Atlantic City gaming profits down in 2nd quarter

Atlantic City gaming profits down in 2nd quarter

In the second quarter of 2011, revenue dropped to $136.3 million from $149 million reported in the same period a year ago. In 2009, the profits were all the way up at $192.5 million, showing how far the industry has decreased in recent years.  Atlantic City casinos reached its highest point in 2006, when state gaming facilities reported $355.9 million in gross operating profits for the second quarter of the year.

For gaming analysts,  casino revenue in the state of New Jersey has been deeply affected by the recent gaming expansion approved in the neighboring state of Pennsylvania. Since the addition of table games at most state casinos, Pennsylvania has become the gaming capital of the Northeast.  With more gamblers choosing Pennsylvania casinos over Atlantic City, expert projections indicate that Pennsylvania’s gaming industry would surpass New Jersey by the end of 2012.

But while gaming revenue at Atlantic City casinos still on the downside, hotels and resorts have experimented a slight increase in the occupancy when compared to the a year ago, jumping from from 85% in the second quarter of 2010 to 87% in the same quarter 2011

The highest occupancy rates were reported at Bally’s Atlantic City and Caesars Atlantic City at almost 96%. ACH Casino Resort, formerly the Atlantic City Hilton, closed the quarter with the lowest rate (67% occupancy) and was the only hotel reporting occupancy rates under 70%.

Borgata remained the most profitable casino in the state with $40 million in revenue, although profits were down 10% compared to a year ago. Harrah’s Casino Hotel closed the second quarter as the second most profitable casino with $30.7 million and Caesars Atlantic City was third, at $24.9 million.

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