The revenue from casinos in Atlantic City, the second largest gambling city in the U.S., dropped 27 percent last year due to the poor economy and competition from nearby states who recently offer various forms of casino gambling.
The total of 11 casino hotels in the state have reported a gross profit of $534.9 million in 2010 compared to $729.7 million in 2009, according to the New Jersey Division of Gaming Enforcement. Operating profit fell 44 percent in the fourth quarter to $62.6 million because of a bad winter in the state. Tropicana Casino and Resort was the only exception for 2010 with higher operating profits for both the quarter and year-round. Tropicana is in the midst of a change of owner, last year billionaire Carl Icahn paid $200 million to a casino gaming company to take over from the former operators who had lost their gambling license. Mark Giannantonio, CEO of Tropicana said their tactics to attract table game high-rollers worked out.
The Borgata Hotel Casino & Spa saw the company profit shrink by 15 percent to $174.7 million in 2010, but it was nevertheless in the best position. Harrah’s Resort was second with a decline of 9 percent to $134.6 million. TThe Atlantic City Hilton Casino Resort, Resorts Casino Hotel, Trump Marina Hotel Casino and Trump Plaza Hotel and Casino all reported an operating loss for the last year. Hilton was the big loser with an operating loss of $18.9 million, followed by a $18.6 million loss by Resorts. Despite the weaker casinos such as the Hilton in red, the casino gambling industry in Atlantic City remains profitable. It will in the future, however, continue to experience deteriorating economic conditions and competition from outside. Resorts and other Atlantic City casinos hope to use their hotel rooms to attract more overnight guests from Pennsylvania and other states as the economy improves. The average occupancy of the casino hotels was 82 percent in 2010, the same as in 2009.