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