Seven trending gaming industry stories that will impact your casino Revenue Strategy.
1. AC Numbers Don’t Tell the Whole Story
At first blush, the news sounds bleak—overall casino gambling revenue for Atlantic City was down 2.7% in July. But look closer.
Turns out the numbers include comparisons to when the shuttered Trump Taj Mahal Casino Resort was open. If you take the Taj Mahal out of the equation, the news is actually pretty encouraging. The city’s seven remaining casinos saw their gambling revenues increase by 3.9%. This includes internet gambling, which grew by 18.5%.
“While there are fluctuations in monthly revenue, it is encouraging that Atlantic City’s current operators’ casino win figures are up nearly 10% for the year so far, illustrating that overall, there is continued stabilization in the industry,” says David Rebuck, director of the state Division of Gaming Enforcement.
2. For NJ Online Gamers, Names Matter
In the most recent breakdown of gaming revenues in the state put out by the New Jersey Division of Gaming Enforcement, online gamblers are more loyal to land-based brands from Atlantic City including the Golden Nugget, Tropicana, Borgata, Resorts, Caesars and Harrah’s. These brands are currently dominating the market with a collective 64% market share.
“A company’s online performance seems predetermined by its brand’s presence in New Jersey,” says author Steve Ruddock.7 trending #casino #revenuestrategy stories Click To Tweet
3. Effective OTA Strategies for Casino Hotels
Outside of Las Vegas and a few other gaming destinations, casino hotels have generally shied away from using online travel agencies to bolster bookings. But Duetto’s Marco Benvenuti says that strategy could be a mistake.
“Knowing when to list your inventory with an OTA and how to incorporate third-party demand into your loyalty strategy will help you innovate and drive profitability in the long run,” he says.
4. How the Venetian Started Macau’s Winning Streak
Since the Venetian Macao opened ten years ago, Macau’s casino revenue has quadrupled, from HK$55 billion in 2006 to HK$217 billion last year. That’s nearly five times the intake of the Vegas Strip. It also spurred HK$200 billion in resort development to create the Cotai Strip.
But the story of how the Venetian Macau came to be shows that sometimes taking a risk — a really big risk, like driving thousands of pilings into what is basically a swamp — can lead to a huge reward.
5. Governor Seeks to Settle Seneca Revenue Sharing Dispute Through Binding Arbitration
According to The Buffalo News, the Cuomo administration wants to settle its casino revenue sharing dispute with the Seneca Nation of Indians through binding arbitration.
Over the past six months, the two sides have been battling over whether the wording in a 2002 compact permits the tribe to end revenue sharing payments after the 14th year of the deal. The Seneca Nation says it does. Gov. Andrew M. Cuomo says it doesn’t. At stake are payments amounting to roughly $100 million annually.
6. Detroit Casinos Hold a Good Hand
Detroit’s three casinos’ combined July revenue of $119 million was slightly up from the same month a year ago, according to the Michigan Gaming Control Board, with MGM in the lead, followed by MotorCity and Greektown.
7. Nevada Casinos Earn Just Shy of $1b in July
According to figures released by the Nevada Gaming Control Board, statewide casino gaming revenue hit just under $998 million, a 1.7% decline from the same month last year but over $100,000 more than the casinos earned in June 2017.
The gains came despite casinos on the Las Vegas Strip reporting revenue falling 7.7% year-on-year.
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