New casinos and video lottery terminal growth in several states – as well as a healthy economy – fueled a more than 3 percent increase in the nation’s gaming revenue for the six months of 2018, according to Reno-based gaming analyst and consultant Ken Adams.
Writing in his monthly Adams Revenue Revue, which he produces for CDC Gaming Reports, Adams said there were “some unusual circumstances” in several states which led to each of the 21 jurisdictions he follows showing increased revenue totals in June.
During the month, the locations produced a combined $3.5 billion in gaming revenue, an increase of 5.45 percent over the same month a year ago. For the first six months of the year, gaming revenue is up 3.24 percent to $21.3 billion.
Adams said several events played a part in June’s results; two casino resorts opened on the Atlantic City Boardwalk, legal sports betting launched in Delaware and New Jersey, and Detroit’s casinos benefitted from a workers’ strike that closed Caesars Windsor, across the river in Ontario, Canada.
“For the rest of the U.S. jurisdictions, the bustling economy and an extra Saturday account for the exceptionally good month,” Adams wrote.
Atlantic City gaming revenue rose 1.8 percent in June and Detroit was up 5.3 percent. Meanwhile, Delaware, which launched sports betting at the state’s three racetrack casinos, saw revenue rise 25 percent in the month.
Adams also cited the nation’s economy, with jobless claims at their lowest levels in 45 years and wages up 2.8 percent.
Massachusetts gaming revenue – which for now includes only Penn National Gaming’s Plainridge Casino – was up 6.4 percent. Next week, MGM Resorts International will open the $960 million MGM Springfield, the state’s first full-scale resort-casino.
“The opening of MGM Springfield is bound to negatively affect (Plainridge), as well as impact the two Indian casinos in Connecticut,” Adams said.
Gaming revenue increases in Maryland (up 14.1 percent) and New York (an 11.4 percent jump) were attributed to new casinos entering the market in the past 18 months. The 9 percent gaming revenue increase in Illinois during June was due to state’s growing dependence on video lottery terminals in bars, taverns and other locations that sell alcohol.
In June, Illinois VLTs generated $121.7 million in revenue, up 17 percent from June 2017. The number of VLTs increased by 8.9 percent to 29,283 units. For June, casino win was also up 1.7 percent, but the number of people entering casinos dropped by 3.4 percent to 937,196.
“The trend, every month, is for more VLTs and fewer people going to casinos, not a healthy direction for the casinos to be going,” Adams wrote.
Adams said many questions await the industry in the second half of 2018, including the performance of MGM Springfield, the addition of sports wagering to Mississippi and potentially other states, if the strong economy continues, and how the November elections might change the mood of the country.
“Stay tuned,” he wrote.
CDC Gaming Reports distributes the Adams Revenue Revue to premium subscribers.
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
