Atlantic City Casino Slump Continues
Atlantic City casinos are still struggling to find any glimmers of hope as monthly revenues slid once again in February, dipping nearly 6% compared to the same period in 2011.
Atlantic City casinos are still struggling to find any glimmers of hope as monthly revenues slid once again in February, dipping nearly 6% compared to the same period in 2011. It's been a protracted steady decline for Atlantic City's casino operators, with revenue declining for more than five years since a peak in 2006.
Atlantic City has struggled more than other gambling destinations such as Las Vegas (which has seen visitor traffic and spending gradually mending since the latest recession in the US) as many of its casino properties are older and dated, with fewer entertainment and shopping options such as are found in Vegas. Overall gambling revenue in February in Atlantic City was down 5.9%, with slot machine revenue down 4.2% and table game revenue off 10.3%.
For the first two months of the year, revenues were down 6.6% from the same period in 2011. Eight of the 11 casinos saw their revenue decline, led by The Atlantic Club which saw revenue plummet by 29% to $8.3 million. The Tropicana Casino and Resort didn't fare too much better with revenue sliding 27%, to $14.5 million, while Trump Plaza Hotel and Casino was down 22% to $9 million. As far as the gainers, the three in the positive column were led by The Golden Nugget Atlantic City, where revenues were up 18%. The Borgata Hotel Casino & Spa booked a 7% gain while Harrah's Resort Atlantic City was up 4% percent.
Much of Atlantic City's woes are directly related to the fastest growing casino market in the US in Pennsylvania, where newer casinos and an expansion of the games offered continues to siphon away more and more visitors that previously headed to Atlantic City. Pennsylvania's gambling revenues grew 22% in 2011 to $3 billion, with the state very likely to pass Atlantic City in 2012 to become the US' second largest gambling market behind Las Vegas.
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