Casino Win Trend a Mixed Bag for Atlantic City Casinos

The Short Take:

  • We studied the monthly total casino wins at each Atlantic City casino for close to five years
  • Four casinos have an upward trend over this time period, increasing their casino wins steadily
  • Three casinos have a downward trend with their casino wins progressively falling
  • Watching these trends is important as new competition takes hold in the Atlantic City market

In yesterday’s article we looked at the total September casino win for each Atlantic City casino.  We saw that while the city-wide win rate has increased overall, most casinos that have been around for a while were really hurt with the opening of the Hard Rock and the Ocean Resort earlier this year.

This made us wonder what the overall long-term trend is for each casino based on the amount they are winning each month on the casino floor.  So, we looked at the monthly casino win statistics over nearly five years and it turns out the results are a mixed bag.

Four casinos have an upward trend while three of the casinos’ trends are downward.  And all three casinos that have a negative casino win trend have one thing in common.  Hint: they are all owned by the same company, but more to come on that in a bit.

A quick note before we get into the details.  We only looked at data for the casinos that are currently in operation, so we ignored shuttered casinos like the Taj Mahal, Trump Plaza, Revel and the Atlantic Club. We also ignored the two newcomers on the Boardwalk – the Hard Rock and the Ocean Club – because they just opened recently and do not have long-term historical data available.

Now, onto the results. First the winners.  As the chart below shows, four casinos have an upward trend in total casino wins over the period studied – January 2014 through September 2018.  For each casino, the chart plots the monthly total casino wins and overlays a trend line, which is the black line slopping upward in each casino’s quadrant.  For the statistics nerds out there, this is a linear trend line.

The Borgata, Tropicana, Golden Nugget and Resorts all have a positive casino win trend over the nearly five years of data studied.  While you see monthly spikes and valleys for each casino (due largely to seasonality or a particularly lucky or unlucky month on the casino floor), the overall trend for each of these AC casinos is upward.

So, who are the losers? It turns out that the losers are the three Atlantic City casinos that are owned by Caesars Entertainment (CZR). Harrah’s, Caesars and Bally’s all have negative slopping trend lines over the nearly five-year period studied. Just by looking at the monthly plot bars, you can visually see that overall casino win rates are dropping for these three CZR properties.

What does this analysis tell us about the future of the Atlantic City casinos?  One answer may be that the four casinos that have been increasing their casino wins long-term are in a stronger position to battle the two newcomers in the market.  Over the years they have been building their brand and customer loyalty which resulted in more action in their casinos.

After all, if the casinos that have been drifting lower and lower even before more competition hit them in the face will be confronting a real battle in the coming months and years.

We’ll be staying on top of all of the Atlantic City casino action here at Ante Research.  Make sure to bookmark us and check back soon!

The Hard Rock and Ocean Resort Put a Dent in Other Casinos’ Wins

The Short Take:

  • Atlantic City casinos logged over $231.9 million in casino wins in September, led by the Borgata
  • The new casinos in town, the Hard Rock and Ocean Resort, won a combined $40.8 million during the month
  • Borgata held 26.1% of the casino wins market share, followed by the Trop at 12.9%
  • Almost all casinos that have been open at least a year saw huge year over year decreases in casino wins since the opening of the Hard Rock and Ocean Resort

Atlantic City’s nine casinos recorded $231,963,073 in casino wins in September.  Casino wins are for all games on the main casino floor, including table games, slots and poker.

As usual, the Borgata lead the pack with over $60.5 million in casino wins for the month.  The Tropicana came in second with just shy of $30 million.  The two newer casinos on the Boardwalk, the Ocean Resort and Hard Rock, tallied $14.9 million and $25.9 million in casino wins, respectively.

Here’s a quick overview of each casino’s win total during September:

Market share based on casino wins was led by the Borgata which controlled 26.1% of the city’s casino wins.  Combined, the two new casinos controlled 17.6% of the market during their first September since opening: The Hard Rock controlled 11.2% of the market while the Ocean Resort saw a 6.4% market share.

Here’s the total market share of casino wins for each of the nine AC casinos:

The Atlantic City market saw overall casino wins grow by 7.7% in September 2018 compared to September 2017.  While this is a healthy growth rate for the market in general, the opening of the Hard Rock and Ocean Resort had drastic consequences on the casinos that operated before their arrival.  All but one of the seven casinos that existed this time last year saw dramatic year over year decreases in their casino wins in September.  Four casinos were down double digits.

Compared to September 2017, the top casino in the city, the Borgata, saw its casino wins decrease in September 2018 by 13.5%.  And the Borgata was not even the worst performer.  That title goes to Caesars which saw its casino wins drop by a staggering 23.2% from last September.  The only casino to post a year over year increase, barely, was the Tropicana.  The Trop posted a 0.5% increase in casino wins.

Here’s a look at each casino’s year over year casino wins growth rate:

As the Atlantic City gambling market absorbs the new competitors on the Boardwalk it will be interesting to watch who wins and who loses the battle for the gamblers’ dollars.  We’ll keep an eye on this at Ante Research, so bookmark us and check back often!

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

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

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.

Atlantic City Slot Wins Flat in June But Taj Closing Boosts All Casinos

The New Jersey Division of Gaming Enforcement released the June 2017 casino revenue reports and the results regarding slot machine wins is positive for all Atlantic City casinos.

Year Over Year Slot Win Growth

While the total slot wins in June were amazingly close to flat versus June 2016 for all Atlantic City casinos (142,968,402 for June 2017 vs 142,948,427 for June 2016), all casinos posted positive year over year slot win growth rates.  How can this be?  The simple answer is that in June 2016 Trump Taj Mahal was still in business.  Effectively, the remaining seven AC casinos split the Taj’s approximately $12 million monthly slot win.

The clear winner of the Taj shutdown is the Tropicana, based on slot wins.  The Trop’s year over year slot win increased a remarkable 21.2%.  The next biggest slot win growth rates belong to the Golden Nugget at 14.7% and Resorts at 10.4%.  While all casinos posted positive year over year slot win growth rates, Borgata was in last place at 4.8%.  A case can be made that Borgata, arguably the highest-end casino in Atlantic City, benefited from the closing of the Taj the least.



The chart and table below show the year over year slot win growth rates for each of the last six months for all of the AC casinos still open, plus the total slot win growth rate for all casinos.

Year Over Year Slot Win Growth Rates for Atlantic City Casinos

As you can see, the total Atlantic City slot win growth rates have been a mixed bag since the beginning of 2017.  While the growth rates for slot wins increased during the first three months, the growth rate turned negative in April and May and was essentially flat in June.

Absolute Slot Wins

While the Tropicana had the largest year over year percentage growth rate for slot wins, Borgata continues to have the largest absolute dollar for slot wins.  In June 2017 Borgata had slot wins of over $41.0 million.  Its next closest AC rival was the Trop at $23.9million, followed closely by Harrah’s at nearly $22.0 million.  The table below shows the total slot win for each of the last twelve months for the AC casinos currently in business.

 



What will the reopening of the Taj as a Hard Rock property and the (hopeful) reopening of the Revel/Ten do to the slot business of the existing casinos?  Only time will tell.  Stay tuned!