Casino revenues are coming under pressure in the US northeast. And as competition intensifies there are growing rumors that the states are poaching customers from one another, leading to an overall drop for everyone. What’s really happening with the US’s casino properties up north?
US Casinos Under Pressure in the North as Revenue Drops
It seems that the US north is in trouble insofar as the casino industry goes. October saw weaker results. In Pennsylvania, the state’s Gaming Control Board (GCB) gauged the financial indicators at 12 properties, citing the numbers at $252.8 million in terms of amassed revenue in the month. This constituted a 3.5% slump compared to the same period last year.
Breaking down the numbers further, slots saw a 1.7-per-cent-dip, with the total revenue going all the way down to $186.2 million. Table games, while not the most grossing product, also fell the shocking 8.1%, down to $66.5 million.
Meanwhile, Sands Bethlehem continued to post losses all throughout the period. After a rather disappointing September, the operator posted yet another worrying performance indicator in October with tables’ revenue shrinking by 15.9% or $16.1 million.
Not all has been gloom and doom, though, as Parx Casino managed to register a 9% increase, estimated at $15 million, for its tables. Parx did manage to outstrip Bethlehem, too, posting overall $47.2 million against Bethlehem’s $38.6 million.
Meanwhile, in Connecticut, even the tax-exempt tribal gambling operators seemed to be performing rather poorly in October, compared to the same time a year before. Foxwoods Resorts Casino’s results went down 10% and hit $34.4 million.
The most lucrative segment, the slots, also collapsed for no apparent reason, registering the blood-curdling 10.4% in dips. Nevertheless, that was still decent handle, at $437 million. Similarly, Mohegan Sun also lost over 10% of its handle.
The Lurking Danger Called MGM Springfield
Tribes and other operators have not been clueless as to whom has been biting in their results. One possible culprit is the MGM Springfield developed by the namesake brand, MGM Resorts, which opened doors back in August.
The land-based property has been posting solid results on their own, and the tribal operators have been mulling the idea of launching a common project to withstand the threat from MGM Springfield.
However, the claims that MGM Springfield has been a raging success have been refuted by the gaming commission in the state of Massachusetts. According to the supervising body, MGM posted weaker revenue, at $22.2 million opposed to $27 million back in September.
The only companies that seem to be back on their feet are in Atlantic City, which posted 8% increase year-over-year. A respectable number but probably occasioned by the properties’ location, as the city is a hub for gaming action that can easily rival the Las Vegas strip.
With the revenue falling across the board in October, the industry is now preparing for the holidays. Normally, the activity picks off in December, but without any underlying cause for the drop in performance, the stagnation could continue. One possible reason, experts say, is the oversaturation of the market.
It may be time for some casinos to wrap up their activities.