No double down for online gambling


Revenue from online gaming continues to disappoint in New Jersey. The Internet win for April for major players Borgata (BYD, MGM), Caesars Interactive (CZR), Trump, and Golden Nugget came in at $11.4M - less than $11.8M brought in during March. Original forecasts called for a take of over $30M a month in 2014.

Easy access to illegal online gambling operators is thought to be reducing customer traffic. As a result, gaming companies are having a tough time capturing their investments as quickly as anticipated and are turning conservative.

Boyd Gaming says it will cut advertising after recording a $3.2M loss from its Internet gaming business in Q1, while 888 Holdings (EIHDF) is shifting ad dollars to slots.

The total gaming win in New Jersey (online and brick-and-mortar casinos) through April is down 1.2% to $874M. (Full report .pdf)

The impact on brick-and-mortar casino traffic from legalized online gaming has been negligible so far in Nevada as well.

Related: Online casinos face a hurdle from within the industry

Casino stocks: TPCA, PNK, PENN, LVS, WYNN, MGM, MCRI, ISLE, CNTY, IGT, BYI, PTEK, MGAM

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Comments (5)
  • manfredthree
    , contributor
    Comments (3086) | Send Message
     
    We speculate that the sham/illusion of "free slots" of DoubleDown/Facebook will convince a lot of folks new to gaming or slots to never go near a real casino, an online casino, or even "free slots". Trained and experienced in stats, math, and just plain 'counting', it took only about $200 in chip purchases and some intensive record keeping to convince us to move off our IGT position.
    25 May 2014, 06:40 PM Reply Like
  • samahoe
    , contributor
    Comments (2) | Send Message
     
    Have you explored doubledown on Google Trends?
    26 May 2014, 02:24 PM Reply Like
  • manfredthree
    , contributor
    Comments (3086) | Send Message
     
    To be honest , no, we were too busy trying to analyse the slots programming. Spent our roughly $200 and were a little astonished at what the slot programs did with it and how quickly. . Part of our dd on IGT. Good luck if your playing.
    27 May 2014, 01:38 PM Reply Like
  • samahoe
    , contributor
    Comments (2) | Send Message
     
    Google Trends is showing a positive slope, which means there's more and more intrest in doubledown every month. I use it as one of my gauges to add to my metrics. I like how some of the doubledown slots and its video poker are also available in the brick and mortar casinos. I can use doubledown to see what games I like before playing with real money in the casinos - It's kind of like a show floor to me. Every game has a different math model so I would imagine it would be very hard to analyze doubledown as it has many types of games. Either way, i think IGT is a decent play right now at its current price - revenue from doubledown keeps on increasing every quarter.
    28 May 2014, 12:31 AM Reply Like
  • manfredthree
    , contributor
    Comments (3086) | Send Message
     
    Yes, much more homework is in order before you go to the real casino.
    28 May 2014, 02:18 PM Reply Like
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