CASINO

Atlantic City casinos 2014 revenue falls but surviving casinos post gains

TAGs: Atlantic City, Detroit, Michigan

atlantic-city-casino-hopeAtlantic City‘s casinos reported revenue of $2.74b in 2014, 4.5% less than they earned in 2013 and a whopping 48% decline from the seaside gaming hub’s peak of $5.2b in 2006. The annual decline would have been 8.5% were it not for the additional $122m in revenue AC earned from online gambling, which was only operational in the state for about six weeks at the tail end of 2013.

The struggles Atlantic City faced in 2014 are well documented, with four casinos closing their doors and the Trump Taj Mahal’s survival still far from assured. Yet there is some indication that AC’s eight remaining casinos may have a brighter future, given that six of these joints reported gaming revenue increases in the month of December, and the elite eight saw their share of gaming revenue rise nearly 8% in 2014.

Stripping aside December’s $10.7m in online gambling revenue, the eight surviving casinos earned $179.8m for the month, up 7.3% from the amount those same eight earned in December 2013. Perennial top dog Borgata maintained its number one position, gaining 13.3% to $49.9m. Harrah’s placed second with $29.8m (+11.1%) while Caesars fell 6.1% to $27.6m. The rest shook out as follows: Tropicana ($20.2m, +23.6%), Bally’s ($17.2m, +5.4%), Golden Nugget ($13.7m, +47.4%), Resorts ($10.6m, +20.9%) and the Taj Mahal ($10.8m, -34.9%).

Up in Detroit, the city’s three casinos posted a modest 1.2% annual gaming revenue decline to $1.33b in 2014. The Michigan Gaming Control Board said the decline would have been much worse were it not for December’s tally, which was up 10.8% year-on-year. The Board had been expecting a decline in the range of 2.5% to 3%, so executive director Richard Kaim figures the real numbers are “certainly manageable.” MGM Grand captured 42% of the city’s casino revenue, with MotorCity owning 33% and Greektown 25%.

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