A.C. gambling revenue down, again
Revenue figures announced today for Atlantic City's beleaguered casinos tell a now-familiar story.
Revenue figures announced today for Atlantic City's beleaguered casinos tell a now-familiar story.
While Pennsylvania's seven slots parlors continued to reap big profits, Atlantic City's casinos reported another month of revenue decline largely because of the neighboring competition.
Atlantic City's gambling halls reported $395 million in "win," or the amount gamblers lost, last month. The monthly revenue, announced today by the New Jersey Casino Control Commission, represents a 9.9 percent decrease over the same period a year ago.
Each of the city's 11 casinos reported a revenue decrease, ranging from 0.7 percent at Harrah's Resort to 20.1 percent at the Tropicana.
By comparison, revenue was up at all four Pennsylvania slots parlors that have been opened as least a year. Pennsylvania casinos took in $141.7 million in combined revenue last month. Harrah's Chester Casino and Racetrack in Delaware County led with $31.6 million, edging out PhiladelphiaPark Casino in Bensalem at $30.8 million.
Gaming revenue has an impact beyond the casino owners and their customers. Pennsylvania enjoys the benefit of a 55 percent tax on gambling revenue. New Jersey has a 9.25 percent tax on gross gambling revenue.
"While we have seen some leveling out of revenues after the initial openings, all facilities continue to operate above expectations resulting in an astounding $2.7 million of daily tax revenues to the Commonwealth," said Doug Harbach, spokesman for the Pennsylvania Gaming Control Board.
Of Atlantic City's total monthly revenue, 70 percent, or $277.3 million, came from slot machines, and the rest from table games.
For the three months ended March 31, Atlantic City's casinos took in $1.1 billion in revenue, down 6.4 percent from the same period in 2007.
Today's revenue decline announcement comes in the wake of Atlantic City Council's unanimous vote last night for a full smoking ban in the resort's casinos. The casinos have had a partial smoking ban for the past year. Wall Street analysts have said a full smoking ban would likely lead to a further erosion of business since many patrons of the resort's casinos are smokers.
Just as worrisome for Atlantic City was the fact that revenue at dealer-staffed table games - something the Pennsylvania slots parlors don't offer - decreased 6.6 percent last month, after edging upwards for several months.
Mike Jones of Somers Point, a resular at the resort's casinos, had his own take on what Atlantic City still lacked.
"They need to spice up the city a little more and have more attractions and features down here for families," said Jones, while he played craps at the Tropicana earlier this week. "They [casino operators] are already in the process of doing this reconstruction and building more casinos.
"But they have to have more things for people to be involved in, other than just slots so they don't feel like they're wasting the gas," he said.
