2016 was a better year for Atlantic City
News on 8 Apr 2017
News on 8 Apr 2017
Full-year results from Atlantic City casinos in 2016 were up 7.3 percent year-on-year in terms of the key operating profit metric, according to numbers released Friday by the New Jersey Division of Gaming Enforcement.
The remaining casinos achieved gross operating profit of more than $587 million. When the Trump Taj Mahal casino, which closed in October, is removed from the calculation, the figure rises to a 9 percent profit increase.
The fourth quarter of 2016 was unexpectedly much better than forecast as the figures were boosted by continuing increases in internet gambling winnings by the casinos. For the final three months of 2016, the casinos saw a $116 million operating profit, an increase of 20.3 percent from the same period a year earlier.
“I am encouraged by these results and the stability that exists in the industry after many years of revenue declines,” said David Rebuck, the state’s gaming enforcement director.
“When this recent operational momentum is combined with the growth in casino revenues thus far in 2017, especially from internet operations, I am optimistic that the casino hotels can continue to improve operating results during 2017.”
Matt Levinson, chairman of the New Jersey Casino Control Commission, said the casinos generated $3.7 billion in overall economic activity last year.
The figures provide new evidence that Atlantic City’s casino industry is stabilising after a brutal three-year period in which five of its 12 casinos shut down, the Associated Press news agency observed.
With less competition, and the added revenue from online operations, the surviving seven casinos are regaining their footing.
The Borgata posted the largest operating profit at nearly $245 million in 2016, an increase of 13.3 percent from 2015. And casino president Tom Ballance said the Borgata is off to a promising start so far in 2017, with March being the casino’s best-ever month with $40 million in gross slot machine winnings.
Harrah’s was second with $119 million, although that was down 3 percent from a year earlier, and Caesars saw an $80 million profit, down 3.7 percent.
Tropicana’s profit was $53.7 million, up 15.7 percent, and Bally’s was down 2.5 percent at $38.9 million profit, whilst Golden Nugget outperformed, with profit rising 28.1 percent to $28.9 million.
Resorts had an $18.7 million profit, up 20.1 percent.
Among internet-only entities, Caesars Interactive-NJ posted a $9.7 million operating profit, up 143 percent from a year earlier, and Resorts Digital narrowed its operating loss from $6.5 million in 2015 to $1.3 million last year.
