Weather issues in the Northeast sent Atlantic City gaming revenues tumbling in March. But for the rest of the country, the sun shinned bright.
National gaming revenue during March hit $3.837 billion, an increase of 4.89 percent from a year earlier, according to figures compiled by Reno-based gaming analyst and consultant Ken Adams.
New Jersey’s gaming market was the only state of the 21 jurisdictions with commercial casinos and video lottery terminals that had an off month, much of it to blame on weather conditions, which saw four nor’easters heading the area.
Adams wrote in his monthly Adams Revenue Revue, which he produces for CDC Gaming Reports, that Atlantic City has seen a steady decline in visitation, down from a peak of 35 million in 2006 to 24.1 million in 2017.
“It will take a great amount of gambling online to make up for the 11 million people who no longer come to gamble on the Boardwalk because they have other choices closer to home,” Adams wrote of Atlantic City bustling Internet gaming market.
Meanwhile, the major gaming states all had positive months in March. Nevada gaming revenue rose 3.4 percent to $1.024 billion, Pennsylvania was up 3.8 percent to $300.5 million, Louisiana grew revenue 6.9 percent to $311.1 million, and Mississippi was up less than 1 percent to $202.2 million.
Illinois grew gaming revenue 8.9 percent to $272.1 million. However, Illinois’ 10 riverboat casinos saw gaming revenue decline 1.7 percent to $128.3 million, but the state’s VLT market of 28,992 games saw gaming revenue jump 19.2 percent to $142.8 million. There more than 3,000 more VLTs operating in Illinois in March than there were a year ago.
Adams said Illinois’ issues are like Atlantic City. Casino visitation was down 6.2 percent from a year ago and almost 29 percent from March 2013, before the introduction of VLTs.
Two weeks ago, Boyd Gaming Corp., which operates Par-A-Dice Casino in East Peoria, Ill., as well as the Blue-Chip Casino in neighboring Indiana, said it was spending $100 million to acquire Illinois-based Lattner Entertainment Group, gaining nearly 1,000 VLTs in 220 bar, tavern, and other locations across state.
Deutsche Bank gaming analyst Carlo Santarelli said Boyd’s transaction had “an element of if you can’t beat’em, join’em,” regarding the competition between VLTs and Illinois’ riverboat casinos.
As for other states, Maryland, which saw the opening of the MGM National Harbor complex outside Washington D.C., in December 2016, experienced its largest gaming revenue month on record during March – $150.1 million.
National Harbor generated 40 percent of state’s total and forcing the competition in neighboring Baltimore – Horseshoe Casino Baltimore and Maryland Live! – to add amenities and step up marketing efforts.
Adams said it would be “an uphill battle,” but with no competition entering the area in the coming years, “the worst of the loss of market share is probably over.”
CDC Gaming Reports distributes the Adams Revenue Revue to premium subscribers.
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