Inside Gaming: New Jersey Revenue Up, Boosted by Hard Rock, Ocean Resort
This week's installment of Inside Gaming shares the latest revenue figures from Atlantic City, reports on yet another state jumping into the sports betting game, and notes a ten-figure sale of a Detroit casino.
October Another Positive Month for Atlantic City Casinos
Gaming revenue continues to trend upward for Atlantic City casinos, according to the latest monthly revenue report from the New Jersey Division of Gaming Enforcement. Collectively revenue in October was up 15.8 percent year-over-year, with casinos together reporting total gaming win of $234.3 million compared to $206.4 million in October of last year.
That makes five straight months of monthly revenue increases for New Jersey. Through 10 months the total gaming revenue this year in the state totals $2.387 billion or 6.3 percent more than the $2.246 billion from this point a year ago.
Just over $200.6 million of the revenue total came from the casino win (up 8 percent year-over-year), with a little more than $26.7 million of it coming via online gaming (up just over 30 percent).
Increasing the total further was revenue from sports betting (only introduced in mid-June of this year), with sportsbooks in New Jersey realizing a bit over $6.9 million in sports wagering gross revenue for the month. Meanwhile the two racetracks, Meadowlands and Monmouth Park, added another $4.7 million in sports betting revenue to push the state's total close to $11.7 million.
That collective win from sports wagering was down from September's more than $23.9 million. That said, more was bet on sports in October in New Jersey, with the monthly handle totaling $260.7 million compared to $183.9 million in September.
Both the increase in online gaming revenue and the introduction of sports betting helped fuel the overall gain. Also, the addition of two new casinos — the Hard Rock Atlantic City and Ocean Resort Casino (both of which opened in late June) — especially helped ensure the overall increase. Only one of the seven casinos in operation a year ago saw an increase in casino win in October, the Tropicana Atlantic City (up 2.1 percent).
The Hard Rock Atlantic City's combined gaming revenue (casino and internet) was a little more than $24.2 million in October, while the Ocean Resort Casino's was just over $14.5 million.
First Sports Wagers in Pennsylvania Placed at Hollywood Casino
You can now add Pennsylvania to the list of states offering sports betting. The Hollywood Casino at Penn National Race Course took sports bets yesterday afternoon during a "live wagering test day," reports The Inquirer.
Described by The Inquirer as a "stealth launch," William Hill USA is operating the sportsbook at Hollywood with the test period designed to make certain operations run smoothly and correctly follow all regulations.
Hollywood Casino is one of six Pennsylvania casinos who have filed for sports betting licenses over the last couple of months, with Valley Forge Casino Resort the latest having only just applied on Thursday. Others include Harrah's Philadelphia, Parx Casino, Rivers Casino Pittsburgh, and SugarHouse Casino. The licenses come with a $10 million fee, plus a 36 percent tax rate on revenue.
Last fall the state passed legislation significantly expanding gambling in Pennsylvania, including opening the door to 10 new "mini-casinos" and more online gambling. Also included in that bill was a provision to legalize sports betting should the U.S. Supreme Court rule in favor of lifting the federal prohibition against doing so, something SCOTUS did by ruling in favor of New Jersey's appeal against the law in late May.
We were tallying here last week the list of states now offering sports betting which has now reached seven: Delaware, Mississippi, New Jersey, New Mexico, Nevada, Pennsylvania, and West Virginia.
Jack Entertainment Sells Greektown Casino in Detroit for $1B
This week the Detroit Free Press reported that Jack Entertainment, the Detroit-based gaming company founded by businessman Dan Gilbert, had sold the Greektown Casino-Hotel in Detroit for a hefty price tag of $1 billion.
The purchasers are the casino operator Penn National Gaming and the real estate investment trust VICI Properties. VICI Properties adds to a portfolio of gaming facilities that includes Caesars Palace in Las Vegas. In October 2017, VICI Properties completed a spin-off from Caesars Entertainment Operation Company.
Speaking to the Detroit Free Press, Gilbert clarified that "even with $400 million in debt" on the casino, "the sale will allow Gilbert to deploy hundreds of millions of dollars into his many other projects."
Gilbert spoke of plans for several ventures, including many in the Detroit area. He would not confirm rumors of plans to buy the Detroit Tigers.
Greektown Casino-Hotel first opened in 2000, with Gilbert and partners purchasing the property in 2013. The casino features 100,000 square feet of gaming space, including 2,800 gaming machines, dozens of table games, and a poker room, with several restaurants and shops on site as well as a 400-room hotel.
Pending review by regulators, the sale should be finalized in 2019.
Speaking of other ventures for Gilbert, the entrepreneur also this week acquired the free reference websites dictionary.com and thesaurus.com for an undisclosed amount. In a press release, Gilbert cheekily commented on the larger context of the acquisition.
"From the genesis, we admit to invariable conjecture in the unmitigated competency of online mechanization to ameliorate the total sum of completed undertakings throughout our mortal existence," noted Gilbert, adding that "cognition and discourse are conjointly associated."
Photos: "Guitar at the main entrance of Hard Rock Hotel & Casino, Atlantic City, New Jersey" (adapted), Wcam, CC BY-SA 4.0; "Ocean Resort Casino in Atlantic City, New Jersey" (adapted), Farragutful, CC BY-SA 4.0.
