Painful Losing Steak Continues For Atlantic City
02 Abril 2009 - 7:19PM
Dow Jones News
Atlantic City's casinos continued a brutal losing streak as they
suffered a 24.6% drop in gross operating profits in 2008 and a
roughly 46% slide in the fourth quarter, according to a report
Thursday by the New Jersey Casino Control Commission.
The brutal numbers extend a downward trend for the gambling
haven's 11 casinos, who have struggled to remain competitive amid a
recession and mass defection of gamblers to newer slot parlors in
Pennsylvania and New York.
Gross operating profits totaled $940.9 million in 2008 compared,
to $1.25 billion in 2007, the regulator said. Meanwhile, in the
fourth quarter, casinos reported gross operating profits of $131.9
million, compared to $243.5 million in the same period a year
prior.
"Last year was a particularly challenging one for Atlantic
City's casino industry," said Linda M. Kassekert, the commission's
chair, in the report.
"The decline in revenues and gross operating profits reflect the
decline in overall economy as well as the continued increase in
competition from gaming operations in neighboring states," she
said.
Borgata Hotel and Casino, jointly owned by Boyd Gaming Corp.
(BYD) and MGM Mirage (MGM), outperformed in a down market, as its
gross operating profits fell nearly 18% to $201.1 million in
2008.
Meanwhile, at the bottom was the Atlantic City Hilton, which saw
profits tank 89% last year to $3.5 million.
-By A.D. Pruitt, Dow Jones Newswires, 201-938-2269,
angela.pruitt@dowjones.com