These pint-sized casinos also happen to be the fastest and most aggressive movers on the NJ online casino front.
Since 2014, three AC properties have grown their average monthly land-based gaming revenue by approximately 40 percent or more.
Comparatively, the Caesars conglomerate only saw its revenue climb 4.77 percent over an equivalent span. (That currently consists of Bally’s, Harrah’s, and Caesars.)
At 18.05 percent, Borgata fared somewhat better. But its percentage growth margins was still less than half of the industry’s top performers. Although in fairness, on a dollar-per-dollar basis, the overwhelming market share leader did experience the greatest uptick.
A comparison of January through April revenue for this year and last reveals that, so far, 2017 has been the best year yet for two of Atlantic City’s lesser known brands:
Tropicana has done so well of late that it’s threatening to shed its middling status in favor to top-tier stardom.
So far in 2017, the Trop has generated more revenue from land-based gambling than all but the Borgata and Harrah’s. And even Harrah’s is only averaging just over $400,000 per month more than the rejuvenated Tropicana.
There’s little wondering why Atlantic City’s smaller brands have thrived in the now consolidated market.
First and foremost, all three have adhered by the concept that in order to make money, you have to spend money.
The explosive growth Golden Nugget has enjoyed since launching in 2012 bodes well for the Hard Rock AC, which will be taking a similar angle. Hard Rock is committing $375 million to the old Trump Taj Mahal before flipping over the open sign in summer 2018.
AC’s smaller casinos have also benefitted from the closure of several properties over the course of the past year. Tropicana and Resorts in particular likely generated a healthy number of new sign-ups from the closures, due to their proximity to the defunct properties, and targeted marketing efforts.
In addition to growing their land-based properties, Atlantic City’s smaller casinos are the biggest movers on the online gambling front, and are currently the nascent industry’s highest revenue generators.
As impressive as their land-based only growth is, when online gambling is factored in, their ascent comes off as nothing short of awe-inspiring.
Since 2014, Tropicana AC has grown its total gaming revenue by a staggering 45.9 percent. Resorts and Golden Nugget have done one better, with growth margins of 79.7 percent and 78 percent, respectively, in the past three years.
By contrast, while online gambling has had a complementary impact on Borgata and Caesars revenue, they haven’t had much success growing their online verticals. That said, their potential for growth was restricted. Both brands got off to a very fast start when the industry went live in November 2013.
The above chart also suggests the following:
Given this, it’s little wonder why prominent brands in states currently considering online gambling legislation (Pennsylvania in particular) are OK with the status quo, while lesser brands are avid proponents of legalization.
In either case, it looks as though Atlantic City’s smaller brands could be the catalysts behind a potential boom. That’s largely thanks to their performance online.