Shocking Q4 for Atlantic City casinos

The economic recession in the USA continues to play havoc with the 11 casinos and resorts in Atlantic City, according to a report from the New Jersey Casino Control Commission this week.
The resort city’s casinos are making less from food, lodging and other amenities as well as a reduction in gambling, the Commission reports.
Gross operating profits at Atlantic City’s casinos were $131.9 million for the quarter – down 45.8 percent from the $243.5 million the casinos made in the same period in 2007. Revenue for the quarter was $951.6 million – down nearly 15 percent from the fourth quarter of 2007.
And for the full year 2008, operating profits were $941 million – down nearly 25 percent, whilst revenues dipped by $4.48 billion – down more than 7 percent.
Gross operating profits, which represent earnings before accounting for interest, taxes, depreciation and other charges, is considered a better comparison among casino properties than net income.
Looking at the industry’s net income, casinos lost more than $900 million in the 4th quarter and $1.5 billion for the year 2008.
Linda M. Kassekert, chairwoman of the commission, said the industry’s problems come from a combination of the recession and ramped-up competition from casinos and slot parlours in neighboring states….and the state’s push to attract more customers with nightlife and high-end dining did not deliver the results hoped for.

Related and similar