Atlantic City is hoping to see better revenues soon. The change to the Federal Law regarding sports betting may be just the thing. Atlantic City has suffered low revenue for a few years, with some casinos going bankrupt, others missing their taxes due to changes in policy, and more area competition.
There is such a thing as oversaturating a market and with nearby states allowing casinos, it has made things a little tough. Atlantic City is again reporting lower earnings than they hoped for the month of May. When one looks at the year-on-year revenue decline for May one cannot blame the weather. In previous months, casinos stated that the cold weather might be the reason no one wants to come out and play at the land-based casinos. But, May was a warm month, so it doesn’t seem to matter what the weather is doing.
The income decline was 5.1 percent less than 2017. The number is the total percentage down for the total gambling revenue, which was $217.7 million in May. When you look at the record of $24.4 million for online gambling operations things look even worse. The land-based gaming revenue shows a lower percentage of 7.2 percent, with some earnings of $194.4 million.
The decline is based on casino table games. The revenue in just one quarter was lower by $48.2 million. The Casino Control Commission Chairman, James Plousis, said that May 2017 was higher than using for table wins at the casinos. When one considers, the slots revenue that was up less than 1 percent to $145.2 million.
There were only three casinos that managed to eek out a profit in May.
Three Profitable Casinos
The Tropicana was able to post a gain for May 2018. They saw an increase of 7.3 percent, which is an earning of $30.9 million. The Golden Nugget was able to gain 5.7 percent or $19.7 million. Resorts had a 1.2 percent rise in their income to $15.5 million.
Borgata was not a gainer for revenue. They were down 10 percent; however, the casino is still in the market-leading position. Caesars three hotels were also showing in the red, with Harrah’s losing 7.1 percent of their profits and Caesars dropping to 22.3 million USD. Bally’s also dropped in profits about 11.5 percent.
Things are not looking good for Atlantic City right now, but there is hope with the sports betting law change that may help bring money back to the casinos.