AC Casinos Register a Drop in Revenue Decline in May

Tuesday, June 18th, 2013 | Written by April Bergman
AC Casinos Register a Drop in Revenue Decline in May

The struggling Atlantic City casinos finally have some good news – there has been a slowdown in their revenue decline. After the recession, a devastating storm and brewing competition from casinos in other states, the casinos reported that percentage of revenue decline has gone down for the month of May. For the entire month, the casinos reported a decline of less than 4% in the revenue.

May Was Not All Gloomy

The first four months of the year were not very pleasing, in terms of the revenue that Atlantic City casinos generated.  Compared to the first quarter last year, the revenue from casinos in Atlantic City, during the first quarter of this year went down by 10.4 percent. The city, which was second next only to Vegas, is no longer the second biggest gambling destination, after it lost its place to Pennsylvania.

Considering all this, and the fact that some of the biggest casinos in the city have suffered major losses and are even up for sale, the figures for the month of May bring some hope. The casinos in the city won over 253.2 million dollars in May, which is only 3.8% lower than what they managed to make during the same time last year.

Market Stabilizing, Says Tony Rodio

According to the president of Tropicana Casino and Resort, Tony Rodio, the casinos only have to make up for the losses they suffered during the super storm Sandy. While the casinos were not in literally damaged by the storm, they had to stay closed for over a week, which had cost them dearly. Rodio, who also happens to be the head of the Casino Association of New Jersey, said that the slowdown in revenue decline only indicates that the market may be stabilizing. He added that if the casinos managed to keep the decline percentage low and even get close to not having losses during the summer months, they can take it as a positive sign.

The Best Month So Far

In January 2013, the casinos reported a decline of 13.7%, while in February a decline of 12.5 % was reported. The decline continued in double digits with 10.4% in March and 12.1% in April. Until May, the casinos earned $1.138 billion, a decline of more than 10% from the same period last year.

The month of May this year was not all gloomy, with slot machines alone taking in $180 million, although it was 3.7% lesser than last year. Revenue from table games also went down by around 4%, to a little more than $73 million. Of the 12 casinos in AC, 4 of them including the Atlantic Club Casino Hotel posted an increase in revenues.

The casino reported a hike of 24.5% in revenues, to $13.3 million. Margaritaville also posted revenue of $12.6 million, up by 20%, and Caesars Atlantic City posted an increase of 6.9% to 32.5 million dollars. Borgata Hotel Casino and Spa also reported an increase of 4.8% and the highest net revenue of 52.4 million in May.