START SPREADING THE NEWS: ATLANTIC CITY CASINOS REPORT 3RD QUARTER GROWTH

The New Jersey Division of Gaming Enforcement (NJDGE) published third-quarter revenue statistics for 2 Atlantic City casinos. The total revenue for its NJ casinos arrived in just shy of $929 million for July. The amount is excellent for a 2.7% growth in comparison with the exact same period in 2018. Gross operating profits were on the upswing, raising 12.5percent to $239.4 million when compared to the third quarter of 2018. The AC casino quarterly report marks the first time earnings and profits may be compared to the prior year with the same nine casinos in operation now. The quarterly report contains a mixed-bag of metrics that can offer a birds-eye view of the industry and the area are currently doing. It includes: Borgata Casino continues its rarity, nearly doubling the net revenue of its nearest competition with $235.5 million. Nevertheless, it is a slight reduction (0.3percent ) from last year. It is the competitor, thats a surprise. Hard Rock Atlantic City came in second at $128.4 million, an impressive 27.7% over its first months of operation in 2018. The sole additional casino to report double-blind internet revenue growth in the next quarter is another newcomer to the Boardwalk, Ocean Casino (27.4percent ), using $79.9 million. In the rear of the bunch is Resorts, posting $49.6 million in earnings. On the other hand, together with Hard Rock and Ocean casinos, Resorts will be the only other casino coming a positive net revenue number (+1.3percent ). Ballys Atlantic City has been the hardest hit. It posted a net earnings amount ($60.8 million) that puts it second from the bottom, down almost 9.3% from this past year. That is the most significant percentage decrease for this group. Casino Control Commission Chairman James Plousis talked to the Press of Atlantic City about key indicators from the quarter: Specifically, the hotel room occupancy of the industry came in over 90%, up 8% from last year. The big winner was Ocean Casino. It reported a 99.6% rate rate and also commanded the highest average price at $219 per night. At the base of the totem pole is Tropicana, with an 80.9% rate rate, the smallest of these nine casinos. Furthermore, Golden Nugget comes together with the lowest average nightly room rate of $90.25, nearly $71 less than the industry average. A bunch of positive amounts that are year-over-year is a great thing. The fantastic news is at a time when many are questioning the necessity to restrict the number of AC casinos, citing market saturation, and also safeguarding the viability of the existing properties. It is true that one profit announcement doesnt provide enough information to support both sides of this debate. Though it does make it somewhat harder to support the saturation argument when the industry is currently returning numbers that are considerable. The actual secret to Atlantic Citys overall health is nongaming revenue. It arrived at 3.5% over precisely exactly the same period this past year. Theres proof that Atlantic City is currently continuing to change toward a Las Vegas model. Nongaming revenue in AC currently represents over 47 percent of overall revenue. Even the Las Vegas nongaming revenue comes in at 65% of overall revenue. Rummy Pandit, executive manager of the Lloyd D. Levenson Institute of Gambling, Hospitality and Tourism at Stockton University, commented on the record in the Exact Same Press of Atlantic City article. Atlantic City casinos declared positive net earnings growth for the last six quarters. Year to date, but the business is down 4.5% compared to 2018. It isnt a surprise that Atlantic City is a destination. But if AC can continue to boost its nongaming revenue, it may successfully transition into a destination. If this is this is the case, banking on a season to encourage the business for the entire year will be a matter of the past. Perhaps the continuous discussion around market saturation and capping casinos will drop by the wayside. Read more:
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