Monday August 25,2014 : NOT ALL DOOM AND GLOOM IN ATLANTIC CITY
Latest second quarter numbers show improvement.
It's not hard to lose sight of the potential of Atlantic City amid the current doom and gloom reports of failing income and land casino closures, but the New Jersey Division of Gaming Enforcement had some positive news Friday when it announced that second quarter overall gross operating profits by Atlantic City's 11 operating land casinos increased 35 percent.
Top earner was the Borgata Hotel Casino & Spa, which reached an $88 million tax settlement with the city in June. Most other casinos, while turning a profit, saw that profit decline in the second quarter.
The Borgata posted the largest operating profit at $43.2 million, compared with $28.1 million in the second quarter last year, a rise of more than 53 percent. But Joe Lupo, the casino’s senior vice president, said $11.8 million of a tax settlement was applied to second quarter earnings.
The DGE figures show the casinos posted a collective gross operating profit of more than $83 million in April, May and June of this year…an increase of 34.9 percent compared with the same period last year, when New Jersey had not yet legalised Internet gambling.
Gross operating profit reflects earnings before interest, taxes, depreciation and other charges, and is a widely accepted indicator of profitability in the casino industry.