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Posts Tagged ‘Harrah’s’

ARCHIVE – Mid-Atlantic VLT/Slot Machine Revenue

Posted by jkarmel on June 2, 2010

[ARCHIVE: originally published by GA on November 10, 2008]

Lately, I’ve been wondering about the potential revenue of the Maryland casinos and how the economic downturn has impacted slots revenue in the mid-Atlantic. So, I did a little research and came up with the following data:

The highest monthly revenue per machine was Harrah’s Atlantic City at $13,633 per slot machine in August and the lowest was Dover Downs at $5,145 for September. It’s a quick and dirty analysis that doesn’t yet include data from 2007, but the above graph does show that:

* VLT/slots revenue was relatively consistent for the two Philly-area casinos before September’s nosedive
* Atlantic City retains a seasonal effect: summertime revenues climbed more than in the other properties
* mid-Atlantic gaming is taking a hit this Fall as the economy declines, though the decline is especially steep in the ‘destination’ casinos of Atlantic City

What could this mean for Maryland casinos? Still much to be worked out, but I see the I-95 casinos (esp. Laurel & Baltimore) as fairly similar to the Philly properties in terms of location and local market as opposed to the ‘destination’ resorts of Atlantic City. This could mean that they are more recession-proof than the Atlantic City casinos, now experiencing their worse downturn in the 30-year history of gaming in south Jersey.

The DE racinos need more analysis, but at this point, the Ocean City, MD property will likely be more like one of these, sans hotels or any other amenities for that matter. The Ocean City location is legally banned from being much more than a bare-bones racino.

OK– just a few points here for now: a little speculation, nothing too scientific.

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