Atlantic City Casino Profits Plunge 45% To $65m In Q2August 23, 2013 10:42 am
The state Division of Gaming Enforcement has released its casino results for the second quarter of 2013, revealing a grim 45% drop in profits to $65 million compared to $118 million for the same period last year. For the first half of the year, Atlantic City casinos are now down by more than 54% to $106 million, compared with $232 million for H1 a year ago.
The latest figures further confirm the depth of problems facing the once bustling seaside town which has seen its gambling revenues plunge by 42% to $3 billion last year from its peak of $5.2 billion in 2006, with 2012’s results being the lowest they have been since 1991.
At the heart of Atlantic City’s woes is the growing competition it has experienced from neighbouring states such as Pennsylvania and Maryland, and unfortunately the situation is likely to only get worse for the South Jersey resort as other states, such as Delaware, New York and Massachusetts prepare to expand their casino and gambling offerings.
For Q2 2013, which includes April, May and June’s results, four of Atlantic City’s 12 casinos actually posted operating losses, lead by Revel Casino Hotel which saw a gross operating loss of $40.8 million; followed by The Golden Nugget Atlantic City with a loss of $6.5 million; the Atlantic Club Casino Hotel with losses of $2.3 million; and Resorts Casino Hotel with a quarterly loss of $1.3 million.
Alternatively, the Tropicana Casino and Resort posted the biggest Q2 gains, with profits up by 28% to $12.6 million; followed by Caesars Atlantic City up 17.4% to $24.2 million.
Not surprisingly, the latest disappointing figures have evoked a strong response from gambling experts, with Gaming Research director David G. Schwartz from the University of Nevada stating; “It’s dismal. They have serious issues,” and gambling analyst Steve Norton labelling it “catastrophic.”