Atlantic City casinos post drop in revenue
The 11 Atlantic City casinos posted a 4.4 percent decline in total revenue so far this year compared with the same period last year, continuing their slide primarily because of Pennsylvania slots.
The 11 Atlantic City casinos posted a 4.4 percent decline in total revenue so far this year compared with the same period last year, continuing their slide primarily because of Pennsylvania slots.
Yesterday's numbers from the New Jersey Casino Control Commission were the first to show a year-over-year comparison to the period after the debut of the two slots parlors in the Philadelphia suburbs.
The official figures for February showed a 1.5 percent increase in revenue, the first monthly increase after 10 consecutive months. But that rise was largely attributed to leap year - this February lasted one day longer than last February, and that extra day was a Friday, traditionally one of the heaviest gambling days of the week.
Harrah's Entertainment Inc. chief executive officer Gary Loveman said his company had been anticipating that the latest numbers would be much more favorable than they had been in the previous 12 months.
Until now, the monthly figures have been compared with a "period when we did not have the competition in Philadelphia," Loveman said at a groundbreaking last week.
Harrah's Entertainment is co-owner of Chester Casino & Racetrack in Delaware County, which debuted in January 2007.
The Chester complex, along with PhiladelphiaPark Casino in Bensalem, which opened in late November 2006, are the closest to Atlantic City among seven that have opened in Pennsylvania. They are considered to have had the most impact on the seaside resort.
Gaming revenue has an impact beyond the casino owners and their customers. Pennsylvania taxpayers enjoy the benefit of a 55 percent tax on gambling revenue. New Jersey has a 9.25 percent tax on gross gambling revenue.
One continuing bright spot for Atlantic City's gambling halls was the surge in table game win - up 4.9 percent last month over the shorter February a year ago, and up 1.6 percent from Jan. 1 to yesterday.
But slots revenue continued its downward spiral - essentially flat last month at 0.1 percent even from the previous shorter February, and down 7 percent year-to-date.
Overall between last month and the shorter previous February, the casinos reported $384.1 million in "win" - or the amount gamblers lost - compared with $378.3 million a year earlier.
By comparison, the seven slots parlors in Pennsylvania took in $120.3 million this past February, according to the Pennsylvania Gaming Control Board.
In total revenues in February, the Borgata led the pack with $60.9 million in revenue, followed by Bally's at $48.2 million, and Caesars at $46.1 million.
The gambling industry, like most industries, is feeling the pinch of a weakened economy, a tight credit market, and rising oil prices. Virtually every American gaming stock is deflated.
Regina Epps, 59, said she used to frequent Atlantic City once a week. But because of high gas prices, it was now more like once a month, since it's only a 10-minute drive to PhillyPark from her Bensalem home.
"It cost something like $30 or more to fill up my tank," said Epps, as she played a $1 slot machine at PhillyPark.
Trump Marina in Atlantic City has lost Bob DeMarco's business for good because of gas prices and the partial ban on smoking in the seaside resort's casinos. He's at the Bensalem casino six to 10 times a month now.
"It's convenient," said DeMarco, 53, a retiree from Yardley, Bucks County, as he puffed on a cigarette behind a slot machine. "I can smoke and stay a couple of hours and go home to my own bed."
