Atlantic City Casino Revenue Down 6% To $245m In November 2011December 12, 2011 12:55 pm
Atlantic City has just released its casino gaming figures for November, revealing a 6% fall in revenue to $245.1 million compared to $261.7 million for the same month a year ago.
Overall, Atlantic City slots revenue was down 5% to $173.2 million in November, while table games were also down by 10% to $71.9 million.
The beleaguered resort is currently in the midst of a five-year slump which has seen its casino revenue fall by around 30% from its peak of $5.2 billion in 2006, to $3.6 billion in 2010. So far, Ac’s revenue is also currently on track to fall around 7% to $3.3 billion for 2011.
At the heart of Atlantic City’s woes are a number of factors, not least of which is increased competition from surrounding states such as Pennsylvania, New York, Delaware and Maryland, who now have introduced racetracks and casinos to their markets.
Another factor is the sluggish US economy, although other US states have already started bouncing back from the downturn. As a PricewaterhouseCoopers study concluded recently:
“(Of) all the segments of the U.S. casino gaming industry, the Atlantic City market is at the greatest risk from the combined impacts of economic uncertainty and intensifying competitive pressures from regional casinos. These worries are being borne out by our projections, with Atlantic City set to be the only segment of the U.S. market whose revenues will be lower in 2015 than 2010.”
The PCW study predicts that U.S. gaming revenue will increase by 5% from $57.5 billion in 2010 to $73.3 billion in 2015.
Nevada’s gambling market, which hit a high of $13 billion in 2007, is already showing signs of recovery and is predicted to reach $12.95 billion in 2015. In addition, Indian-owned casinos gaming revenue is up by 4% this year to $27.5 billion and is expected to reach $33.4 billion in 2015.
In contrast, Atlantic City casino revenue is expected to keep on falling through to 2015, when it will reach $2.8 billion, about half of its 2006 peak.