The nine-casino market in Atlantic City reportedly had a mixed second quarter after its aggregated gross operating profit fell by 6.8% year-on-year to stand at $159.3 million despite an 18.2% rise in combined net gaming revenues to $806.8 million.
According to a Thursday report from The Press of Atlantic City citing official information from the New Jersey Division of Gaming Enforcement, the city’s overall second-quarter gambling profits were around $11.5 million less than for the same three-month period in 2018 when only seven casinos were operational. The newspaper explained that this situation indicates that the local market has not grown despite the debut last June of the Hard Rock Hotel and Casino Atlantic City and the nearby Ocean Resort Casino.
Singular success:
The Press of Atlantic City reported that the 2,767-room Borgata Hotel Casino and Spa was the only AC casino that managed to record a second-quarter operating profit as its figure rose by 4.7% year-on-year to hit $55.41 million despite a 2.8% drop in net gambling revenues to $201.97 million. This was purportedly followed by the Tropicana Casino and Resort Atlantic City, which is now owned by Gaming and Leisure Properties Incorporated, as its three-month earnings declined by 10.5% to approximately $22.61 million thanks to an 8.8% fall in takings to about $87.45 million.
Newbie prospering:
The newspaper reported that the Hard Rock Hotel and Casino Atlantic City recorded a gross operating profit of some $11.28 million for the three months to the end of June while its net revenues reached almost $103.69 million. This New Jersey facility was once known as the Trump Taj Mahal until undergoing a $500 makeover and has now purportedly managed to chalk up a six-month yield of around $5.14 million.
Compatriot dissatisfaction:
However, the 57-story Ocean Resort Casino recorded a deficit of $1.19 million for the second quarter of 2019 while its net revenues came in at just in excess of $71.61 million. This purportedly means that the property formerly christened the Revel Casino Hotel Atlantic City has lost about $11.53 million since the start of the year and its purchase by New York-headquartered hedge fund Luxor Capital Group.
Optimistic outlook:
Far from being disheartened, James Plousis, Chairman for the New Jersey Casino Control Commission, reportedly explained that the casino market in Atlantic City has now experienced five consecutive quarters of comparable net revenue growth while he and put the individual losses down to the market ‘still adjusting to the new level of competition.’
Plousis told The Press of Atlantic City…
“Next quarter will provide an opportunity to compare year-on-year results in Atlantic City’s nine-casino market.”