Life after Revel; Sheldon’s solid quarter

Harrahs AC_2Faced with fewer and fewer casino choices in Atlantic City, players seem to be choosing to stay home. The seaside city saw gaming revenues plummet 17% last month. That’s also the same percentage by which coin-in and slot revenues slipped. Table game play was down 18% and luck definitely was not with the casinos (-19% win). At $10 million for September, Internet play was about what we’ve come to expect … PokerStars can’t arrive a day too soon. With Showboat closed, and Revel (-99%, $100K) and Trump Plaza (-80%, $1.3 million) closing, there was dynamic movement in revenue. Trump Plaza players didn’t bail out Trump Taj Mahal, down 23% ($17.5 million). However, the Golden Nugget (+41.5%, $15 million) raked in business by the fistful. There must some unacknowledged genius in their marketing department. By closing Showboat, Caesars Entertainment was able to shoo players over to Harrah’s Resort (+6%, $31 million) and Caesars Atlantic City (+10%, $26 million), if not to Bally’s (-2%, $20 million).

Resorts Atlantic City ($12 million) didn’t get any lift, being absolutely flat with last year. Tropicana Atlantic City ($21 million, however, saw a 6% bump. And let’s not forget Borgata (+6%), continuing to thrive with a $55 million gross. Does Brookfield Asset Management really want to try and resuscitate Revel in this economic climate?

* On a happier note, revenues were 1% down at Las Vegas Sands but profits increased 7%. Although there was an understandable tendency to focus on Macao revenue, Deutsche Bank analyst Carlo Santarelli found some interesting Sheldonmetrics in Sheldon Adelson‘s Las Vegas Strip properties. In almost all important categories — ADR, room revenue, table play, slot handle (way up) — Venetian and Palazzo posted numbers that either improved on the year previous or offset third-quarter declines. Retail, entertainment and dining generated $120 million, compared to the casino’s $200 million, but the former was flat with the year before. I guess Sands didn’t get the memo that Las Vegas isn’t supposed to be about gambling anymore.

Adelson’s Pacific Rim properties took some lumps. Four Seasons Macao & Plaza Casino was down 20%, Sands Macao dipped 8% and Marina Bay Sands declined 5%. On the other side of the ledger, Sands Cotai Central was up 11% and Venetian Macao was flat with 3Q13. Heck, even red-headed stepchild Sands Bethlehem notched a 4% gain. Perhaps Adelson should quit meddling in Florida pot politics and enjoy his good fortune.

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