Atlantic City Casino Revenue Down 8% To $3.05bn In 2012

The New Jersey Division of Gaming Enforcement has released its casino figures for 2012 revealing a disappointing 8% decline in revenues to $3.05 billion compared to $3.318 billion for 2011. The latest results represent six years of straight decline for the beleaguered east coast gambling resort, which reached its peak in 2006, when its casinos generated in $5.2 billion in revenue.
Last year finished as lackluster as it had begun with Atlantic City’s 12 casinos raking in $223.5 million or 8.9% less revenue in December than the previous month. Although this decline was less than the 29.7% fall recorded in November mainly due to Superstorm Sandy, the overall yearly totals was not significantly impacted by the  casinos closures for a week. As  David Schwartz from the Center for Gaming Research in Nevada, explains:
“The city is still facing a lot of obstacles. Sandy had a negative impact, but it really only exacerbated the ongoing decline. It didn’t cause it.”
More importantly, Atlantic City’s casino industry has been facing heavy competition since Pennsylvania opened its very first casino back in 2006. The neighbouring state now boasts 11 modern casinos and even managed to overtake Atlantic City in 2012 as the number 2 gambling market in the USA. As gaming industry analyst Bill Ordine explains:
“If someone can play the same game that they play in Atlantic City without the drive and without the tolls, why wouldn’t they just stick around? These people want to play. Now, with an infrastructure right here around them, they can.”
During 2012, Atlantic City had hopes for reclaiming their former title after opening up its new $2.4 billion casino called Revel. However, since April Revel has been losing millions of dollars each month and has been one of the poorest performing casinos. Atlantic City will now be hoping for some good fortune of its own in 2013.