The casinos grossed $408.8 million in total revenues, down approximately 1.9 percent from a year ago at this time, according to figures released yesterday by the New Jersey Casino Control Commission, which monitors the Atlantic City gambling market.
"We're continuing to see the impact on our slots business as a result of the new slots in Pennsylvania and in New York," said Tony Rodio, president of the Atlantic City Hilton and Resorts casinos.
Smoking Ban Hurt Too
"In addition, it's clear since the institution of the partial smoking ban, we are seeing a further erosion of our slots revenue," he said.The ban restricts smoking to 25 percent of the casino floors.
Experts think the novelty of the new slot machines at Pennsylvania racetracks are boosting business across the state line from New Jersey -- for now.
"Between us and Harrah's Chester, we've added over 5,000 slot machines into the market," said David Jonas, president and chief operating officer for Philadelphia Park Casino. "This is going to go on for a while until we absorb all of the extra capacity. Atlantic City will continue to show negative growth."
The trend is likely to continue for some time. The Meadows Racetrack & Casino this week became the state's fifth gambling parlor to open, with 1,738 slot machines. However, overall, Pennsylvania's monthly slots revenue is but a fraction of Atlantic City's $5 billion industry. Pennsylvania reported a total of $77.2 million in slots last month.
About 72 percent Atlantic City's total gambling revenue; $294 million came from slot machines, a 7 percent decrease from a year ago. The rest, $114.8 million, came from table games.
Three of the four casinos that posted higher revenue - the Borgata Hotel Casino & Spa, Harrah's Marina, and Caesars - recently expanded their gambling offerings or added shopping, restaurants or more nightclubs.
The owners of the Borgata casino finished a $200 million expansion last summer that added new slots and table games. Caesars Palace opened the $200 million Pier retail and dining center. Harrah's opened the Waterfront retail mall and The Pool entertainment complex in May as part of a $550 million expansion there, experts said.
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