Atlantic City Celebrates Best Casino Revenue for February Since 2011

Atlantic City Sign on Casino BuildingLast month, Atlantic City’s nine casinos brought in a whopping $275.1 million in total gaming revenue, an 18.4% over last February’s numbers. These figures were gathered from the state Division of Gaming Enforcement.

Atlantic City continues on its astonishing 21 consecutive reporting period hot streak of monthly revenue increases. The growth period started nearly two years ago in June when Hard Rock Hotel & Casino Atlantic City and Ocean Casino Resort reopened their doors.

“Atlantic City reported strong results in February, which were aided by the calendar with its rare fifth Saturday,” said James Plousis, Casino Control Commission Chairman. “Revenue from slots, table games, internet wagering and sports wagering all grew. Internet wagering results were prominent, and the sports wagering handle already surpassed $1 billion for the year. These gaming options are providing important revenue streams while broadening the industry’s appeal.”

The Strongest February in Nearly a Decade

Last month’s results were the strongest for February in Atlantic City since 2011. In 2011, 11 casinos were in full swing, as compared to the nine currently operating in today’s Atlantic City.

According to Rummy Pandit, executive director of the Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism at Stockton University, says the milder weather and efforts of city businesses to feature more on-site resort entertainment are among the biggest factors in increased visitation and revenue.

“The wintry weather that likely suppressed visitation, and in-turn land-based gaming revenues, in past years was not as much a factor in February 2020,” Pandit said. “The especially mild weather, and efforts by city businesses to bring more shoulder season entertainment to the resort, has led to increases in visitation.”

Ocean Casino Reports Largest Monthly Increase

Ocean casino saw the largest monthly revenue increase in February of the city’s nine properties. The resort took home $20.77 million in casino win, that’s a 51% increase from February 2019’s numbers.

This time last year, Ocean was changing ownership and leadership.

Ocean’s CEO, Terry Glebocki, said the second month of the year was an “incredibly strong month for the property” and said that slot business was up an incredible 88%.

Glebocki, the only woman chief executive officer of an Atlantic City casino, was officially named CEO last December. She worked hard to listen to AC customers’ concerns and address their needs.

“The property had a history of being tone-deaf to most A.C. customers and we’ve overcome that,” Glebocki said. “We were voted No. 1 casino in A.C. (in 2019 by Atlantic City Press) for best rooms, best comps and best players clubs. That’s because of what we stand for, giving people a fair deal.”

Ocean recently revamped their property, including revitalizing their dining options, creating a convenient new elevator bank that offers direct access from the hotel level to the casino level, and opening up their new Exhale Spa + Bathhouse, which was voted the top spa in New Jersey by Spas of America.

Online Gambling is a Safeguard for Coronavirus

While Atlantic City continues to see an uptick in their casino revenue, property owners are well aware of the toll COVID-19 could cause on the gaming industry, and how the impact could reach their shores.

Their strategy is to use online betting as a viable safeguard, should on-site gambling get impacted negatively.

The great news is that online betting is also up in the state and experienced a boost in February as well. Internet gaming revenue for February was $52 million, an increase of 63.7% over this time last year.

“Online casinos and sportsbooks should help buoy their land-based casino counterparts in Atlantic City should the coronavirus impact casino operations,” said Eric Ramsey, analyst for PlayNJ.com. “The Golden Nugget’s online casino already generates more revenue than its retail casino, and others have been closing the gap. That online revenue stream could prove vitally important in the coming months.”

Should the situation with the coronavirus outbreak get worse, online betting will be looked to more than ever as a buffer to get the industry through trying times.

“New Jersey’s year-over-year gains remained impressive in February, but we are in uncharted territory now,” said Dustin Gouker, lead analyst for PlayNJ.com. “Obviously there are bigger concerns with coronavirus, but the NBA is a major revenue driver for New Jersey’s sportsbooks. So the suspension of the season, in addition to suspensions of other sports, will undoubtedly have a significant effect.”

Stay tuned to see if casino gaming revenue continues on its upward trajectory in Atlantic City, or if New Jersey will get impacted by the coronavirus in the coming month.

Penn National Gaming Still Looking to Sell LV Tropicana

Penn National Gaming is one of the country’s biggest and most successful casino operators. The company has made headlines recently for some of its major deals and acquisitions. This week, officials within Penn Gaming announced they’re still looking to sell LV Tropicana.Tropicana Las Vegas Casino Logo

The sale of this casino-resort has been discussed for years. It’s a popular venue off the Strip and is likely to fetch a high price. Today, we’re going to look at some of the Tropicana’s recent deals and talk about when the company is looking to sell this property in Las Vegas.

Penn Gaming Purchases 36% Stake in Barstool Sports

There’s a good chance you’ve seen Penn National Gaming’s name in the headlines recently. Recently, this company paid $136 million for a 36% stake in sports blog Barstool Sports. With this investment, Barstool is now valued at an incredible $450 million.

The decision to work with this company makes sense for Penn National Gaming. Barstool Sports has one of the largest social media followings in the country. Most feel that the deal will help to bring significantly more people to Penn Gaming’s casinos.

Ron Baron, a billionaire investor in New York, believes this deal will prove extremely valuable for the casino company.

“Not only are they going to make a lot of money on this investment for this $150 million and buy the rest of it out from the founder, but also it’s going to increase the traffic in their casinos,” Baron said. “It’s going to be worth a ton.”

It’s clear that Penn National Gaming is looking to expand. Interestingly, the company wants to start generating more revenue from property sales. As a result, officials are now looking to sell the LV Tropicana. Based on several reports, this sale will take place sometime in 2020.

The Push to Sell the LV Tropicana Continues

The Tropicana Hotel-Casino in Las Vegas is one of the city’s most popular venues not located off the Strip. It opened to the public all the way back in 1962. Since that time, it’s changed ownership hands several times.

Several major renovations have also been made to this property. In 1986, the owners built a new 21-story Island Tower here. In 2007, a massive $2 billion expansion project was planned. Due to the financial crisis, these plans were eventually scrapped.

In 2015, Penn National Gaming purchased this property for $360 million. The company has worked hard to make this a more popular with locals and tourists. Unfortunately, it appears the revenue generated from this hotel-casino is not as high as initially projected.

As a result, Penn National Gaming is looking to sell LV Tropicana. Jay Snowden, CEO of Penn Gaming, told the media that several offers for this venue have already been presented.

“On the Tropicana side, there’s been so much unsolicited interest that it’s just very active,” he said. “We got another call two days ago with interest in potentially acquiring some or all of the land holdings there. It’s very active.”

Snowden claims this sale is a real priority for the company. Competition in the US casino industry continues to grow. Let’s take a look at how Penn Gaming performed last year.

Penn National Gaming’s 2019 Revenue Figures Are Released

The US casino industry is in an interesting place. More states have recently begun to expand their laws to allow more casino gambling options. As a result, many companies are beginning to earn significantly more revenue.

On the other hand, competition is growing in this industry, too. Some of the biggest companies are controlling much of the market. Penn Gaming’s investment into Barstool Sports was expected to help with this issue.

Unfortunately, the company recently reported revenue losses in 2019’s fourth quarter. The company posted revenue of $1.34 billion last quarter. This is significantly less than analysts initially projected.

This isn’t something to be concerned about, though. Most feel that this company’s share prices will continue to rise throughout 2020. Once the company is able to sell LV Tropicana, these shares will increase significantly.

It’s an exciting time for Penn Gaming and the US casino industry as a whole. Stay tuned for more casino news over the next few months!