AC nosedive accelerating

[Gonso]

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I was wondering about that too...but since I haven't been there in seven months, I assumed things may have changed. Also Borgata doesn't have 120 tables in their standard room, its about 85.


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I noticed it too, and then I noticed that Borgata only has 120 tables in September, both this and last year. In the other months it still has 85 tables. I guess those extra 35 tables come out for WPT event.

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The "big event" tournaments don't factor into the limit, that's authorized differently. It's not uncommon for one of the small rooms to host tournaments in a special events room with more tables than their actual poker room. The number of tables authorized permanently has more to do with the physical space the casino intends to put them in.

[Dima2000123]

What else can explain why Borgata gains 35 tables once every September, which coincides with a jump in revenues? Do they have a different guy crunching the numbers in Septembers?

The simplest explanation is that those extra 35 tables are those tables in the other room that come out for big tourneys, and that extra revenue is all the tournament juice.

[Lurshy]

And Meanwhile - MGM Grand announces plans to put up the largest hotel / casino / shopping in AC 5 billion $ project on 72 acres next to the Borgata.

Maybe people recognize that old seedy hotels don't attract crowds of fun loving spenders.

[DrewOnTilt]

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What else can explain why Borgata gains 35 tables once every September, which coincides with a jump in revenues? Do they have a different guy crunching the numbers in Septembers?

The simplest explanation is that those extra 35 tables are those tables in the other room that come out for big tourneys, and that extra revenue is all the tournament juice.

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This is likely correct. September is when they host one of the WPT events at the Borgata.

[DrewOnTilt]

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And its not like there arent projects in the works to make this more of a destination that people are going to want to come to.

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There are some developments in place that indicate that at least some casino and development companies grasp the concept that medium priced, attractive properties tend to do better than cheap, dumpy places.

On the other hand, take a look at the upcoming "concert" events scheduled at some of the older properties. KC and the Sunshine Band, Kool & the Gang, and Aretha Franklin are among the recent "big concerts." It's as if some of these places are still stuck in the 1970s.

[cjk73]

Three new hotels in the works (incuding the MGM/Mirage) and room expansion at Harrah's, Borgata, and Taj.

I'm guessing these guys feel they have good reasons for the investments.

[pocketpared]

MGM was supposed to do an AC project with the Mashantucket Pequots from Foxwoods. Foxwoods backed out and opted to do a Poconos project. MGM decided to go it alone. Pinnacle is looking to get out already. They've used the excuse that if AC rezones Bader Field for Wynn they won't build. New projects won't mean more gamblers. It will just take players from the dwindling pool at the other dumps. The enclosed smoking areas haven't even been implemented yet. That and new casinos and slot parlors in nearby states guarantee the decline continues. Hmm...AC..or the Poconos? Where to go? You can't make a silk purse from a sow's ear.

[cjk73]

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MGM decided to go it alone.

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Again, fairly successful company, I'm guessing they know something about the industry...no?

[Poshua]

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MGM was supposed to do an AC project with the Mashantucket Pequots from Foxwoods. Foxwoods backed out and opted to do a Poconos project. MGM decided to go it alone. Pinnacle is looking to get out already. They've used the excuse that if AC rezones Bader Field for Wynn they won't build. New projects won't mean more gamblers. It will just take players from the dwindling pool at the other dumps. The enclosed smoking areas haven't even been implemented yet. That and new casinos and slot parlors in nearby states guarantee the decline continues. Hmm...AC..or the Poconos? Where to go? You can't make a silk purse from a sow's ear.

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There are a whole bunch of projects on the books in AC, at least including Revel, CityCenter East, Pinnacle, and Wynn. It's likely that at least one will not get built the near term, because that would be an awful lot of development at once. This is not because it's a dying market; indeed, the upscale properties continue to perform well. Slot revenues are down but table games and hotel room rates continue to get better for operators. AC has a strong future that will involve shifting from a local casino model to a destination casino model.

Proposed casino projects get scuttled all the time in Vegas (the W Hotel, for example). Is that a sign that Vegas is a dying market?

[pocketpared]

We're talking about AC, not Vegas. The numbers show it's a dying market.