The nation’s second largest casino city posted March gaming revenue of $238.5 million. That was 10.5% less than the March 2012 number of $266.5 million. Slot win was down 9.6%, while table games were down 12.8%. Free slot play offered as promotions by casinos to draw gamblers was down 20%.
In addition to another steep monthly decline Atlantic City gaming revenue was down 12.1% for the entire first quarter of 2013 against last year’s numbers. That accounts for a drop of $90 million in gaming revenue, even with mega resort Revel not being open in the 1st quarter of 2013. These numbers do not include revenue from non-gaming sources, including hotel, restaurants or retail sales.
The lingering poor economy, increased competition and Hurricane Sandy continue to hurt Atlantic City gaming revenues. Pennsylvania passed New Jersey in 2012 and became the second largest state in terms of casino revenue. The Aqueduct Casino in New York City is the most profitable slot casino in the United States.
Recovery from Hurricane Sandy continues in New Jersey. Many homeowners have been unable to find contractors to make repairs to their property due to the high demand across the region for construction workers. This has caused hardship among locals who do not have as much time or money as they did before the storm ravaged the coast.
Virtually all of the news that came out of Atlantic City was negative. All but one of the 12 Atlantic City casinos posted negative year over year numbers. The exception is the Atlantic Club, which saw March gaming revenue of $12.6 million, an increase of 32.7% over last year. The increase helped the property move from last place to 8th place in terms of gaming revenue. The Atlantic Club property is being sold to the Rational Group pending approval from New Jersey gaming regulators.
The disappointment continued at Revel. The newest Atlantic City property failed to break $10 million in revenue. The $2.4 billion property came in 10th place, just $600,000 higher than Resorts. Revel announced that it would enter into an orderly bankruptcy last month after failing to draw gamblers to its casino. A poor player’s club, lack of player database and no smoking policy have all contributed to Revel’s low casino revenue.
Trump Plaza posted the lowest gaming revenue numbers. The property is in the process of being sold to a California investment group for $20 million.
Atlantic City may also see another owner come to the market. Penn Gaming has been eyeing the Boardwalk for several years and it appears Showboat may be their potential target. Caesars Entertainment is the owner of Showboat and their financial problems are no secret. The company owes over $20 billion to creditors. Penn Gaming’s Senior Vice President of Regional Operations Jay Snowden is the former Senior Vice President and General Manager of Showboat.
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