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US – Atlantic City’s casino see profit surge by 31 per cent
By Phil - 25 May 2016
Profit was up spectacularly for Atlantic City’s casino sector who collectively posted an operating profit increase of 31 per cent in the first three months.
The state Division of Gaming Enforcement published figures that show the eight casinos generated a collective first-quarter profit of $106.5m, compared with $81.3m in the first quarter of 2015.
Seven casinos posted a profit with only The Trump Taj Mahal posting an operating loss although this came in at half the operations loss in the first three months of 2015.
Matt Levinson, Chairman of the New Jersey Casino Control Commission, expects the improvement to continue.
“This is another sign of the increasing health of Atlantic City’s casino industry,” he said. “The bottom line increased at seven casinos, with six showing increases in their profits of more than 20 percent for the quarter compared to the same period last year. Along with the increased profits, I hope to see casino operators continue to reinvest in their properties and create new attractions. Revenues are up, third-party sales are up, occupancy is up and the average room rate is up. As we go into the summer season, I anticipate that revenues and profits will continue to go up, and the overall health of the industry will continue to improve.”
Four casinos were forced to close in 2015.
Of those remaining, the Tropicana posted the largest gain with an increase in profit of almost 206 per cent in the first quarter to $7.3m.
The Golden Nugget saw profit up by almost 65 per cent to $6.7m, the Borgata’s profit surged by 24 per cent to $47.6m whilst Bally’s increased 23.5 per cent to $5.6m.
Caesars saw an increase of 2.5 per cent to $15.3m whilst Harrah’s fell by 3.1 per cent but still reported a profit of $26.8m.
Resorts Casino Hotel meanwhile saw a first-quarter loss of $339,000 last year turn into a gross profit of almost $494,000 this year.
The occupancy rate for the first quarter of 2016 was 73.8 per cent, showing an increase of one per cent from the same period a year ago.
