New Jersey Soars but Land-Based Lags
Revenues up by 15 per cent in New Jersey, but land-based unable to compete with online and sports betting returns.
New Jersey’s online and retail sportsbooks handled nearly $1.35bn in wagers in January, up 10 per cent from $1.2bn in December.
US OPERATIONS
Revenues from Atlantic City’s nine casinos increased by nearly 15 per cent in January compared to a year earlier giving cause for more optimism as the spring season approaches. However, sports betting led the way generating more than $1.348bn, the highest monthly total ever for the state, surpassing the $1.3bn set last October. Online gaming also set another monthly record generating $137.8m which was 33 per cent better than January 2021, and 157 per cent higher than January 2020.
Land-based gaming came in at $183.6m, up 15 per cent compared to January 2021 but down more than four per cent from January 2020, down more than 5.2 per cent from 2019 and down 10.4 per cent from 2020
Seven casinos reported less in-person gambling revenue last month than January 2020 or January 2019 with only Hard Rock Hotel & Casino Atlantic City and Ocean Casino Resort generating more revenue from land-based gambling.
Century Casinos to buy Nugget Casino Resort in Reno
Nevada
Century Casinos is to buy 50 per cent of Smooth Bourbon and 100 per cent of Nugget Casino Resort from Marnell Gaming for $195m. Te company will also have a five- year option to purchase the remaining 50 per cent of PropCo for $105m plus two per cent per annum.
Te company will purchase its 50 per cent interest in PropCo for $95m, which represents a capitalisation rate of 7.9 per cent based on preliminary 2021 numbers. PropCo owns the land and building underlying the Nugget and will enter into a lease of the property to OpCo for an annual rent of $15m. Following required approvals from the Nevada Gaming Commission, the company will purchase 100 per cent of OpCo for $100m.
In connection with the
“It is encouraging to see Atlantic City’s recent positive momentum continue in the winter months,” said NJ Casino Control Commission Chairman James Plousis. “Te casinos’ recent performance provides cause for even more optimism as the spring season approaches.”
“Sportsbooks have dealt with neighbours legalising mobile sports betting before and continued to thrive, and it will take a few months before we know for certain the true impact of New York,” said David Danzis, an analyst for
PlayNJ.com. “But January’s results are encouraging, showing that New Jersey’s industry can weather New York’s expansion.”
New Jersey’s online and retail sportsbooks handled nearly $1.35bn in wagers in January, up 10 per cent from $1.2bn in December. Betting volume was up 40.7 per cent year over year, from the $958.7m generated in January 2021. More surprising, it topped the previous state record of $1.3bn in betting reached in October — which was a US high until New York debuted.
acquisition, Goldman Sachs Bank USA has provided a commitment letter for $350m in senior secured term loan financing to support the acquisition, refinance Century Casinos’ existing debt and for general corporate purposes and a $30m senior secured revolving credit facility. On a pro forma basis upon acquisition of OpCo, the company anticipates net leverage to be 3.0x.
“We have been looking at entering the Reno market for a long time, and we believe the Nugget is a perfect fit for our portfolio. We look forward to welcoming the great team at the Nugget to Century Casinos,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. “We believe there is a lot of upside to this transaction and that we identified some areas of improvement to continue the Nugget’s growth. We expect the Nugget to seamlessly integrate and provide added synergies for Century Casinos’ US portfolio.”
US
DraftKings' CEO, Jason Robins, has claimed that most wagers were made illegally in the United States despite Super Bowl LVI breaking records.
Legalised sports wagering is currently available in 30 states. Nonetheless, Robins outlined that the three most populous US states – California, Texas, and Florida – with approximately 90 million people combined, do not permit legal sports gambling. Robins asserts that around 30 million individuals are regularly betting illegally throughout the country, illustrating the desire for sports betting in places that do not already have licensed bookmakers.
DraftKings released its fourth- quarter results at the end of February, revealing more than double the previous year's sales, but suffering a net loss of $1.52bn. Te revelation caused a 17 per cent drop in the company's stock price.
US – Churchill Downs is to withdraw from B2C online sports betting and gaming over the course of the next six months. The operator states that the decision has been made as it does not see a path that the business model delivers predictable and acceptable margins for at least several years.
This comes as the group reflects that it “had high hopes for the potential to build a profitable business in the space” upon the overturning of PASPA in 2018. “We are always committed to building long- term value for our shareholders and consistent with this commitment when we see that an investment is not progressing as we had planned, we will redeploy the resources and capital to other growth projects or return the capital to our shareholders,” William Carstanjen, CDI CEO and Director, explained in the group’s latest earnings call.
“We have proven with our past decisions that we are willing to walk away from businesses where we do not see a secure enough path to consistent profitable growth with an acceptable return for our shareholders.”
US – Pariplay has annoucned the appointment of Matthew Kelemen as Business Development Director for North America. Based out of Connecticut, Kelemen brings more than 23 years of iGaming
experience to the provider, holding senior roles at companies including Boss Media, RealTime Gaming and Peak Interactive. He will be the supplier’s first US-based employee as it looks to make major inroads into the continent.
NEVADA – The 53rd World Series of Poker, following a successful 17-year run at the Rio All- Suite Hotel & Casino, moves to the Las Vegas Strip for the very first time at Bally’s – Las Vegas, the future Horseshoe, and Paris Las Vegas Hotel & Casino, and will feature the WSOP’s inaugural Master of Ceremonies, Vince Vaughn. The move to the Strip builds upon the legacy for Caesars Entertainment’s World Series of Poker, as the first- ever tournament was played at Las Vegas’ original Horseshoe in 1970.
LOUISIANA – Sporttrade’s strategic partnerships with Penn National Gaming in Louisiana and Caesars Entertainment in Indiana will expand Sporttrade’s sports betting exchange platform to be accessible to eligible participants within the specified states starting in 2023.
“We are incredibly humbled to be partnering with two of the most recognised Gaming leaders to bring our differentiated sports trading platform to customers in Louisiana and Indiana,” said Sporttrade CEO, Alex Kane.
WIRE / PULSE / INSIGHT / REPORTS P23
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