First Quarter Figures Show Continued Decline At AC Casinos
Gaming analysts may again have to adjust their predictions when it comes to the economic recession and its effect on the US casino industry. Originally, it was thought that the casinos would start experiencing a rebound in 2011.
Atlantic City is the second largest gaming market in the US, and there has been little progress made in terms of crawling out of the hole dug by the 2008 economic recession. The first quarter numbers have been released for 2011, and it was more of the same for AC casinos.
In the quarter, AC casinos had a gross operating profit of $98 million. That is down almost fourteen percent from the same period in 2010, when the figure was $113.7 million. Overall, the numbers were not as bad, with net revenue down only slightly over seven percent, at $786.7 million. Either way, the numbers reflect how the recession and competition has crippled the gaming industry in New Jersey.
Pennsylvania can be blamed for making the biggest impact amongst Northeastern states when it comes to competition. Last year, Pennsylvania casinos added table games, and revenue started to take off. Analysts predict that by the end of next year, Pennsylvania will have passed New Jersey in overall gambling revenue.
"These first quarter figures again show that the AC casino industry is headed in the wrong direction," said Gaming Analyst Brad Dawkins. "Several renovation projects could help turn things around, but it may be several more years before AC casinos get back to anywhere near the revenue numbers they had before the recession."
The majority of the casinos in Atlantic City actually had profits in the first three months of the year. Three casinos that have been struggling played a major role in dragging down the overall revenue figures. One of those casinos, Trump Marina Hotel Casino, is in the process of being sold.
May 21, 2011
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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