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Weak 2012 Revenues for Atlantic City

Thursday April 4, 2013 : 2012 REVENUES WEAK FOR ATLANTIC CITY
 
Atlantic City land casinos' profits fell by more than 27 percent last year.
 
The tale of woe that is Atlantic City continued last year, with land casinos suffering a collective fall of 27 percent in profits during 2012, underlining yet again the urgency of finding a solution to the steady decline in the seaside gambling haven's fortunes.
 
Associated Press reported Wednesday that the city's land casinos collectively posted $360 million in gross operating profits in 2012, year in which they suffered from the loss of business caused by Superstorm Sandy.
 
Eight of the 12 casinos posted yearly profits, led by Harrah's Resort Atlantic City, with nearly $127 million, a nearly 13 percent increase from a year earlier. The Borgata Hotel Casino & Spa was next at just under $120 million, but that figure represented a decline of more than 26 percent from 2011.
 
Caesars Atlantic City saw a profit of $82.8 million, down more than 5 percent from 2011; Bally's Atlantic City saw a profit of $61.2 million, up more than 25 percent, and the Showboat Casino Hotel had a profit of $47.1 million, down 2.6 percent.
 
The Trump Taj Mahal Casino Resort saw a profit of just under $44 million, down more than 20 percent from 2011; the Tropicana Casino and Resort saw a profit of just under $18 million, up 2 percent, and Trump Plaza, which was recently sold to a California company, saw a profit of just under $10 million, an increase from their 2011 year-end profit of $2.6 million.
 
The $2 billion investment Revel enterprise, which is now in bankruptcy court, posted a $110 million operating loss from its April 2 opening through the end of the year.
 
Other casinos which posted losses included The Atlantic Club Casino Hotel, which is in the process of being bought by the Rational Group parent of the Pokerstars online gambling company, with a loss of more than $19 million for the year.
 
The Golden Nugget Atlantic City posted an $11 million loss, compared with a much smaller operating loss of $2.2 million in 2011, and Resorts Casino Hotel posted a $7.7 million loss, but that was an improvement of more than 36 percent from the $12.2 million loss it posted in 2011.
 
2012 was the seventh year of a revenue decline that began shortly after the first casino opened in neighbouring Pennsylvania and New York, AP reports.



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