Revenue Gains At Atlantic City Casinos, But Is It All As It Seems?
So the casinos in Atlantic City have managed to apparently post a very rare gain in their revenue, but we need to look at the stats a bit closer in order to fully understand just what exactly is going on. It is interesting to note that at the same time online gambling in the state of New Jersey actually declined, which is something that was unexpected, while the casino companies based in Atlantic City saw their revenue increase by 3.3%. This is on the one hand good news for some, but what is actually going on that this has allowed this to happen?
To understand it better we need to look at what makes up the figures and you will see that the total revenue from gaming stands at $235.9 million, which includes table revenue of $73 million and slots at $151.4 million, but $11.4 million of this includes online gambling and last year these figures were not actually included. This figure for April also includes money from the Atlantic Club, but that shut its doors at the start of the year. This puts a completely different slant on the figures as it turns it from a 3.3% increase into a 1.8% decrease and this should certainly be worrying.
However, the figures do not lie and what they show is that six of the major casinos in Atlantic City did indeed report an increase in their revenue in April and even though that is just over half of the total number it does at least point to them heading in the right direction. The biggest leap was by Revel as they saw a gain of 55% leading to revenue of $12.5 million. Next, the Golden Nugget saw an increase of 40.1% with revenues to $13 million, Caesars Atlantic City increased by 17% up to $34.1 million, Borgata up 12.8% to $55.1 million, Resorts Atlantic City up 7.7% to $10.7 million and Tropicana up 6.4% to $21.9 million.
These are all healthy numbers, but there are also some major concerns with the other existing casinos. The likes of Trump Taj Mahal has dropped by 18.8% to $17.6 million while Trump Plaza beats that by dropping a staggering 26% to $4.4 million, but it is not only Trump that is suffering since Showboat has seen a drop of 20.1% to $13.2 million. When you also realize that Ballys has declined by 12.2% to $16.6 million as well, then you know that the future is not as rosy as it seems.
This decline in the fortunes of Showboat may have larger ramifications as there are strong rumors that its parent company is giving some serious consideration to getting out of the Atlantic City market due to there being too many casinos in a decreasing market. Indeed, industry experts such as the CEO of Caesars Entertainment, Gary Loveman, has even indicated that the closure of the Atlantic Club may not be the last in this area. Caesars themselves have four casinos in Atlantic City, so the possibility of at least one being closed in order to bolster the other three is something that is certainly under consideration. If this is the case, then expect one of their smaller casinos to close rather than one that really showcases the company.