The New Jersey Casino Control Commission released revenue figures for the state for December of 2008 as well as full year to date numbers. The result: casino revenues plummeted by 7.6% in 2008 and 18.7% in December of 2008 in comparison to December of 2007. Still, casino win was $4.5 billion during the 2008 calendar year.
Atlantic City is a Mecca for gambling on the East Coast of the United States. Home to such poker-friendly casinos as the Borgata (a stop on the World Poker Tour) and Harrah’s (which hosts a World Series of Poker Circuit Event), the town attracts high-profile players from around the United States and around the world. Linda Kassekert, Casino Control Commission Chair, commented in a press release, “Last year was a very challenging one for Atlantic City’s casinos. While the economic problems that face this nation took their toll on casinos in 2008, the industry was also hurt by growing competition in neighboring states and a partial ban on smoking in casinos.”
Casino win in December was $301 million, down from $371 million during the same period in 2007, or a drop of 18.7%. In December of 2006, revenues were $415 million, meaning that the Atlantic City market has seen a 27% slide over the last two years month over month. However, the $4.5 billion in statewide revenue in 2008 is the fifth highest total on record, trailing only the totals from 2006, 2005, 2007, and 2004. The richest single month on record occurred in July of 2005, when casino win was $504 million.
Raking in the most money in Atlantic City was the Borgata, which recorded revenues of $55 million in December of 2008 and $738 million over the course of the calendar year. The casino, which opened its doors in 2003, logged 30% higher revenue than its next closest competitor, Harrah’s Marina, which raked in $38 million in December and $544 million year to date. Bally’s Atlantic City brought in $36 million in win in December and $568 million over the course of last year. The only other casino to eclipse the $30 million mark was Trump Taj Mahal, which recorded revenues of $32 million in December and $482 million during 2008.
Borgata’s numbers slid just 10.4% in December of 2008 in comparison to the same period in 2007. Hardest hit was the Atlantic City Hilton, whose revenues slid from $14 million in December of 2007 to $10 million in December of 2008, a fall of 36.1%. Trump Marina revenues fell 27.2% year over year in December and the Trump Plaza saw its win tumble by 26.2%. Caesars revenues slid by 24.8% in December year over year and Resorts’ declined by 25.4% over the same period.
Examining year to date revenues, Harrah’s Marina actually saw its win grow during 2008 by 4.9% to $544 million. A 42% increase in table game revenue helped it become the only Atlantic City casino to improve its revenue from 2007 to 2008. The Atlantic City Hilton’s revenues sank 18.3% in 2008, edging out Resorts’ 16.3% decline for the largest in the gambling metropolis. The Borgata’s revenues fell by 1.6% in 2008; Caesars, Trump Plaza, and Trump Taj Mahal also saw revenues fall by less than 10% in 2008.
Atlantic City casinos paid $360 million in 2008, or 8% of taxable revenue, to the Casino Revenue Fund, which benefits residents with disabilities. Since 1978, the Fund has taken in $7.7 billion.
Trump Entertainment, which is traded in the NYSE under the symbol “TRMP,” was down $0.01 at the time of writing to $0.26. MGM Mirage, traded on the NYSE under the symbol “MGM,” is down $1.22 to $11.57. Both are well off their 52 week highs of $4.80 and $75.08, respectively.
