Atlantic City Shutdown Misses Peak; 4Q Revenue Usually Drops 17%
Atlantic City shut all casinos Sunday afternoon in advance of Hurricane Sandy. Gaming will likely be suspended through at least Tuesday, possibly longer, with widespread flooding expected. The impact on gaming could be relatively limited given casino wins in 4Q average 17% less than the summer peak. Sandy striking during the week, as opposed to the weekend, should also minimize losses.
Hurricane Sandy Threatens 20% of Caesars Revenue, 30% of Boyd
There are eight companies managing casinos in Atlantic City. Caesars is the largest with four operations and 20% of its revenue generated in this market. Boyd Gaming and MGM Resorts own 50% each of the largest casino in Atlantic City by revenue, the Borgata. Boyd consolidates the Borgata’s results, which accounted for 30% of revenue during the last 12 months.