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ATLANTIC CITY PROFITS PLUNGE IN FIRST QUARTER 2013
Thursday May 23,2013 : ATLANTIC CITY PROFITS PLUNGE IN FIRST QUARTER 2013
Gross operating profits dive 63 percent in the first three months of 2012
The New Jersey Division of Gaming Enforcement released figures this week that highlight the dramatic decline in the fortunes of Atlantic City land casinos, with gross operating profits plunging 63 percent in the first three months of 2013.
The 12 land USA casinos posted a collective gross operating profit of $41.4 million...down from $114.4 million in the same period last year. Total revenue for the quarter was off around 10.5 percent to $919.6 million.
Excluding Revel, which opened in April 2012, seven of Atlantic City's casinos saw their profits decline in the first quarter.
Industry executives remained optimistic despite the depressing numbers, with Gary Loveman, CEO of Caesars Entertainment, commenting that the city's outlook for the future is improving.
"The news is quite good," he said, "We've been through a difficult time. We are now in a period where we can feel more optimistic."
Much of that hope for the future rests on the success of online gambling in the Garden State now that the necessary laws are in place and progress is being made toward implementation before the end of the year.
Nevertheless, the independent Office of Legislative Services in the state put something of a damper on optimistic viewpoints when it questioned Gov. Chris Christie’s projections for the sector’s tax revenue potential.
Christie’s advisers have estimated that up to $180 million in tax revenues could flow from internet gambling legalisation in 2014, but OLS chief David Rosen says this is not realistic, and that tax revenues next year are unlikely to exceed $30 million.
That prompted a tart response from Christie, who told the Bloomberg news agency that Rosen may have "lost it" or was perhaps "playing at politics."
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