Atlantic City casinos make less, profit more

In a paradoxical development, Atlantic City casinos reported a 61% increase in profitability in Q315. That largesse came even as gross trump-taj mahagaming revenues only rose 5%. Cost-containment is credited with being the source of the bounty. Caesars Interactive swung from a loss to a profit, while Resorts Digital did the reverse. In addition to climbing the ladder of Boardwalk casinos, Resorts Atlantic City grew profits by 80%. Weirdest of all, even as it fell into last place in revenue, Trump Taj Mahal reported a profit increase 182%, some of that clearly made by then-CEO Bob Griffin off the backs of his workforce, whom he has screwed over royally.

While the casino industry can bask in a moment of prosperity, there’s no such relief down at City Hall. Mayor Don Guardian (R) has told the Legislature that the city will go bankrupt next April 29, barring some form of financial relief … which Gov. Chris Christie (R) is currently impeding. Borgata room revenues ($142) led the market, while Golden Nugget ones ($82) were the most affordable, although neither property is suffering.

A resolution to condemn Revel has been put before the City Council. Whoever thought it would come to that dire pass? However, Glenn Straub is moving ahead with a $30 million plan to buy the ACR Energy Partners facility. His people are also dropping hints that, if they wrest the Showboat from Bart Blatstein, they will pivot and make that their base of operations.

* Although the Indiana Legislature granted them permission to come onshore, Hoosier State riverboat casinos have been slow to Aztartake advantage of the opportunity. No longer. Tropicana Entertainment will retire the venerable Casino Aztar in favor of a 75,000-square-foot, $50 million casino, tucked in between TropEnt’s Le Merigot Hotel and Tropicana Evansville Hotel. The riverboat’s place on the waterfront will be taken up by — get this — an LST 325 World War II vessel. TropEnt owner Carl Icahn will get $20 million in redevelopment lease credits and the lease itself will be extended through 2055 — by which point you or I may no longer be here but Icahn surely will.

* Presidential candidate Ben Carson says gaming issues should be left up to individual states (you go, Tenth Amendment). In a graceful bit of campaign jujitsu, he dissed Sheldon Adelson‘s federal Internet-gambling ban without actually saying anything about it. (If the Swiss can have ‘Net bets, why can’t we?) You can’t get much more unequivocal than, “Any gaming issue should be a state issue.”

Springfield, Massachusetts‘ City Council will vote up or down on MGM Resorts International‘s revision of MGM Springfield into a smaller, much more expensive project. Have they got any choice but to go along? MGM has presented Springfield 2.0 as a fait accompli and how do you say “no” to $950 million in investment?

* Congratulations to Rock Gaming Caesars for keeping it classy with its retro holiday displays (including a gorgeously restored antique Christmas tree) in the Higbee’s building, of A Christmas Story fame. Higbee’s has proven such a congenial fit for gaming that one can easily forgive Dan Gilbert for seemingly forgetting his commitment to build a brand-new casino nearby. Besides, the market won’t support it, at least for the time being.

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