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Atlantic City Casino Profits Rose by Almost 20%
- August 23, 2017 By Oliver Young -
Atlantic City is one of the most popular casino destinations in the US, especially in Eastern US. The casinos situated in the Atlantic City area attract a lot of NJ locals, but also people from neighbouring states, especially New York, as well as tourists from all over the US, as well as international tourists.
There was a proposal to establish land-based casinos on other locations in New Jersey, outside Atlantic City, but the citizens rejected the idea in 2015. Casinos contribute heavily to the state’s economy, especially to the economy of Atlantic City, through tax revenues, but they also create a lot of jobs and influence the revenues of neighbouring businesses.
Revenues Remain Stable
New Jersey casinos record increased profits in the last few years, especially after the closure of few casinos in the area which resulted in increased profits in the remaining casinos. In the first months after the closure there were worries regarding the survival of the industry as a whole, but it turned out that the remaining casinos will do just fine.
The latest figures show that the profit figures of the seven existing Atlantic City casinos keep on growing. The profit of all seven casinos calculated collectively grew by almost 20%. That’s very interesting considering that the revenues have remained pretty stable. The profit figures have been released by the Division of Gaming Enforcement of NJ. According to the figures the total casino revenue in New Jersey for the first six months of 2017 was almost $1.7 billion, which is a 0.6% growth compared to the first half of 2016.
The recorded profits for the first half of this year were $308.6 million which is a 19.1% growth compared to the first half of 2016. If we compare the first half of 2016 to the first half of 2015 we will notice the profit also grew by about 20%, or to be more precise by slightly less than 21%.
Gaming Revenues Growth
Last year we saw the closure of Trump Taj Mahal. The casino, formerly owned by the current US President, was closed in 2016 and was later acquired by Hard Rock International. The company plans to reopen it in the summer of 2018. The re-launched casino will feature a music theme.
It is interesting to note that the only revenue that grew in 2017 was gaming revenue, by 2.4% and it reached $1.24 billion. Other revenues suffered decreases. Room revenue fell by 5%, despite the facts that the hotel rooms were more occupied this year. Food and drinks revenue also dropped by more than 4.5%, whereas entertainment revenue remained almost the same.
MGM Resorts owned Borgata casino was the most successful casino in the first half of 2017, its profit rose by over 21% to almost $130 million. Percentage-wise, Tropicana recorded a profit growth of staggering 106%. The profit of this casino was over $35 million.
The Chairman of the Casino Control Commission was pretty happy with the figures, adding that Atlantic City casinos are doing a good job which results in profits. The two online operators achieved mixed results, Resorts Digital recorded heavy profits, whereas the profit of CIENJ dropped by 16%.