SHOCKING Q4 FOR ATLANTIC CITY CASINOS

3 April 2009

NJ casino operating profits down almost 46 percent in Q4

 

The economic recession in the USA continues to play havoc with the 11 casinos and resorts in Atlantic City, according to a report from the New Jersey Casino Control Commission this week.

The resort city's casinos are making less from food, lodging and other amenities as well as a reduction in gambling, the Commission reports.

Gross operating profits at Atlantic City's casinos were $131.9 million for the quarter - down 45.8 percent from the $243.5 million the casinos made in the same period in 2007. Revenue for the quarter was $951.6 million - down nearly 15 percent from the fourth quarter of 2007.

And for the full year 2008, operating profits were $941 million - down nearly 25 percent, whilst revenues dipped by $4.48 billion - down more than 7 percent.

Gross operating profits, which represent earnings before accounting for interest, taxes, depreciation and other charges, is considered a better comparison among casino properties than net income.

Looking at the industry's net income, casinos lost more than $900 million in the 4th quarter and $1.5 billion for the year 2008.

Linda M. Kassekert, chairwoman of the commission, said the industry's problems come from a combination of the recession and ramped-up competition from casinos and slot parlours in neighboring states....and the state's push to attract more customers with nightlife and high-end dining did not deliver the results hoped for.  

Online Casino News Courtesy of Infopowa

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