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Atlantic City fifth-straight year of a revenue decline
Written On 4/5/11 By Lenny Wasman :
Profits fall again in 2010
Now in its fifth-straight year of a revenue decline brought on by the explosion of casino gambling in neighbouring states and exacerbated by the poor national economy, Atlantic City's 11 land casinos reported gross operating profit that fell by nearly 28 percent last year.
Year-end tax data released Monday by the state Division of Gaming Enforcement showed the casinos with a total gross operating profit of nearly $535 million. That's down from the nearly $730 million in gross operating profit in 2009, reports Associated Press.
The figure includes earnings before interest, taxes, depreciation and other costs, and is a widely accepted measure of profitability within the gambling industry.
David Hughes, chief financial officer for Trump Entertainment resorts, said 2010 was a tough year because it includes a half-year of financial impact from table games in Pennsylvania, which began in mid-July.
"The problem for the city as a whole has been competition and economics," Hughes said. "For 2011, I think you'll still see a decline in the market but it'll be much less."
The Borgata Hotel Casino & Spa claimed the biggest annual profit at $174.6 million, while the Atlantic City Hilton claimed the greatest financial loss at nearly $19 million.
But in percentage terms, the biggest decline was at Resorts Casino Hotel, which posted an operating loss of $18.5 million, a decline of nearly 41 percent. The casino has since gone on an expense-slashing binge, including making all its workers re-apply for their jobs at lower salaries, and is trying an array of promotions to increase business volume.
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MPN Poker Tour Bratislava | Day 2 -
It was a hard fight around the bubble, culminating in the elimination of Georgios Drakakis in 46th place. He received a surprise consolation entry into the next MPNPT stop in Sunny Beach, Bulgaria (5-8 July), which softened the blow of missing out on a €900 min-cash.
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