Tropicana is in trouble.

FLASH1296

Well-Known Member
#1
Comparing the Tropicana's Revenue statements for Nov. and Dec.,
(with the advent of 4 deckers and the elimination of 8 deckers) we see the following:

Number of Tables dropped from 72 to 70.

BJ "handle" [money put into play] dropped from $18.8 to $17.3 million.

Earnings from BJ dropped from $2.573 million to $2.315 million.

The "table hold" dropped, [slightly], from 13.7% to 13.4%

The decrease in hold was perhaps less than what one would expect
following the improvement in gaming conditions.

The bad news is that The Tropicana needed to show improvement to their bottom line.
They failed. The Total Casino Win dropped significantly from $26,021,000 to $24,036,000.
The (monthly) loss of nearly two million dollars is a decrement of 7.6%


link: http://www.njccc.gov/casinos/financia/mthrev/docs/2008/200812revenue.pdf
 

21forme

Well-Known Member
#2
AC vs PA slot parlors

Concerns about the stock market and unemployment haven’t stopped us from spending millions of dollars more at Pennsylvania casinos and on the state lottery.

Betting has increased 19 percent at Philadelphia Park Casino in Bensalem when you compare the final months of 2007 and 2008. Wagers were up almost as much at Mohegan Sun in Wilkes-Barre. Even Harrah’s Chester Downs did slightly better than October through December 2007.

It was a very different story in Atlantic City.

The New Jersey Casino Control Commission is reporting an 18.7 percent drop in revenues. And, from the looks of it, some of that money probably went to Philadelphia Park.

(Dead link: http://www.phillyburbs.com/news/local/the_intelligencer/the_intelligencer_news_details/article/27/2009/january/22/economy-hasnt-stopped-gamblers.html) _Link to full article_
 
#3
21forme said:
Concerns about the stock market and unemployment haven’t stopped us from spending millions of dollars more at Pennsylvania casinos and on the state lottery.

Betting has increased 19 percent at Philadelphia Park Casino in Bensalem when you compare the final months of 2007 and 2008. Wagers were up almost as much at Mohegan Sun in Wilkes-Barre. Even Harrah’s Chester Downs did slightly better than October through December 2007.

It was a very different story in Atlantic City.

The New Jersey Casino Control Commission is reporting an 18.7 percent drop in revenues. And, from the looks of it, some of that money probably went to Philadelphia Park.

(Dead link: http://www.phillyburbs.com/news/local/the_intelligencer/the_intelligencer_news_details/article/27/2009/january/22/economy-hasnt-stopped-gamblers.html) _Link to full article_
The solution for AC is to simply do something that the PA and DE places can't- more tables! The slot players are gone. They're not coming back. Time to get over it and attract a different kind of customer.

But I don't think they want to hear that. It seems every time I go down there the tables are more crowded but fewer are open.
 

21forme

Well-Known Member
#5
Automatic Monkey said:
The solution for AC is to simply do something that the PA and DE places can't- more tables!
You're forgetting it takes a 3 digit IQ to figure that out.

BTW, I got an email survey from Showboat last week. Seems they are putting out feelers about going all non-smoking.
 

FLASH1296

Well-Known Member
#6
A.C. Trop's BJ revenue continues to decline



See:

(Dead link: http://www.njccc.gov/casinos/financia/mthrev/docs/2009/200901revenue.pdf)

January handle: $18,783,954

January profit: $2,039,135

Blackjack "Hold" 10.9%


Download this revenue statement.

See how two (2) casinos actually LOST MONEY at Caribbean Stud Poker !

See how low the BJ "hold" is at The Borgate and Trump Plaza.
See how high it is at The Trump Marina.

See which casino had a baccarat "hold" that far exceeded 100% --

which is literally impossible --

as 100% hold means that the amount "won" is identical to the sum of the money put on the tables.
 

21forme

Well-Known Member
#8
Automatic Monkey said:
What looks interesting is that the slot revenue is down everywhere and the table game revenue is now a much larger percentage of total.

Good. More tables please!
Think they're smart enough to figure that out?
 
#9
I Didn't Run the Math

If you drop bj tables one should expect bj revenue to drop. Is the drop in bj revenue equal to the decrease in bj tables?
 

ChefJJ

Well-Known Member
#10
Opinion said:
If you drop bj tables one should expect bj revenue to drop. Is the drop in bj revenue equal to the decrease in bj tables?
Good question...I just did quick division to figure out that:

BJ Earnings fell 10% while
Number of BJ Tables were decreased 2.8%

Sounds like the Scoblete gang is hitting the Trop hard :grin: They've been touting the 4D conditions hard in the BJI Newsletter.

good luck
 

FLASH1296

Well-Known Member
#11

The number of tables is pretty much irrelevant.

It is not like they will turn players away by not opening BJ tables.

The "handle" or "drop" is the total amount of money that the players bought chips with.

That, of course, is very relevant.
 

ChefJJ

Well-Known Member
#12
FLASH1296 said:
BJ "handle" [money put into play] dropped from $18.8 to $17.3 million.

Earnings from BJ dropped from $2.573 million to $2.315 million.

The "table hold" dropped, [slightly], from 13.7% to 13.4%




The bad news is that The Tropicana needed to show improvement to their bottom line.
They failed. The Total Casino Win dropped significantly from $26,021,000 to $24,036,000.
The (monthly) loss of nearly two million dollars is a decrement of 7.6%
So if the handle decreased by 8% and earnings dropped 10% , you're either seeing a near-term discrepancy or that the "better games" are affecting their bottom line? Interesting.

About the last statement, they didn't lose 7.6% between the months, rather they saw that much of a decrease in revenue, right? If the Trop is "Winning" $24M a month, how much freaking expenses do they need to cover?

good luck
 

21forme

Well-Known Member
#13
The number of tables is the TOTAL number of tables physically there, and has nothing to do with how many tables are OPEN for play, generating revenue. All the AC casinos have had less than 25% of their tables open the last few months, except on weekends.
 

ChefJJ

Well-Known Member
#14
21forme said:
The number of tables is the TOTAL number of tables physically there, and has nothing to do with how many tables are OPEN for play, generating revenue. All the AC casinos have had less than 25% of their tables open the last few months, except on weekends.
Isn't that the truth...one craps table open has been the norm in most joints when I've been there lately. Makes things tough to get away from a crowd. :flame:

good luck
 

FLASH1296

Well-Known Member
#15
ChefJJ,

You asked:

"If the Trop is "Winning" $24M a month, how much freaking expenses do they need to cover?"

The casino's overhead, in the case of Atlantic City, is dominated by huge interest payments on bonds.

 

ChefJJ

Well-Known Member
#16
FLASH1296 said:
ChefJJ,

You asked:

"If the Trop is "Winning" $24M a month, how much freaking expenses do they need to cover?"

The casino's overhead, in the case of Atlantic City, is dominated by huge interest payments on bonds.

Gotcha. Thanks, FLASH. Do you happen to know what their monthly debt service is for these bonds?
 

FLASH1296

Well-Known Member
#17

No I do not have that info'.

When a N.J. casino threatens bankruptcy, it is generally on the heels
of their failure to makes a debt service payment, e.g. Resorts
 

ChefJJ

Well-Known Member
#18
FLASH1296 said:
When a N.J. casino threatens bankruptcy, it is generally on the heels
of their failure to makes a debt service payment, e.g. Resorts
Yeah, what's the latest with Resorts? I'm staying there for a couple nights Sunday (yes it's not a top caliber hotel, but free :joker:) and like it for my AC base...great craps environment when more than 1 table is open :flame:

good luck
 
#19
They'll turn ME away!

If I walk into a casino and see only a few tables open and they are packed, I will immediately bail and go elsewhere... quickly... instictively... rapidly. I would rather not play at all than play under adverse conditions. I have to disagree with you on that one, Flash. Not opening up tables can have an effect on players and their action.

Too many tables open and you have too many dealers standing around twiddling their thumbs but not enough open and the few that ARE open are packed in tight, you undoubtedly will have a percentage of people walking out the door to the casino down the road!

Allow me to go on to another related subject and an additional related subject that coincides with another post on losing slot business in AC. Who the hell knows of Tropicana's going to 6 decks and about those couple of 4 deck tables ANYWAY? I mean in the general public and not here locally on BJINFO. Is there anything about this in their mailers and emails out to the public? Nope...nothing... not Jack Doodly SQUAT! Their mailers and email advertisements babble about room offer deals for $49 and things like that but nothing about any quality of games issues. If it were me, I would want the "most bang for my buck" and I would push to the general public about a positive change that is in the best interest of players (and sneakily go into how all those other casinos, such as Harrah's have rules that suck and are there to jack you, the player for all it's worth, etc.----I never see anything like this so do all the casinos have little agreements not to "badmouth" each other?). I would want any strategic move like that to pay off in increased volume of business. How can ANY move designed to hopefully increase volume of business be effective if no one knows about it?

The next thing, pertaining to PA slot parlors. Point out the difference to the general public the difference between a standard slot and a "video lottery terminal"---They don't know... Hell, I didn't know (until Flash told me the other day). You also have to point it out in terms their feeble brains can understand, much in the manner the 6 to 5 blackjack rule is pointed out so well by Ken Smith... in terms of flat out dollars and cents! People don't understand the impact of 1.39% and it doesn't compute in their limited brain function just the way a 5% doesn't register in the brain of the typical slot player. You tell them,"THIS IS GOING TO COST YOU AN EXTRA $25 AN HOUR TO PLAY DUE TO DECREASED PAYOUTS" and THAT registers. Will they figure it's to their benefit to spend the $25 bucks in gas after that to get to some better odds of winning or at least lose less quickly?

I WANT a casino like Tropicana that has slightly better rules or games than Harrah's to do well. They have obstacles though... the bad press they received with regard to their rooms and general cleanliness didn't help them one bit. The bedbug issue... the standard AC joke for a time was [When the Tropicana desk clerk hands you the room key and says,"Sleep well and don't let the bedbugs bite."---They MEAN it!]. This is something that only the passage of time can fix and I'm sure the blast of bad press with regard to this didn't help their bottom line.

How do you maximize advertising value to increase volume of business? It's easy to do but as one of my fellow BJINFO members, 21ForMe pointed out, you have to have management with IQ's that hit that three digit mark!
 
Last edited:

ChefJJ

Well-Known Member
#20
Tarzan said:
Who the hell knows of Tropicana's going to 6 decks and about those couple of 4 deck tables ANYWAY? I mean in the general public and not here locally on BJINFO. Is there anything about this in their mailers and emails out to the public?
I agree with your drift, Tarzan, for sure. But I think there is at least 1 billboard touting the 4 deck BJ games at the Trop on the way to AC from Philly (either on the Walt Whitman bridge or on the AC Expressway).

But good points nonetheless.

good luck
 
Top