlantic City have had year-over-year declines in their total casino wins, with the exception of Caesars in August which showed a 0.83% YoY growth. This is very troubling since the competition is just going to get fiercer as Hard Rock grabs market share and the other casinos in town pull out all of the stops to keep their customers.
The October casino data is a great example of what is happening to the CZR casinos in Atlantic City. All three casinos had negative YoY growth for total casino wins, slot wins and table game wins.
Total Casino Wins
The “best” CZR casino in AC in terms of year-over-year total casino wins in October was Bally’s which saw its total wins decline 14.66%. The $14.4 million in total wins in October was $2.4 million less than October 2017.
Caesars and Harrah’s had even more drastic decreases in total casino wins. Caesars’ $20.2 million in wins in October was 21.45% less than a year earlier when the wins totaled $25.7 million. Harrah’s total wins slid even more, falling 21.65% to $23.8 million from $30.4 million a year earlier. This was a year-over-year decline of $6.6 million.
Here’s a look at the total casino wins for each of the three Caesars casinos in Atlantic City for October 2018 and October 2017:
The three casinos did not fare any better with wins from their slot machines. Harrah’s was the worst performing of the three in terms of the annual decline in slot wins. Harrah’s $18.3 million in wins in October was $4 million less than a year earlier. This was a YoY decline of 17.76%
Caesars saw a similar decline in slot wins. Its 15.02% YoY decrease put its October slot wins at $14.1 million. This is $2.5 million less than the $16.6 million Caesars won at its machines in October 2017.
Bally’s had a somewhat smaller YoY decline in slot wins. Its total slot machine wins of $9.5 million was 9.1% less than a year earlier.
Here’s an overview of the three CZR casinos’ slot wins for October 2018 versus October 2017:
Table Games Wins
If the decline in slot wins at the CZR Atlantic City casinos were bad, the table games wins were horrendous! Leading the pack was Caesars which saw its table games wins in October plummet 33.19% versus the same month last year. That is a decline of $3 million, falling from $9.1 million last October to $6.1 million in October 2018.
Harrah’s table games wins declined just slightly less, falling 32.18% YoY. This October’s $5.3 million in table games wins was $2.5 million less than last year’s $7.8 million. Bally’s, meanwhile, saw its table games wins come in at $4.6 million, representing a 23.98% drop from a year earlier.
Here are the October 2018 table games wins versus the 2017 wins for the three CZR casinos:
In total, the three Caesars Entertainment casinos in Atlantic City saw an October year-over-year decrease of total casino wins totaling more than $14.5 million. Will management be able to turn this ship around or will all of the new competition in Atlantic City cause the hemorrhaging to continue? We’ll be keeping an eye on this for you, so check back with Ante Research soon!