Atlantic City reports double digit growth
The local gaming regulator revealed that the city achieved double digit growth in gross operating profits.
US.- The New Jersey Division of Gaming Enforcement (DGE) revealed on Tuesday that for the third consecutive quarter the seven operating casinos in Atlantic City managed to increase by more than 16.2 percent their profits to US$169.3 million. The second quarter results are approximately US$25 million higher than the results achieved in 2016.
Chairman and Chief Executive Officer of the Casino Control Commission, Matthew B. Levinson, said: “Revenue, occupancy rates and profits all increased and with everything else that’s going on or going up in Atlantic City right now I think the industry’s future looks a little bit brighter every day. They must be doing something right.” Gross operating profits for 2017 are 20 percent higher than 2016 to US$308.6 million approximately, Press of Atlantic City reported. Colin Mansfield, director of U.S. corporates at Fitch Ratings, said that the market is destined to keep moving, as the closure of five casinos in three years has helped the remaining seven to increase their profits. “If you look at the market in terms of profit it looks healthy,” he said. “But if you look at the other numbers it’s still a US$2.4 billion market over a rolling 12 month period.”
Back in July, the DGE said that casino industry in Atlantic City noted a steady period that started last year. Moreover, President and CEO of the American Gaming Association (AGA) Geoff Freeman said that companies are interested in investing million of dollars in Atlantic City, therefore the territory could experience a bright future. “The Atlantic City market is an exciting market right now. There is no doubt the market right-sized itself over the last couple of years. Whilst the closing of the facilities was painful for many, it strengthened the community; it strengthened Atlantic City’s potential for the future,” he said last week.
Mansfield believes that the stabilisation should remain through 2018. “I don’t see it moving one way or the other.” Total casino revenue, including internet, gaming and hotel activity, totaled US$1.7 billion during the first six months of the year, whilst gross gaming totales US$1.7 billion, a 2.5 percent increase when compared to the same period in 2016.
David Rebuck, director of the Division of Gaming Enforcement, added: “The results for 2017, thus far, show the ongoing stability in the casino industry’s revenue and an overall improvement in Gross Operating Profit. These latest financial results, combined with the renewed interest in Atlantic City, continue to provide a basis for optimism regarding the casino hotels and overall tourism in Atlantic City.”
