September 2015 was good Y:Y comparison for most of nation. We believe this is partially due to the calendar benefit of having all of the Labor Day three-day weekend in September 2015 versus September 2014, which only had one of the three days or the Monday of Labor Day. While the nation is experiencing good growth for the first nine months of 2015 (+5%), for the later part of 2015 we are expecting some of that growth to slow as comparisons to better results generated in later 2014 will be more challenging to overcome.
Recent News: While comparing September 2015 versus September 2015, NV gaming revenue (Slot only, see note below) declined by -2%. In the same timeframe, the amount of flights into McCarran was up +6%1. In JSA’s opinion, this is a macrocosm of the country in that we see more “value bookings/trips” than legitimate organic growth with our client base.
Plainridge Park Casino (MA) generated $12M, while RI declined -$2.4M and CT gained. Maryland – A full year has passed since Horseshoe Casino Baltimore opened. Interestingly, Horseshoe Casino Baltimore decreased by -1% while the remaining casinos gained from +5% to +15%2. This is consistent with the positive calendar growth around the US for September 2015 vs. September 2014. New Jersey – We predicted with the closing of the Revel, Trump Plaza and Showboat in September 2014 that one year forward, the remaining properties would be better off and show outright growth similar to national results. Our prediction proved well true in September 2015 as the slot win for AC grew from $147M to $153M, or +4% versus September 2014. While Table revenue gained +26%3- it was largely due to an extraordinary hold percentage increase (the casinos played luckier) – we do not look at AC revenue with table revenues, as is footnoted below. Lastly, again, consistent with our “better off” predictions, the existing casinos spent $6M less in promotional coin while gaining $6M in additional slot win (or a +$12M swing on GOP), strengthening the argument that the failed operations were “buying” a lot of the business with no benefit to profit. For YTD 2015 vs 2014, we see most areas of the country improving or with slower declines in areas that had been previously declining faster. Please remember, too, that some of the advancing states – AR, FL, MD, OH, LA – all added more facilities in 2014. MA opened its racino in June 2015. For this G&L report, we use the published figure by the agency and we do not factor out new properties opening or properties closing. For our clients or those in need of specialty research, we can provide “same store” breakdowns, where available. That is to say, by excluding new outlets or outlets that have since closed, comparisons are on equal footing, making data more directly comparable. We hope you find the information useful. If you have any questions or needs in regards to this information, do not hesitate to contact us.
1Passenger traffic at McCarran surges nearly 6 percent in September”, Las Vegas Review-Journal, October 29, 2015 2MD Lottery, http://gaming.mdlottery.com/maryland-casinos-generate-87-5-million-in-revenue-during-september/, Accessed 10/13/15 3NJ Div. of Gaming Enforcement, http://www.nj.gov/oag/ge /docs/Financials/PressRel2015/September2015PressRelease. pdf, accessed 10/17/2015 Jay Sarno has 20+ years of experience in the Hospitality and Gaming Industry. Jay consults on casino marketing segmentation programs, software product development and technology solutions evaluations, selections and implementations. Jay has implemented over 20 data warehouse systems and currently also teaches courses in Hospitality Management for Richard Stockton College of NJ. Jay can be reached at JSA2002@comcast.net and welcomes your comments and questions.
* Note: JSA calculates monthly trends in adjusted total win for all states. We use adjusted total win for a variety of reasons, but mostly to provide a consistent basis. Many states report combined slot and table revenue and our reporting reflects the same. Some states separate slot and table win and where this occurs we report the combined total. The exceptions to the separate slot and table win are NJ and NV where table revenue is a large component of total win and often generates very volatile results. So, for better picture of the overall