Atlantic City Casinos See 5.3% Increase in Slot Wins in October, But Most Casinos Down

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.

Atlantic City Total Casino Wins Grows 8%; Legacy Casinos’ Wins Drop

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.

MGM Revenue by Property: MGM Macau Is the Leader; MGM Grand is Top in Vegas

The Short Take:

  • MGM Macau had the highest revenue in Q3 for any MGM property at $434M.  MGM Grand had the highest revenue for any domestic property at $340M
  • The best performing MGM resorts in terms of YoY revenue growth were MGM Grand Las Vegas (+9.3%) and MGM National Harbor (+9.0%).  The worst performer was Bellagio (-15.3%)
  • Every domestic resort outside of Las Vegas had positive YoY growth and the MGM Grand is the only domestic resort that had positive YoY Growth

The third quarter MGM quarterly report is out, and one interesting observation is the breakdown of revenue by each of the company’s properties.  The overall winner within the company is the MGM Macau while the domestic property with the highest revenue for the quarter is the MGM Grand Las Vegas.

 

Macau

The two Macau resorts produced over $600 million in revenue for MGM.  The MGM Macau had revenue of over $434.2 million for the third quarter. This is more than double the revenue of the MGM Cotai which rung up sales of over $171.7 million.

In terms of growth, the MGM Macau ran into some headwinds.  Year-over-year growth for the third quarter of 2018, compared to the third quarter of 2017, was in the red.  And substantially so to the tune of -7.8%.  Since the MGM Cotai was not open in the third quarter of 2017, we do not have comparable YoY data.

 

Las Vegas

The MGM Grand in Las Vegas had the highest revenue and YoY growth rates of any of the company’s domestic resorts.  The $340 million in sales works out to 9.3% growth YoY.  This is the only MGM resort in Las Vegas that had positive YoY growth. The worst performing property in Vegas in terms of growth was Bellagio.  Bellagio’s $322 million in quarterly revenue is a 15.3% decrease compared to the same quarter last year.

Domestic Outside Las Vegas

Borgata in Atlantic City had the highest domestic revenue of any MGM property outside of Las Vegas. Unfortunately, Borgata’s revenue fell 4.4% YoY to $235 million.  MGM National Harbor rang up the highest revenue growth in this category, with YoY growth of 9.0% with Q3 2018 revenue of almost $197 million.  In fact, every domestic non-Las Vegas property had positive YoY growth in the third quarter, with the Beau Rivage growing 8.2% and Gold Strike Tunica increasing by 1.9%.

As you can see by the two charts above, revenue and revenue growth rates were a mixed bag for the MGM properties.  To see more third quarter MGM statistics, check out our articles on Casino Revenue, ADR and RevPAR.

Borgata Dominates Atlantic City Poker

The Short Take:

  • The September Atlantic City poker rack was dominated by Borgata which saw a rake of over $2.2 million
  • Borgata’s rake was over twice the rake of every other Atlantic City poker room combined
  • The winner in terms of rake per poker table was Ocean Resort, with a rake of over $20,000 per table

While poker is a relatively small slice of an Atlantic City casino’s wins compared to slots, table games and now sports betting, it still brings in a decent amount of revenue for many of the city’s casinos.

We looked at the September poker wins, or rakes, for each AC casino that offers live poker tables.  By far, Borgata, owned by MGM, is the clear winner.  During the month, Borgata took in over $2.2 million from its poker tables.  By comparison, the other five casinos that offer poker took in just over $905,000 COMBINED!

Two casinos owned by Caesars Entertainment (CZR) had the second and third highest poker rakes for the month, but they were not even close to Borgata’s.  Harrah’s rake was $236,000 while Bally’s brought in $226,000.

Tropicana, Ocean Resort and the Golden Nugget round out our list.  The Trop’s September poker rake was $177,000 while Ocean Resort’s rake was $166,000.  The smallest poker rake belonged to the Golden Nugget, with just under $100,000 for the month. Note that Caesars, the Hard Rock and Resorts do not offer live poker tables.

Here’s a look at the September poker rakes for each AC casino that offers poker:

 

Looking at the poker rakes in terms of city-wide market share, Borgata controlled 71% of the total rake for the month.  Combined, the other five casinos had just 29% of the poker rake.

 

Another interesting way to look at this is to see the rake per poker table at each casino.  We do this by taking the total monthly rake and dividing it by the number of poker tables in each casino.

First, here’s a review of the number of poker tables at each casino as of September 2018:

Borgata:                      124

Bally’s:                         42

Harrah’s:                     37

Tropicana                    18

Golden Nugget:           9

Ocean Resort:             8

TOTAL AC TABLES:      238

While Borgata was the clear winner in total poker rake, the newly opened Ocean Resort claims the prize for the highest rake per poker table, with over $20,000 per table. Borgata was a close second, with about $17,000 per table.  Borgata was followed by the Golden Nugget, Tropicana and Harrah’s.  Bringing up the rear was Bally’s.  Bally’s had the third highest total poker rake, but the smallest rake per table at a bit over $5,000.

Here’s a look at each casino’s rake per poker table:

While poker is not the most important aspect of a casino’s revenue, the casinos still want profitable poker rooms.  Borgata is killing it in terms of total poker rake while the upstart Ocean Resort surprises with the biggest rake per table.  Ante Research will continue to keep an eye on the AC poker rooms, so bookmark us and check back soon!

How Much Do Casinos Win on a Square Foot Basis?

The Short Take:

  • We took a look at each Atlantic City casinos’ total wins per square foot for September 2018
  • Borgata, arguably the city’s top casino, rang up the most wins per square foot in September with $439.34 per square foot
  • Surprisingly, the city’s smallest casino, the Golden Nugget, came in second with $242.55 wins per square foot
  • The casino with the smallest win per square foot was Bally’s, clocking just $131.42 per square foot.

While they don’t rival some of the largest Vegas casinos, Atlantic City casinos are massive.  When you walk in all you can see are rows of slots and clusters of table game pits.  The casino floor seems to go on forever.

Retail stores like Macy’s and the Home Depot report a statistic: sales per square foot, but casinos do not report a similar measure.  So, we decided to calculate the total casino wins per square foot.  The math is pretty simple.  Take the reported total casino wins and divide that by the size of the casino.  Both of these numbers are reported by the Atlantic City casinos to the New Jersey government.

First, let’s look at the size of each AC casino.  Harrah’s is the largest casino in terms of casino square footage, coming in at 156,284 square feet.  Borgata comes in second with 136,771 square feet.  Five casinos make up the middle of the pack in terms of square footage: Ocean Resort, Tropicana, Bally’s, Hard Rock and Caesars.  These five casinos are all in the 115,000 – 130,000 square foot range. The two smallest casinos in the Atlantic City market are Resorts at 82,877 square feet and the Golden Nugget at 78,464 square feet.

Here’s a look at the nine current Atlantic City casinos’ total casino floor square footage:

 

Looking at this data another way, Harrah’s controls about 14% of the total casino square footage in the Atlantic City market, followed by Borgata with about 13%.  On the opposite end, Resorts has 8% and the Golden Nugget has 7% of the total AC casino space.

 

Now let’s look at how much each casino wins per square foot.  As we mentioned earlier, we took the total casino wins for the month of September and divided it by the casino square footage.

Borgata blows every other casino away in terms of wins per square foot, with over $439 in wins for every foot of casino space.  The next closest is the smallest casino in town – the Golden Nugget.  While the Nugget’s win per square foot of $242 is just a bit more than half that of Borgata’s, it still beats seven other casinos.

Tropicana and Caesars are next on the list, and the only other two casinos above the $200 mark.  Resorts and Harrah’s are both in the mid-$180’s per square foot.  As expected, if you read our earlier article on total casino win rates for the Atlantic City casinos, Bally’s is dead last on the list, and by a lot.  It’s total win per square foot is only 131.41, or less than 30% of the Borgata’s.

 

While this information may not be particularly actionable for either gamblers or investors, it is still really interesting to see the disparity of the win per square foot between some of the casinos in AC.  The smallest casino, the Golden Nugget, came in second for wins per square foot and the largest, Harrah’s was second to last.  The Nugget is definitely making great use of every foot of its casino floor.

The Golden Nugget Dominates New Jersey Internet Gambling

The Short Take:

  • The seven Atlantic City casinos won over $25M from their Internet gambling websites in September
  • The market leader for the month was Borgata which won over $9.2M and controlled over 36% of the New Jersey online casino market
  • The two newcomers to Atlantic City – the Hard Rock and Ocean Resort – controlled a combined 3.8% of the New Jersey online casino market after just three months of operation

In September, the seven Atlantic City casinos that offer Internet gambling within the borders of New Jersey saw $25,752,461 in total online wins.  This number represents the total all of the Atlantic City casinos won through their websites which offer games such as slots, blackjack and poker.  This number does not include online sports betting – you can read about the casinos’ September online sports betting results here.

Borgata, which dominates slots and table games in its physical casino, does not dominate internet gambling in New Jersey.  The Golden Nugget typically slays the competition in online gaming, and the September results were no different.  The casino won over $9.2M through the three websites it operates.  Borgata did come in second, but a distant second.  Its online wins of $4.5M were less than half that of the Golden Nugget.

Caesars, Resorts and the Tropicana filled the middle of pack, with total online wins between $3.3M and $4.1M. The two newest casinos in town, the Hard Rock and Ocean Resort, had the lowest online wins with $646K and $323K, respectively.

Here a recap of the total September Internet gambling wins for each Atlantic City casino:

 

The Golden Nugget’s $9.2M in online wins in September obviously gave it the largest share of the online gambling pie in New Jersey.  For the month it took in 36.1% of the statewide online wins while Borgata earned 17.7% of the wins.  The Hard Rock and Ocean Resort were only in their third full month of offering internet gambling, so they have a lot of room to grow their market share.  The Hard Rock controlled 2.5% of the internet wins in September while Ocean Resort controlled 1.3%.

Here’s a look at the Internet gambling wins market share for each Atlantic City casino:

 

The Atlantic City casinos offer internet gambling through various websites to players that are physically located in the state of New Jersey.  Here’s a rundown of the websites each casino operates:

Borgata:

www.BorgataCasino.com

www.BorgataPoker.com

www.NJ.PartyPoker.com

www.PalaCasino.com

www.playMGMcasino.com

www.playMGMpoker.com

 

Caesars:

www.CaesarsCasino.com

www.HarrahsCasino.com

www.WSOP.com

www.888.com

 

Golden Nugget

www.GoldenNuggetCasino.com

www.BetFairCasino.com

www.PlaySugarHouse.com

 

Hard Rock

www.HardRockCasino.com

 

Ocean Resort

www.OceanOnlineCasino.com

 

Resorts

www.ResortsCasino.com

www.MoheganSunCasino.com

www.PokerStartsNJ.com

We’ll be keeping an eye on all of the Internet gambling action in New Jersey, so bookmark us here at Ante Research and check back soon!

How Much Does Each Table in a Casino Win?

The Short Take:

  • We calculated the average monthly table game drops per table and wins per table
  • As expected, the Borgata won both categories, with $567K per month dropped at each table and $91K in casino winnings per table
  • Bally’s trailed every other casino, with just $234K dropped per table per month and $42K in casino winning per table

Each Atlantic City casino has dozens of tables offering games such as blackjack, craps, roulette and various types of poker games like 3 Card Poker.  Have you ever wondered how much each table takes in and how much the casino wins per table?  We have the answers for you!

The amount of money exchanged for chips at a casino table is called the drop.  The dealer literally drops the cash into a box attached to the table.  If you add up all of the money in all of the boxes at every table for a month you get the total monthly table game drop for the casino.  If you then divide that number by the number of tables in the casino you get the per table monthly drop.

We used this method to figure out the per table average monthly drop using data for the first nine months of 2018 to get a good approximation of the monthly drop.  As you’ll see in the table below, the casino with the largest per table monthly drop is the Borgata with over $567K dropped per table per month on average.  That is over $221K more than its next closest competitor, Caesars, with over $346K per table.

The remaining five Atlantic City casinos in this study ranged from $331K drop per table for the Golden Nugget to the loser in the group, Bally’s, with $234K per table.  In fact, the two worst performers when it comes to average monthly table game drops over the first nine months of 2018 were Caesars Entertainment (CZR) properties: Harrah’s and Bally’s

Now that we know what the average monthly table game drop looks like, let’s take a look at how much the casinos win per table.  To do this we take the monthly table game wins all of the tables and divide that by the number of tables in the casino.  We did this for the first nine months of 2018 and then took the average of those months.

It’s no surprise that the Borgata (owned by MGM) led the pack with an average of over $91K won per table per month.  There was a battle for second place between the Golden Nugget and Caesars.  The Golden Nugget won the scuffle with $62K per table while Caesars won $61K per table per month.  Harrah’s, which came in second to last in table game drop, actually outperformed by coming in fourth in table game wins, with $54K per table.  Yet again, Bally’s trailed all of its competition with a measly $42K win per table per month on average.

As we mentioned, we calculated the table game wins per table by dividing the total casino wins for table games by the number of tables in the casino.  If you’re curious, here is a look at the number of tables in each Atlantic City casino in this study as of September 2018:

Number of Table Games in Atlantic City Casinos as of September 2018:

Bally’s 122
Borgata 183
Caesars 131
Golden Nugget 84
Harrah’s 133
Resorts 68
Tropicana 112

You probably noticed that the Hard Rock and Ocean Resort are not in this study.  We excluded them because they just opened earlier this year and they did not have data going back through January.  But here are some quick table game stats on these two newcomers for July through September, their first three full months of operation. The Hard Rock’s 152 tables averaged a drop of $459K per month.  This easily puts it number two in the market behind only the Borgata.  Its average monthly table win was $59K, putting it fourth in the AC market.

The Ocean Resort’s 107 tables had an average monthly drop of $399K.  This is lower than the Borgata and the Hard Rock, but higher than Caesars. But, its average monthly win per table was $46K, putting it at toward the bottom of the list.

The disparity between the table game drops and wins among the Atlantic City casinos is amazing and it shows the dominance of the Borgata.  The Borgata, by the way, also dominates the slot machine wins which was highlighted in yesterday’s article about average handles and wins per slot machine.

How Much Does Each Slot Machine in a Casino Win?

The Short Take:

  • We looked at Atlantic City slot data to determine how much is played in each slot machine (the handle) and how much is won by the casino on each machine per month, on average.
  • The per machine handle varies greatly from over $171K per month for the Borgata down to under $68K per month for Bally’s
  • The per machine casino win per month also varies.  The Borgata wins on average $14K per machine per month while Bally’s win is around $6K per month.

Have you ever walked into your favorite Atlantic City casino, looked out at the sea of slot machines and wondered how much money goes into each one every month, and how much the casino actually wins per slot machine?

We wondered that too! So we put together a study of Atlantic City slot machine statistics and some snazzy charts and now we’re ready to tell you. But first, a little background.

Whenever a slot machine is played, that cost of the spin is called the handle, whether or not the player wins.  So, if a player bets $3 on a spin, that $3 is added to the casino’s slot handle whether the player loses or wins $1,000.  Add up all of the money played on each slot machine over a month and you get the casino’s monthly handle.  To find out how much each slot machine’s handle is we just divide the casino’s monthly handle by the number of slot machines in the casino.

Since business varies from month to month for Atlantic City casinos (July is busier than February, for example), we looked at the statistics for the first nine months of 2018. This should give us a pretty good idea of the average monthly handle for each slot machine in each casino.

As we mentioned earlier, to come up with the handle for each slot machine we need to know the number of slots in each casino.  The AC casinos report this number monthly.  For example, in September 2018, the number of authorized slot machines in each casino are below:

Number of Slot Machines in Atlantic City Casinos in September 2018:

Bally’s

1,776

Borgata 2,825
Caesars 1,894
Golden Nugget 1,456
Harrah’s 2,109
Resorts 1,463
Tropicana 2,458

When we take the total slot handle each month and divide it by the number of slot machines in the casino, we get the handle per machine each month.  Then we average the months in the study to get the average monthly handle per machine from January 1, 2018 through September 30, 2018:

 

Borgata was the clear winner.  Customers played over $171K in each of Borgata’s slots every month, on average. Harrah’s was a distant second with $122K on average per month.  The middle of the pack sees four casinos: the Golden Nugget, the Trop, Caesars and Resorts. Trailing the pack was Bally’s, with under $68K played in each slot machine per month on average.  Bally’s machines saw just 55% of the action that the Borgata’s saw.

Now that we know the average handle per machine per month, let’s take a look at the average amount each Atlantic City casino wins per machine per month.  To do this, we take the total monthly slot wins which are reported by the casinos and divide that by the number of machines.  Again, we looked at the first nine months of 2018 to get a monthly average:

It’s no surprise that the Borgata was the winner in this category too.  Borgata won over $14K on every single machine every single month on average. Harrah’s came in at $10K per machine, which is about 29% below Borgata’s win rate.  The middle of the pack is comprised of the same four casinos we saw earlier in the per slot handle chart.  And poor Bally’s is again dead last with just over $6K won per slot machine per month.

You may have noticed that we left out the Hard Rock and Ocean Resort from this study.  They were omitted because they did not have data going back to January.  If you are wondering, the Hard Rock’s 2,065 slot machines had an average monthly handle per machine of $99,352 and an average win for the casino of $10,002 from July through September, its first full three months of operation.  Based on these numbers, the Hard Rock is about in the center of the pack on a per machine basis.

For the same three-month time period, Ocean Resort had an average monthly handle per machine of $60,968 and an average win per machine of $6,045 for its 1,937 slot machines.  These numbers put it well below even Bally’s for both categories.

Were you surprised by how much each slot machine takes in and wins for the casinos?  We were!  We’ll also be taking a look at the average drop and wins on table games soon, so keep Ante Research bookmarked and check back often!

The Trend in Atlantic City Casino Slot Wins Is a Mixed Bag

The Short Take:

  • We analyzed close to five years of data on casino slot wins in the Atlantic City market
  • Four casinos have been consistently increasing their slot wins, led by the Borgata
  • Three casinos consistently see smaller and smaller slot wins over time, led by Harrah’s

Yesterday we took a look at the September casino slot wins for the nine Atlantic City casinos. While the year over year (September 2018 versus September 2017) slot wins were up over 8.5% city-wide, we saw that the opening of the Hard Rock and the Ocean Club caused all of the other casinos to have dramatic drops in their win rates.

This increased competition will require all AC casinos to fight hard to retain customers, so we wanted to look at the historical strength of the individual casinos based on one of their largest sources of revenue – slot machine wins.  We’ll do this by looking at each casino’s slot wins since the beginning of 2014.  For this study, we are ignoring the Hard Rock and Ocean Resort since they opened just a few months ago and do not have long-term historical data to analyze.

Four casinos have seen consistently increasing slot wins since January 2014.  Sure, there are peaks and valleys, but the general trend in slot wins is upward.

The market leader, the Borgata (owned by MGM) is the first casino that has an upward linear trend line for slot wins over the last four and a half years or so.  The Borgata is joined by the Tropicana, Golden Nugget and Resorts.  While these last three have slot wins that are significantly less than the Borgata on an absolute basis, that is not what we are looking at now.  We’re looking at each casino’s trend in slot wins – are they consistently winning more and more money on their slots over time.

The chart below clearly shows the upward trend of these four casinos’ slot wins.  Each bar in the chart represents one month of slot wins. The black line sloping upward is the trend for each casino.

Unlike the four casinos above that have consistently increasing slot wins over time, there are three casinos that have the problem of decreasing slot wins over time.  All three of these casinos are owned by Caesars Entertainment (CZR): Harrah’s, Caesars and Bally’s.

Harrah’s is the most problematic since it has the worst trendline of the three.  This can be seen by the negative slope of the black trend line – it is sloping downward the most, which indicates the most aggressive loss of casino wins over time.  Bally’s trend is a bit less negative, but the casino is still bleeding slot wins consistently.  Caesars is the least dire of these three casinos.  While its trendline is negative, it is not nearly as dramatic as Harrah’s.

Here’s the visual of the slot win trend for these three casinos:

As we said when we looked at the trends for overall casino wins, the trends of the slot wins are more important than ever as competition in the Atlantic City market heats up.

Be sure to bookmark us because we’ll be keeping a close eye on the Atlantic City market!

Atlantic City Slot Wins Grow by Over 8.5% But Most Casinos Saw Drops from Last Year

The Short Take:

  • Atlantic City casinos won over $166.7 million from slot players in September
  • While slot wins city-wide grew by over 8.5% from last September, most casinos saw declines due to the opening of the Hard Rock and Ocean Resort
  • The Atlantic City leader in slot wins was the Borgata while the Ocean Resort had the smallest total slot wins

Total Slot Wins

In September, the nine Atlantic City casinos won $166,790,674 from their slot machines. As usual, the Borgata (owned by MGM) saw the largest win with its haul of over $41 million in slot wins. Tropicana and Harrah’s came in second and third with $23 million and $20 million, respectively.

The newcomers on the Boardwalk produced mixed results.  The Hard Rock had the fourth highest slot wins for the month, with over $17 million. The Ocean Resort did not fare as well. The Boardwalk’s northern-most casino came in dead last for slot wins with its take of under $11 million.

Here’s an overview of the slot wins for each Atlantic City casino:

 

Year Over Year Growth for Slot Wins

This was the first September of operations for the Hard Rock and Ocean Resort.  Their emergence in Atlantic City had a huge impact on the slot wins for the casinos that existed before their openings.

Although total slot wins increased by over 8.5% for the entire Atlantic City market in September 2018 versus September 2017, each of the seven casinos that existed a year ago saw dramatic decreases in slot wins.

Harrah’s (owned by CZR) was the biggest loser.  It saw its September slot wins drop a staggering 19.7% compared to the same month last year. Caesars (also owned by CZR) was the second biggest loser, dropping 15.0%.  Even the best performing casino in terms of year over year slot win growth saw a drop from last year: the Tropicana’s wins fell 2.5%

Here’s a look at the year over year slot wins growth rates (or should we say decline rates?!?) for each Atlantic City casino:

 

Slot Win Market Share

While the Hard Rock and the Ocean Resort definitely impacted the other casinos in Atlantic City, these two newcomers still only had a combined slot wins market share of 16.8% in September.  The Hard Rock’s market share of 10.3% is fourth in the city while the Ocean Resorts is dead last in terms of slot wins market share at 6.5%.

The slot wins market leader is, as usual, the Borgata with 24.6% of the market.  This is only a bit less than half of the next casino on the market share leader board: the Tropicana with 13.9% of the slot wins share for September.

Here’s the slot wins market share tally for September 2018:

 

Will AC slot hosts in the casinos affected by the Hard Rock and Ocean Resort openings be able to bring back players to the older casinos?  Only time will tell, but we here at Ante Research will keep an eye on the developments.  So, bookmark us and check back soon!