Casino revenue rose in Atlantic City
According to the DGE, total revenue for 2016 in Atlantic City casinos reached US$3.51 billion, 0.4 percent higher than the previous period.
US.- The New Jersey Division of Gaming Enforcement (DGE) reported last friday that casinos in Atlantic City have seen revenue gains (0.4 percent year-to-year) that provide them with a decent profit margin for the year. Despite four casinos shutting down in 2014, the seven venues currently operating that integrate the gambling industry in the city are -apparently- bouncing back from darker years.
The DGE paper shows a total revenue for the Atlantic City industry of US$3.51 billion in 2016, 0.4 percent better than 2015. Gross operating profit was also higher with US$587.4 million reported that represents an increase of 7.3 percent year-to-year. Considering that the Trump Taj Mahal only contributed partially to the total figures since it operated until October 2016, these numbers are quite an accomplishment.
The main reason for the revenue numbers were the US$2.52 billion that came in from casino sales in addition to those coming from entertainment that were also higher as they reached US$154.5 million. There were also declines like the one from room revenue (-0,2 percent, US$405 million) and the food and beverage sales (-2.2 percent, US$431 million).
The Golden Nugget saw the most improvement among the four casinos that saw profits in 2016 overall with a growth of 28 percent to total US$29 million in earnings. The Borgata Casino was the one with the largest total amount of earnings as they reached US$244.7 million after rising 13 percent.
But not everyone saw possitive results. Caesars Entertainment, for instance, earned US$119.1 million, which meant a decrease of 3 percent. Bally was also down in earnings (-2.5 percent) as it only made US$39 million in 2016.
Concerning online gambling, the DGE reports an increase of 143 percent just in Caesars Interactive Entertainment New Jersey as the profit for the group reached a total US$9.77 million. For Resorts Digital, figures were not so friendly as they earned US$20.4 million for the year with a net loss of US$1.37 million.
After years of downturn for the gambling industry in Atlantic City, 2016 figures make operators more optimistic about the future. Besides, there are several efforts to improve it, such as the acquisition of the Trump Taj Mahal by Hard Rock International. There will be an investment of US$375 million into the soon to be Hard Rock Hotel & Casino Atlantic City, which is set to contribute to the possitive rates that the industry has shown last year.
