Slimmer Atlantic City Market Still Needs Gamblers in Casinos
The closure of four Atlantic City casinos in 2014 has led to better gaming revenues for most of the remaining eight, but it may have also pushed some gamblers out of the state for good.
According to the latest casino revenue numbers for the month of July, the surviving casinos collectively brought in 6 percent less than the city's 11 casinos brought in during July of last year. So some gamblers are obviously flocking to the other still-thriving casinos, but some are apparently no longer coming to the city for games of chance.
Atlantic City's casinos took nearly $260 million from gamblers last month, compared to $274 million a year prior, when Showboat, Revel and Trump Plaza were on the brink of closure. Atlantic Club had already shut down in mid-January.
"They're not pulling in exactly as much, but most of the casinos have shown increases in their bottom line," said Roger Gros, publisher of Global Gaming Business Magazine.
Six of the eight saw at least a $500,000 increase in gaming revenue between July 2014 and July 2015. Trump Taj Mahal experienced an 11.8 percent drop, despite less competition, and Bally's didn't register a significant uptick.
"The market has pretty much been right-sized. I think there might be one more to go," Gros said, pointing to Bally's and the Taj Mahal as a potential next victim.
Performance in October of this year may present a clearer picture of the current casinos' year-over-year progress. Barring any other casinos shutting their doors, it will be the first true month-to-month comparison featuring only eight casinos.