For Atlantic City, the torrent of bad news just keeps coming.
The seaside resort's 11 casinos had their biggest-ever monthly revenue decline last month, down 18.7 percent from December 2007, to $302 million, the Casino Control Commission reported yesterday.
For the year, Atlantic City's gambling revenue came to $4.6 billion, a drop of 7.6 percent from 2007 and the first time it dipped below $5 billion since 2005.
"Last year was a very challenging one for Atlantic City's casinos," said Linda M. Kassekert, the commission's chairwoman. "While the economic problems that face this nation took their toll on casinos in 2008, the industry was also hurt by growing competition in neighboring states and a partial ban on smoking in casinos."
Every Atlantic City casino reported revenue declines last month, with Harrah's Resort reporting the lowest drop at 6.2 percent. The other 10 gambling houses had double-digit declines, ranging from 10.4 percent at the Borgata, to 36.1 percent at Atlantic City Hilton.
And with the exception of Harrah's Resort, each had full-year revenue declines compared with 2007.
While the economy may improve eventually, one thorn that will remain in Atlantic City's side is the expanding gaming market in Pennsylvania, which shows no sign of slowing down.
The seven operating slots parlors in Pennsylvania generated revenue of $121 million last month, up from $99.8 million in December 2007, thanks largely to the opening in February of Penn National Race Course in Grantville.
The Pennsylvania casinos had $1.62 billion in total revenue last year, up from $1.04 billion in 2007. Much of their business is from former Atlantic City slots customers. Pennsylvania does not offer dealer-staffed table games.
A particularly troubling sign for Atlantic City was the breadth of the decline.
In December alone, slot revenue fell 18.5 percent to $204.7 million, while revenue from table games fell 19.1 percent to $97.3 million.
"I don't think anybody had any sense that the year would end so badly," said Dan Nita, regional president of Harrah's Entertainment Inc., which owns four casinos in Atlantic City that account for nearly 40 percent of the resort's revenue.
Even Pennsylvania casino operators were taken aback by the extent of the hit to Atlantic City.
"Honestly, I was really surprised," said Dave Jonas, president of PhiladelphiaPark Casino in Bensalem, the leader among the state's seven casinos. "Our numbers are up significantly in December by double digits."
PhillyPark made $26.7 million in slots revenue last month, up 6.3 percent from December 2007.
The seaside resort's loss is Pennsylvania's gain at the state coffers as well. New Jersey takes 9.25 percent of the gross casino revenue as a tax to finance programs and redevelopment projects. The tax in Pennsylvania is 54 percent, which goes toward property-tax relief, expansion of the Pennsylvania Convention Center, and higher purses for horse races.
Atlantic City is expected to face even more pressure as Pennsylvana adds more slots in the new year.
A casino by Las Vegas Sands Corp. is slated to open this summer with 3,000 machines in Bethlehem, along with a slots parlor on the Pittsburgh waterfront. PhillyPark will move to a bigger facility by late fall, which will house 3,000 to 3,500 slot machines, new restaurants and a bar.