SBC News Voice of the Sports Betting Industry
Figures published by the New Jersey Division of Gaming Enforcement have shown that Atlantic City has lost nearly half its casino revenue over the past eight years.
The dramatic decline has seen Atlantic City net revenues drop from $5.2 billion in 2006 to $2.74 billion in 2014, as a poor US economy combined with competition from nearby states has impacted all Atlantic City based gambling operators.
2014 has seen four of the City’s 12 casino close their operations; The Atlantic Club, Showboat Casino, Revel and Trump Plaza The steep decline in fortunes, has impacted the state of New Jersey with over 8000 workers losing their employment. New Jersey Gaming Division further reports that the city casino have lost half their workforce since 2006.
Despite declining headlines throughout 2014, at closer inspection there appears to be signs of recovery and stability for the city. Its remaining casino operators increased revenues by 8% to a combined 2.48 billion.
“If we focus on the casinos that are still in operation, revenue was up 9.4 percent for the month of December alone, and a healthy 7.8 percent for the entire year,” said said Matt Levinson, chairman of the New Jersey Casino Control Commission. “The closure of four casinos last year was a traumatic contraction of the industry, but it clearly has left us with a casino industry that is better positioned for growth in the future.”
Amongst the positive performers was the Golden Nugget casino which saw revenues up 48% to $185 million and The Tropicana saw its annual revenue rise 30% to $297 million. Casino executives and state representatives have focused on these positives after a difficult 2014.
2015 will see whether Atlantic City can take back its position as the US second biggest gambling hub, having been overtaken by Pennsylvania last year. The city will continue to face competition from surrounding states, as more casino look to open in Delaware, Maryland, Pennsylvania and New York.
