January Continues Revenue Slide For Atlantic City Casinos
Atlantic City casinos have seen the writing on the wall for some time now, and last month it was written in flourescent ink. Between the slowing economy and the proliferation of slot parlors and other gambling outfits in Pennnsylvania, New York, and other nearby states, revenue is shrinking for Atlantic City. The message can only be: evolve, or perish.
Last year was the first year ever that the town as a whole reported less earnings than the previous year. January not only continued but exacerbated the trend, as all eleven casinos in Atlantic City saw a drop in revenue for a city-wide decline of 10%.
The Trump Marina and the Tropicana were the two hardest hit, declining 21.1%. The Tropicana numbers could be anticipated, due to the labor and service problems that led to the casino's ownership losing its license, but the Trump numbers were a surprise.
Slot revenue continues to be the area most affected, dropping almost 14%, while table games revenue decreased only 1.5%. As neighboring states have relaxed their gambling laws, the bus riders and daytrippers that once filled Atlantic City have found venues closer to home, whether it be Indian casinos or slots at racinos.
Casino ownership has seen this problem coming, and is prepared to change the face and style of Atlantic City to deal with it. Now that daily traffic has slowed, the town' s hotels will set their sights on becoming destination resorts, drawing tourists on long vacations and high rollers from around the world. Already, the numbers figuring in declining revenue are skewed by loss of available rooms at Bally's and Caesar's to renovation; and expansion and multi-billion dollar construction projects project to create a Las Vegas atmosphere.
Atlantic City may have reached a turn in the road, but certainly not the end of it. While the Boardwalk area may grow unrecognizable in just a few years, future investment seems sure to cause revenues to climb again soon.
