Online gambling helps Atlantic City show a small improvement
News on 13 Sep 2014
News on 13 Sep 2014
August figures released by the New Jersey Division of Gaming Enforcement show that August was in general another downer for Atlantic City land casinos, with revenues dropping a further 1.2 percent y-o-y and another closure.
The 11 casinos still operating during August (there have been more closures since then) won $294.4 million from gamblers, down from $298 million a year ago.
With eight months of 2014 now gone, Atlantic City land casino total year-to-date revenue is now $1.85 billion – a decline of 6.3 percent on the same period last year; if the $83.7 million delivered by online gambling so far this year is added, the decline persists at 2.1 percent.
Adding online revenues of $10.5 million, the amount won rises to $305 million, delivering a more acceptable 2.3 percent increase overall when compared to the same period in 2013.
Internet gaming revenues grew $500,000 compared with the July 2014 numbers,
Among the land casinos, the performance leaders over the month were Borgata, which rose 5.2 percent to $65.8 million; the Tropicana, which was up more than 46 percent to $31.3 million, and the Golden Nugget – up 34 percent to $16.7 million.
To date this year three of the 12 Atlantic City land operators that started the year have now gone. Showboat and Atlantic Club shut down in January, followed by Revel early in September.
Looking ahead, Trump Plaza closes next week, and there is talk of Trump Taj Mahal closing its doors in November this year.
On the New Jersey internet gambling sites, the revenue split was $2.2 million for online poker and $8.3 million from online casino action.
Borgata again led the online sites, mostly with its casino operations whilst Caesars continued to pursue with revenues that were largely flat during the month.
Other operators saw marginal changes, other than Tropicana, which turned in a better performance at $2.26 (July 2014: $1.96 million), and Golden Nugget, where online revenues dipped steeply to $787,000.
Analysts note optimistically that as the northern hemisphere approaches the winter season, online gambling action usually picks up. In addition, technical improvements in geo-location and payment processing, along with increased awareness through advertising and promotions are likely to have a positive impact.
Waiting in the wings is Pokerstars, which can bring to bear its brand awareness and historical pulling power through appealing tournaments, marketing and promotions; anticipation is growing that the New Jersey regulator is about to allow the Isle of Man giant in (see previous reports), and that will certainly have an impact.
