As 2014 turned out to be a flat year for casino revenue, there is no doubt the year ended strong, which has continued into the first part of 2015. Atlantic City’s eight casinos took in revenues 19% higher than the previous year. Even when the four casinos now closed are factored in, revenues are up about 1% from a year ago. While it may not seem like much, Atlantic City has been on a sharp decline for some time now, and anything helps.
The Las Vegas Review-Journal reported in late January that two gaming analysts were projecting rebounds in 2015 for regional casinos, especially those in the South and Midwest. “Several data points have developed which could point to the beginning of a recovery,” said Thomas Allen, a Morgan Stanley gaming analyst. One factor pointed to for this recent surge is lower gas prices. One demographic the industry has seen a spike in is lower-income consumers, who are more likely to be impacted by lower gas prices.
The Baltimore Sun cited data which would seem to be contrary, if you didn’t take into consideration a few factors. They point to December’s $85.6 million in revenue, and January’s $84.9 million as being slight dips from the record setting $90.2 million from November. However, the revenues in summer and fall were way up, largely due to the brand new Horseshoe Casino Baltimore, which opened in August. It’s easy to write off the dip as the novelty of a new casino wearing off.
For Maryland, January revenues were actually up $18 million, or 28% from a year before. Five of six casinos in the St. Louis area also reported upticks on this January compared to last year. Detroit’s three casinos, soared 15% above revenue from January 2014.
