Following a string of very disappointing results in the market, the iconic casino city saw an increase in the first quarter of operations.
Several years ago Atlantic City was the main gambling hub on the East Coast of the US. However, now the once prosperous gaming destination finds itself in a completely different position to where it was before the casino crisis struck them. Countless casinos were forced to close down due to the financial restrained that hit them without a warning.
• Casinos and hotel booking are on the rise
• Atlantic City looks to bolster services in the coming weeks
• Great results compared to same time last year
In order to try and salvage gaming revenues, the state of New Jersey introduced both online mobile casinos gambling sites, however results were lower than initially predicted. But fortunately some positive gambling news emerged as the remaining casinos in the city reported increased earnings in the first quarter of operations.
Foreclosures benefited the reaming casinos
According to many online internet casinos, the gaming industry’s gross operating profits stand at a cool USD 81.3 million for the first quarter of business activity this year. This represents a massive 109% jump compared to last year when the industry reported only USD 38.8 million. These results were provided by the New Jersey Division of Gaming Enforcement as they aim to showcase that the gaming economy has improved over the course of one year.
However, many industry experts assert that the main reason for the improved results can be attributed down to the closures of other competing casinos. Some of the big names that were forced to close their doors are: Showboat, Revel, Atlantic Club and the iconic Trump Plaza in 2014. This led many gamblers and playing enthusiasts alike to seek their favourite gaming pursuits at other facilities that are able to provide them with the services they are normally afforded.
Before Revel shut down for good, as per US gambling laws, it was one of the biggest underperforming firms in Atlantic City. The popular destination contributed greatly to the overall losses of the industry, which is also the reason why now, since its closure, the gaming industry is experiencing a moderate resurgence. The strongest business segments are performing quite well and they are the real drivers behind the growth in recent times. Revenues generated by the casinos, entertainment activities, hotel bookings and food sales are all credited as the pillars of success for the rise in earnings.
More services will be added in the coming months
In regards to the unexpected performance figures, the chairman of the New Jersey Casino Control Commission, Matthew Levinson, indicated a positive outlook for the near future. He believes that the addition of new non-gambling services will have the capacity to attract gamblers to the once lucrative gambling hub of the East. These new attractions are intended to add value to the overall services provided by the casinos and entertainment industries.
Levinson stated, “The key indicators show that the current operators continue to improve.” He listed all the most important areas that have shown significant financial gains in the first quearter. “Gaming revenue is up, total revenue is up, net revenue is up, gross operating profits are up, hotel occupancy rate is up and the average room rate is up.”
It has been reported that hotels have experienced an increase of almost 3 percentage points in the first quarter of this year, and it now stands at 72.8%. The prices should also be taken into consideration as in the first three months the last year the average room costs were standing at USD 96.25, while 12 months later they amounted to USD 98.87 per room on average.
<br normally,="" it="" is="" a="" well-known="" trend="" that="" casinos="" lose="" money="" in="" the="" winter="" months,="" gambling news reports. The traffic is generally slow as there is no activity on the casino floor, which the effect suffered by Trump Taj Mahal Casino Resort and Resorts Casino Hotel. However, many other gambling facilities were more than thrilled to actually see an increase in gambling performance over the first quarter of this year. A total of 6 different casinos managed to actually record a gross operating profit for the time period of January-March.
Looking back to the initial three months of 2014, there were an overall of 12 casinos still in business, however their operating profits were reported to be less than half of the operating earnings generated by the 8 casinos of this year. The main culprits of the downturn in Atlantic City’s gambling fortunes in Q1 2014 were among the following: Trump Taj Mahal, Trump Plaza, Golden Nugget Atlantic City, Revel, Atlantic Club, Bally’s and Resorts.
Although the performance figures for the first quarter in 2015 are great, the question remains whether this trend can continue and whether people will continue to come back to Atlantic City in the following months.