CASINO

Seven Atlantic City casinos post gains in “very encouraging” January results

TAGs: Atlantic City

atlantic-city-casino-gainsAtlantic City casinos have started the year off right by posting a 17.9% revenue gain in the month of January. The eight surviving AC casinos that were operational in January 2014 reported revenue of $186m last month, not counting the $11.5m contributed via January’s online gambling revenue.

The brick-and-mortar total is also an improvement over December’s $179.8m. Even if you factor in all online and land-based revenue from both surviving and closed casinos, revenue is up 1%, so happy new year AC.

New Jersey Casino Control Commission chairman Matt Levinson cautioned that while “it is always risky to say we’ve turned a corner or that there is light at the end of the proverbial tunnel, let me say that January’s results are very encouraging.”

Seven of the eight survivors reported year-on-year revenue gains in January, six of them in double-digit territory. Perennial market leader Borgata rose 18.1% to $57.1m while Harrah’s was up 20.1% to $30.8m and Caesars rose 29.8% to $23.1m. The rest of the casinos finished as follows: Tropicana ($20m, +19.8%), Golden Nugget ($15.8m, +50.8%), Bally’s ($15.8m, +6.7%), Trump Taj Mahal (the month’s lone decliner, falling 21.2% to $12.1m) and Resorts ($11m, +31.8%).

Ohio’s casino industry earned nearly $65m in January, up 9% year-on-year. However, January 2014 was a time of epic snowfall that closed some casinos for a couple days. Regardless, three of the state’s four casinos posted gains, led by Hollywood Columbus ($18m, +17%). Horseshoe Cleveland rose 4% to $17.4m, while Hollywood Toledo posted the month’s biggest percentage gain, rising 24% to $14.3m. Horseshoe Cincinnati bucked the trend, falling 6% to $15.2m. The state’s seven racinos earned $63m, down 2.6% from December.

Michigan’s casino industry saw revenue jump 15% to $111m in January. with all three Detroit venues sharing in the extra bounty. MGM Grand Detroit rose 12% to $46.2m, Greektown was up 16% to $26.7m and MotorCity rose 20% to $38.1m. In addition to better weather, Detroit’s improvement is credited to the fall in gas prices, which has left customers with more discretionary income.

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