New Jersey Casinos & Racetracks Saw Over $12.5 Million Internet Sports Gambling Revenue in September

The Short Take:

  • In the second month since its debut, casinos and racetracks reported over $12.5 million in gross revenue in September
  • Resorts Casino led the pack with over $8.5 million in online sports revenue
  • Atlantic City casinos had over $9.6 million in online sports betting revenue while the two racetracks saw over $2.9 million in revenue
  • In the last two months the state of New Jersey has collected over $2 million in taxes on internet sports betting

In its second month of existence, legal internet sports betting in New Jersey brought in $12,567,785 in online gross revenue in September.  That’s a 302% increase from August when several casinos and racetracks were just getting their internet sports betting sites up and running.

The clear winner in internet sports betting in New Jersey in September was Resorts.  The casino brought in $8,505,940 in online sports betting revenue.  It should be noted that Resorts partnered with fantasy sports leader Draft Kings and it is clearly using its partner’s name recognition and reach to its benefit.

The Meadowlands’ sports internet wagering site was second, with over $2.8 million in revenue. Like Resorts, the Meadowlands has partnered with a leader in fantasy sports: Fan Duel

Here’s a look at the internet sports wagering September revenue for each casino or racetrack site:

NJ Internet Sports Revenue

Resorts held 67.7% of the market share for internet sports betting in September while the Meadowlands had a 22.7% market share.

In total, the five Atlantic City casinos that offer internet sports betting held a 76.7% market share in New Jersey with a combined $9,644,452 in revenue.  The two racetracks (Meadowlands and Monmouth) had a combined $2,923,333 in revenue which equates to 23.3% of the state’s internet sports betting market.

Here’s a look at the September market share for each of the casinos and racetracks that offer internet sports wagering:

NJ Internet Sports Betting Revenue

The September internet sports betting activity was a good thing not just for the casinos and racetracks, but for the state of New Jersey too.  The taxes paid to the state for the month totaled $1,633,311.

So far, since internet sports wagering was first offered in August, the state has collected over $2 million in taxes on over $15.6 million in online sports revenue.

While internet sports betting is growing fast in New Jersey, it is only part of the sports betting available in the state.  Casinos and racetracks also have on-site sports books which brought in over $11 million in September and almost $25 million since sports betting was legalized in New Jersey earlier this year.  Read our coverage of the on-site sports betting September data here.

Here is the list of sports betting websites that officially operated in the state of New Jersey as of the end of September and the affiliated casino or racetrack that operates each:

Ballys: CaesarsCasino.com

Ballys: us.888sport.com

Borgata: playMGM.com

Golden Nugget: PlaySugarHouse.com

Ocean Resort: nj.us.WilliamHill.com

Resorts: SportsBook.DraftKings.com

Resorts: BetStarsNJ.com

Meadowlands: sportsbook.fanduel.com

Monmouth: nj.us.WilliamHill.com

Sports Betting Revenue at New Jersey Casinos and Racetracks Rockets Past $11M in September

The Short Take:

  • The eight New Jersey casinos and racetracks that operate on-site sports books brought in revenue of $11,393,253 in September
  • Leading the pack was the Meadowlands racetrack, followed by the Borgata casino
  • Month-over-month growth of sports betting in casinos and racetracks hit 88% in September compared to August
  • The casino and racetrack sports books paid a total of $969,748 in state taxes in September

Just a handful of months after the Supreme Court greenlighted legal sports betting, September saw casinos and racetracks in New Jersey bring in $11,393,253 of gross revenue. Note: the data in this article does not take into account internet sports betting – for more on internet sports betting in New Jersey, read our article here.

While you would think the Atlantic City casinos would be the hotbed for sports betting, the real action took place further north: the Meadowlands racetrack controlled 38.4% of the state’s sports betting industry with revenue of $4,377,474.

The Borgata’s sports book brought in the second most revenue in September with $2,394,106, or 21.0% of the state’s market. Monmouth, consisting of Darby Dev and William Hill came in third with an 18.8% market share, or $2,138,097 in revenue.

The six Atlantic City casinos with sports books account for less than half of the sports betting revenue in the state during the month (42.8%), with revenue of $4,877,682. The state’s racetracks that offer sports betting controlled 57.2% of the market with revenue of $6,515,571.

Here is a look at the market share of all eight New Jersey properties that have gotten their on-site sports books up and running:

NJ Sports Book Market Share

 

And here is a look at the gross revenue of each of the New Jersey casinos and racetracks that offer on-site sports books:

NJ Sports Books Revenue

Since sports gambling has been legalized in New Jersey the growth has been evident.  September’s on-site sports book revenue grew by 88% compared to August.  While it still trails in revenue compared to the racetracks, in terms of growth Atlantic City is starting to heat up.  September’s sports betting revenue at the city’s casinos grew by 132% when compared to August.  The state’s racetracks saw September monthly growth of less than half of the casinos’, coming in at 64.4%.

The $11,393,253 revenue at casino and racetrack sports books generated just under a million dollars in tax revenue for New Jersey, or $969,748 to be exact!  The Meadowlands paid taxes of $373,530 for the activity in their on-site sports book while the Borgata paid just over $200,000.

Here’s a look at the September tax contribution for all of the state’s on-site sports books:

 

Since sports betting was legalized in New Jersey, casinos and racetracks have seen almost $25 million in revenue from their on-site sports books, bringing the state over $2.1 million in tax revenue.

While on-site sports betting is growing rapidly, it is only part of the story.  New Jersey also allows internet sports betting.  In September over $12 million in revenue was generated through internet sports betting in the state.  Read our full report on New Jersey’s internet sports wagering here.

The future looks bright for New Jersey’s legalized sports betting.  It will definitely be an interesting ride to watch as the pent-up demand for legal sports wagering finally has an outlet in New Jersey!

Overview of Wynn’s Q2 2017 Casino and Room Revenue

Wynn Resorts (WYNN) reported its second quarter 2017 earnings this evening and we will take a dive into the company’s reported casino and room revenue stats.

Casino Revenue

For the second quarter, the company on whole had casino revenue of $1.167 billion, or a 57.0% increase from the second quarter of 2016.  While this seems like an amazing growth rate, it is not an apples to apples comparisons because last year the company’s newest property, the Wynn Palace was not open, so we need to dive into the operating segments to get growth numbers that make sense.

The Wynn Macau brought in $654.7 million in casino revenue in the second quarter which is a solid 7.4% increase from a year ago.  The company’s Las Vegas operations, which include Wynn and Encore, posted a 4.8% increase in casino revenue with $139.3 million in the second quarter.  The Wynn Palace’s total casino revenue contributed $372.2 million in casino revenue, and no year-over-year comparison is available since this property was not open during Q2 2016.



Room Revenue

Company-wide, room revenue brought in $176.2 million in the second quarter of 2017, a 23.3% increase from the same quarter a year earlier, which does not include the Wynn Palace.  Wynn Macau had $25.7 million in room revenue, a 12.2% decrease from Q2 2016.  The Las Vegas operations faired better, posting a 1.3% year-over-year growth rate with $115.1 million in room revenue in the recently reported quarter.  Wynn Palace rang up $35.4 million in room revenue this quarter.

Hotel Occupancy, ADR and REVPAR

While the Wynn Macau saw its occupancy rate increase to 97.5% in Q2 2017 vs 91.5% in Q2 2016, its average daily rate (ADR) and revenue per available room (REVPAR) both decreased double digits.  In the quarter reported today, ADR came in at $258, down 19.6% versus the $321 reported in the second quarter of 2016.  REVPAR slid 14.3%, coming in at $252 in Q2 2017 vs $294 a year earlier.



Wynn’s Las Vegas properties also posted year-over-year occupancy increases.  In the second quarter of 2017 it sold 88.7% of its rooms compared to 85.3% a year earlier.  ADR and REVPAR were a mixed bag.  ADR decreased 1.9% year-over-year with an average daily rate of $302 in 2017 compared to $308 a year earlier.  REVPAR increased by 1.9%: $268 this quarter vs $263 in the same quarter a year ago.

Wynn Palace posted occupancy at 96.2% with ADR of $232 and REVPAR of $224 for the second quarter of 2017.

In after hours trading, WYNN stock is down 3.8% after releasing its Q2 2017 report.


Golden Nugget Had Biggest June Internet Gaming Winning in NJ


The New Jersey internet gaming stats for June 2017 are out, and the Golden Nugget was the runaway winner.

In June, the Golden Nugget, owned privately by Landry’s, had total internet gambling wins of $5,576,526, or 27.6% of the total New Jersey internet winnings.  This was close to two million more than its nearest rival – the Borgata, owned by MGM, which brought in $3,887,240, or 19.2% of the state’s internet winnings, in June. In all, the five AC properties that run internet gambling in New Jersey had internet winnings of $20,233,399.



Here’s a rundown of each casino’s internet winnings for June 2017:

  • Golden Nugget: $5,576,526 (27.6% of NJ internet winnings)
  • Borgata (MGM): $3,887,240 (19.2% of total)
  • Resorts: $3,678,622 (18.2% of total)
  • Caesars (CZR): $3,611,618 (17.8% of total)
  • Tropicana (TPCA): $3,479,393 (17.2% of total)
  • TOTAL: $20,233,399

Not only did the Nugget claim victory in the race for total internet winnings, it blew out the competition in terms of year-over-year winnings growth.  Compared to June 2016, the Golden Nugget’s June 2017 internet winnings represent a massive 57.8% increase.  The next closest year-over-year increase in internet gambling winnings was Resorts at 36.1%. Overall, New Jersey internet gambling winnings increased by 23.4% in June 2017 vs June 2016.

Here’s the year-over-year growth rate for internet gambling winnings in New Jersey:

  • Golden Nugget: 57.8%
  • Resorts: 36.1%
  • Caesars: 18.8%
  • Tropicana: 4.0%
  • Borgata: 2.9%
  • TOTAL: 23.4%

Each AC casino offers internet gambling to people physically located in-state through several websites.  In June the following websites offered casino gambling in New Jersey:


  • Operated by Borgata
    • BorgataCasino.com
    • BorgataPoker.com
    • NJPartyPoker.com
    • PalaCasino.com
  • Operated by Caesars
    • CaesarsCasino.com
    • HarrahsCasino.com
    • WSOP.com
    • 888.com
  • Operated by Golden Nugget
    • GoldenNuggetCasino.com
    • BetFairCasino.com
    • PlaySugarHouse.com
  • Operated by Resorts
    • ResortsCasino.com
    • MoheganSunCasino.com
    • PokerStarsNJ.com
  • Operated by Tropicana
    • Tropicana.com
    • Virgin.com

MGM Resorts Historical Post-Earnings Price Performance

How will MGM’s stock price react to its earnings report on July 27?  We don’t know, but we can gleam some insight by looking at how the stock reacted historically to past earnings announcments.

To do this we looked at the price performance of MGM from the close the day before the announcement date to the close one day after for the last twelve quarters.

Report DateEPS Beat/MissPrice Performance
4/27/1746.2%3.1%
2/16/17-35.3%-10.1%
11/7/16625.0%6.0%
8/4/1623.8%2.8%
5/5/1623.1%2.5%
2/18/16-114.3%-10.0%
10/29/15400.0%6.6%
8/4/1554.6%12.6%
2/17/15-83.3%3.9%
10/30/14-133.3%1.6%
8/5/1475.0%-5.0%
4/29/14110.0%9.6%

 



Over the last twelve reported quarters, MGM reported EPS that beat the Wall Street consensus EPS estimates nine times.  During these nine quarters that MGM beat estimates, its stock price increased every single time.  In fact, the average increase during these nine quarters was 5.4%.  The largest post-earnings increase was 12.6% for the quarter reported on 8/4/2015.  The smallest price increase was 1.6% after the quarter reported on 10/30/2014.

For the three quarters where MGM missed EPS estimates the stock fell every time.  Not only did the stock fall each of these three quarters, it fell big: the average of these three quarters was an 8.4% decline with the largest post-earnings price decline of 10.1% after the 2/16/2017 earnings announcement.



While stocks move for many reasons after earnings are released other than the reported EPS, such as reported revenue or updates on key metrics or guidance, the price action of MGM has recently been heavily correlated to the EPS beat or miss.  Stay tuned for MGM’s earnings on the 27th to see if this trend continues.

 

How LVS Performs After Earnings Are Released

With Las Vegas Sands poised to release second quarter earnings on Monday, July 24, it makes sense to take a look at how LVS stock has performed historically after earnings were released.

To do this, we looked at the last twelve earnings releases and calculated the price performance from the close one day before the earnings release date to the close one day after the release date.  The table below shows this price performance in addition to the EPS beat or miss.  The EPS beat or miss is the percentage that the reported actual EPS was above or below the consensus EPS Wall Street estimate.



Las Vegas Sands (LVS) Post Earnings Performance

Report DateEPS Beat/MissPrice Performance
4/26/176.5%1.2%
1/25/17-4.6%-6.3%
11/3/1622.0%2.6%
7/25/16-7.1%7.0%
4/20/16-26.2%-9.7%
1/27/16-3.1%4.7%
10/21/154.8%-1.5%
7/22/15-1.6%1.6%
4/22/15-10.8%-0.6%
1/28/1513.6%-2.6%
10/15/140.0%7.4%
7/16/14-4.5%-1.2%

Over the last twelve quarters, LVS traded up six times and it traded down six times.  This lines up perfectly with the EPS beat or miss.  Every time LVS posted an EPS beat the stock performed positively; every time LVS posted an EPS miss the stock performed negatively. Unlike the price performance of WYNN, over the last twelve quarters EPS and price performance around earnings are 100% correlated for LVS.

This 100% correlation between EPS beat or miss and the price performance is actually very strange.  While the reported EPS is important, investors look at a wide range of statistics and metrics during an earnings release, including reported revenue and company specific key statistics such as REVPAR and casino win rate.  In the case of LVS (and its cohort WYNN) stats in its Macau division are also strong stock price drivers.



With all of this said, the correlation of the reported EPS and the price of the stock after earnings for LVS is important to understand.  We’ll see if this streak holds when LVS reports earnings next week.

Historical Performance of WYNN After Earnings

Looking forward to WYNN’s earnings release on 7/27/17, I decided to take a look at how the company’s stock price has reacted to past earnings announcements.

The methodology used is pretty simple. I calculated the price performance of WYNN stock from the close of trading the day prior to the earnings announcement to the close the day after the earnings announcement.

As an example, last quarter WYNN reported on 4/25/17. The price performance of +8.3% is the performance from the close on 4/24/17 through the close on 4/26/17.  The stocks performance following earnings releases are shown for the last 12 quarters in the table below.


WYNN Stock Performance After Earnings

Report DateEPS Beat/MissPrice Performance
4/25/1767.6%8.3%
1/26/17-25.4%6.9%
11/2/16-5.1%-10.9%
7/28/1610.3%-4.2%
5/5/1628.9%0.0%
2/11/1639.2%18.9%
10/15/1514.7%0.7%
7/29/15-23.7%6.2%
4/26/15-48.5%-1.0%
2/3/15-16.7%-2.4%
10/28/147.1%1.2%
7/29/141.4%3.6%

The first column shows the date of the earnings release.  The second column shows the percentage by which the announced EPS beat or missed the consensus sell-side estimates.  The third column shows the price performance from the close one day before the earnings release date to the close one day after.

In the last 12 quarters, WYNN beat the consensus EPS estimate six times.  Of those six quarters with EPS beats, the stock had positive price performance four times, was flat one time and was negative two times.  Of the six quarters with EPS misses, the price performance was positive three times and negative three times.

As we all know, stocks trade on much more that EPS beats or misses nowadays, but this analysis can give you a good feel for how the stock price reacts to during earning announcments.


A Review of Las Vegas Sands’ (LVS) Key Stats Ahead of Earnings

With Las Vegas Sands’ (LVS) 7/24/17 earnings approaching I wanted to take a few minutes to review some of the casino company’s key stats. These key stats, among others, typically drive the stock price right after earnings are reported.  Here we will look at several of the company’s key revenue segments: total casino revenue an total room revenue on a property level.

Total Casino Revenue

The chart below shows the total casino revenue of each property (or group of properties in the case of its Las Vegas operations) over the last eight reported quarters, with the 3/31/17 quarter being the most recent reported quarter.

 


  • Venetian Macao: In the 3/31/17 quarter, the Venetian Macao had total casino revenue of $646M.  This represents a 1.4% drop from the year ago quarter.
  • Sands Cotai Central: This property brought in $390M in total casino revenue.  This was a disappointing 15% year-over-year drop from the same quarter in 2016.
  • Parisian Macao: This new property recorded $279M in casino revenue in the 3/31/17 quarter.
  • Four Season Hotel Macao and Plaza Casino: The $107M in casino revenue was a drop of 3.6% versus the same quarter a year ago.
  • Sands Macao: Finally, an increase in casino revenue!  Sands Macao casino revenue came in at $176M in the 3/31/17 quarter, a 3.5% increase from the 3/31/16 quarter.
  • Marina Bay Sands: The $550M casino revenue was a solid 21.4% increase in casino revenue from the year-ago quarter.  This represents the largest year-over-year increase for any of LVS’s operating units.
  • Las Vegas Operations: The Las Vegas casinos posted a solid 18.3% year-over-year increase in casino revenues, posting $123M in the first quarter of 2017.
  • Sands Bethlehem: The company’s lone PA casino brought in $133M in casino revenue, a 2.3% increase from a year ago.

Total Room Revenue

Like it does for casino revenue, LVS breaks down total room revenue by property.  The chart below shows the last eight reported quarters of total room revenue.

  • Venetian Macao: The $44M in total room revenue in the 3/31/17 quarter was a 4.3% decline from the same quarter in 2016.
  • Sands Cotai Central: This hotel brought in $66M in room revenue, a year-over-year drop of 1.5%.
  • Parisian Macao: In the 3/31/17 quarter, the Parisian Macao, the company’s newest hotel, saw total room revenue of $29M
  • Four Season Hotel Macao and Plaza Casino: This hotel brought in $8M in the 3/31/17 quarter which is about flat from a year ago.
  • Sands Macao: Sands Macao brought I about $5M in the last reported quarter, which is flat versus a year ago.
  • Marina Bay Sands: Marina Bay’s room revenue had $94M of room revenue in the 3/31/17 quarter, a solid 5.6% increase from the 3/31/16 quarter.
  • Las Vegas Operations: The Las Vegas hotels posted the largest year-over-year increase in room revenue of any of the company’s revenue segments.  It’s $157M of room revenue was a 6.1% increase from a year earlier.
  • Sands Bethlehem: The Sands Bethlehem room revenue of $3M was about flat from a year ago.


When LVS reports their 6/30/17 quarter on July 24, 2017, investors and traders will be looking at key stats such as casino and room revenue.  The details of the China operations will definitely be in focus.  As we see in the charts above the Macau properties have had a tough time the last several years, but it seems like a rebound is in the works.  Stay tuned for the second quarter earnings next week!

 

A Look at WYNN Key Stats Ahead of Earnings

With WYNN scheduled to report earnings on July 27, 2017 I thought it would make sense to take a look at some of the company’s key stats ahead of the earnings announcement.  Like most companies, WYNN has several key stats that investors look at to determine the health, growth prospects and management of the company.  Here, we’ll look at a handful of these key stats: total casino revenues, total hotel revenues and several hotel stats.

WYNN management breaks down reported revenue into two main categories: revenue from casino operations and revenue from hotel operations.  The company further breaks each of these down into three operating units: Macau, Wynn Palace and the Las Vegas Operations, which includes Wynn Resort and Encore.

Total Casino Revenue

WYNN’s last reported quarter (the quarter ending 3/31/17) showed a nice bounce in casino revenue for the company’s Macau operations.  Total revenue increased to $554.9M from the previous quarter, but this was down 2.9% from the same quarter in 2016.  The newly opened Wynn Palace saw total revenues for the 3/31/17 quarter come in at $429.9M.  Wynn Palace only opened in the 9/30/16 quarter, so year-over-year comparisons are not available.  Las Vegas Operations saw total casino revenue of $166.3M, about flat from the previous quarter, and up 3.3% from the same quarter in 2016.


The following chart shows the total casino revenue for WYNN’s three revenue segments from the 3/31/14 quarter through the 3/31/17 quarter.  As you can see, the Macau segment is fighting for a comeback from its steep decline during the last several years.  The Las Vegas segment is about on par to its historical revenue numbers.  And the Wynn Palace segment is just starting to take off after opening in late 2016.

Total Room Revenue

Like total casino revenue, WYNN reports total room revenue in three segments.  The Wynn Macau segment reported total room revenue of $25.5M in the 3/31/17 quarter.  This was near flat to the previous quarter, but it was a 16.1% decrease from the same quarter in 2016.  Wynn Palace brought in $39.7M in room revenue in the 3/31/17 quarter, down slightly from the previous month.  Again, Wynn Palace was not open during the 3/31/16 quarter, so year-over-year comparisons are not available.  Las Vegas Operations was the shining star.  This segment rung up $114.9M in room revenue, up nicely from the $105.7M in the previous quarter and up a solid 9.3% from the same quarter a year earlier.

Revenue Split

For the entire company, which includes Macau, Wynn Palace and the Las Vegas Operations, WYNN provides revenue split between Casino, Rooms, Food and Beverage and Entertainment Retail and Other.  The percentage of total revenue for the 3/31/17 quarter breaks down as follows:


Casino Revenue as a Percent of Total Revenue: 72.5%

Rooms Revenue as a Percent of Total Revenue: 11.4%

Food and Beverage Revenue as a Percent of Total Revenue: 9.6%

Entertainment, Retail and Other Revenue as a Percent of Total Revenue: 6.5%

Hotel Stats

The Wynn Macau revenue segment consistently has room occupancy in the mid-90% range.  Over the last four reported quarters, average occupancy was 94.7%.  While the average daily rate, or ADR, has declined in Macau over the past several years, the average of the last four quarters was $280.  Likewise, the revenue per available room, or REVPAR, has decreased in Macau from the low $300’s to $264 on average during the last four reported quarters.

At Wynn Palace, the 3/31/17 quarter showed room occupancy of 95.6%, up from the previous two quarters during the hotel’s opening phase.  ADR was $258 last quarter while REVPAR was $246.

The Las Vegas Operations have fairly consistent hotel occupancy in the mid to upper 80% range, with the average of the last four quarters coming in at 86.2%.  The ADR for the Las Vegas Operations have been ticking up as of late with the four quarter average coming in at $301.  REVPAR, too, has been ticking up, coming in with a four quarter average, as of 3/31/17, or $259.

Historically, the Macau operations have been the driving force of the stock price for WYNN, especially when earnings are reported.  While this is important, a healthy Las Vegas Operations segment is important also, as is the newly emerging Wynn Palace segment.

We’re looking forward to see how these key statistics flesh out during the 7/27/17 earnings release!


Atlantic City Total Casino Winnings Flat But Most Casinos Continue to Benefit From Taj Closing

The June 2017 casino revenue reports show that total casino winnings in Atlantic City were virtually flat in June 2017 versus a year ago. In June, the seven operating casinos pulled in winnings of $197,488,784. This is a -0.003% decrease from June 2016 when AC casinos pulled in $197,493,766.

While the flat casino winnings may be disappointing, most casinos saw significant year-over-year increases as a result of the closing of the Taj Mahal. The June 2016 winnings include winnings at the Taj, and most casinos benefited by that casinos closing.



The Tropicana produced the largest total winnings growth rate at 20.4%, followed by the Golden Nugget with a 14.7% year-over-year growth rate. The only casino to post a negative growth rate in June was Caesars. Caesars total winning dropped 1.9% from a year ago.

The table below outlines the year-over-year growth rates of total winnings of the seven current AC casinos.

 

As you can see, it has been a pretty good year so far for the remaining Atlantic City casinos.  All of the casinos have been benefiting from the closing of the Taj and other casinos.  The notable winner is the Trop which has seen double digit growth rates in its casino winnings.  While the individual casinos are posting gains pretty consistently every month, the casino winnings for the entire AC casino market has been a mixed bag.  As you can see in the table above, since January, the total AC winnings growth rate has been positive 3 months (January, March and May), negative 2 months (February and April) and flat one month (June).

While the Tropicana can boast that it had the largest winnings growth rate, the Borgata still remains the most profitable Atlantic City casino based on total casino winnings.  In June 2017 the Borgata won $59,835,792 in its casino.  The next closest casino was Harrah’s which won $31,647,463.  Here is the full list of casino total winnings for June 2017:



Borgata: $59,835,792

Harrah’s: $31,647,463

Tropicana: $28,459,162

Caesars: $24,688,410

Bally’s: $18,156,634

Golden Nugget: $18,017,766

Resorts: $16,683,557

ALL CASINOS: $197,488,784

With the peak summer season upon use, it will be interesting to see if Atlantic City casinos can ramp up their casino winnings and build momentum before new pressures arise from the pending opening of the Hard Rock and possible reopening of the Revel.