Home > Lehigh Valley News > Lehigh Valley News Sands casino climbs to No. 2 in state in revenues
Bethlehem casino has risen to become second-most lucrative casino in the state.
Sands Casino Resort Bethlehem was the most expensive gaming hall in Pennsylvania built, and it's finally starting to act like it.
With help from newly opened table games, thousands of New York City gamblers and new casinos that are cannibalizing each other's business, the casino in south Bethlehem has risen to become the second-most lucrative casino in the state.
According to the most recent revenues released by the Pennsylvania Gaming Control Board for Oct. 5-11, Sands' $5 million in gross terminal revenues – that's all the money left in the slot machines after winners are paid — outpaced every other casino except Parx Casino outside Philadelphia.
That includes two Pittsburgh-area casinos, and a second Philadelphia-area casino.
"It's not a shock," said Grant Govertsen, co-founder of Las Vegas-based Union Gaming Group, analysts for the worldwide gaming industry. "Tables have really turned the tide for Sands. They're well-positioned to take advantage of the New York market, particularly with Asian gamblers, and that tends to translate to more slot machines revenues. Sands knows how to do tables."
Sands Casino President Robert DeSalvio declined comment, saying he cannot discuss casino revenues with parent company Las Vegas Sands' quarterly report due in the next two weeks.
Sands' rise up the 10-casino ladder in Pennsylvania is two-fold. Its 89 blackjack, roulette and craps tables apparently have helped its slots revenues because its numbers this year are up 21 percent over the same week last year.
In addition, other casinos have taken on new competition. So while Sands' revenues climb, some of the casinos that have spent the past year outperforming Sands are seeing revenues fall.
Harrah's Casino in Chester routinely outpaced Sands by as much as $1.5 million per week. But since SugarHouse Casino opened in September in Philadelphia, Harrah's weekly revenues dropped from $5.8 million last year to $4.7 million this year.
The same thing has happened to Pittsburgh-area Meadows Casino, which has seen its October 2009 weekly revenues of $5.3 million drop to $4.66 million this year.
It's welcome news for executives at the most expensive casino in the state. With its $800 million price tag, Sands has not been making enough money to pay its mortgage, Las Vegas Sands President and Chief Operating Officer Michael Leven said in June.
But Leven predicted that its table games and the May 2011 opening of its 300-room hotel will help it better compete in Pennsylvania's crowded market.
However, while its newly elevated position among the state's 10 casinos is encouraging, it won't be easy to capture that top spot. Parx casino recorded $6.8 million in slot revenues last week, which not only dwarfed revenues at every casino in the state, but also matched its performance the same time last year.
"Parx is a monster, and it's going to continue to be a monster," said Larry Klatzkin, a 25-year Wall Street gaming expert who is managing director of Chapdelaine Credit Partners, Manhattan. "But with Sands sitting 70 minutes from my office, and the hotel ready to open, who knows. They have a shot."
matthew.assad@mcall.com
www.mcall.com/news/local/...o-revenues-20101017,0,741730.story
Zurück
