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Casino profits fell by more than 15% in Atlantic City in 2018, a year in which the reduced market reopened its two closed gaming halls, according to figures released Monday.
Gross operating income decreased 15.4% to $ 582 million.
Five of Atlantic City's 12 casinos were closed between 2014 and 2016, and the market appears to have stabilized at a lower level with less competition. But the reopening in June of Revel as Ocean Resort Casino, and Trump Taj Mahal as Hard Rock has put two new competitors in the mix.
Of the seven casinos that operated at the beginning of last year, five of them saw their gross operating profits decline, according to statistics released by the New Jersey Division of Gaming Enforcement.
Only Tropicana and Golden Nugget increased their operating profits last year.
When the plans to reopen the two casinos were announced last year, some circles feared that the newly reduced market, which had regained its place at a lower level, would have trouble absorbing the new competition, which would translate into reduction of the cake. everyone.
James Plousis, chairman of the New Jersey Casino Control Board, acknowledged that "profit margins were tighter".
"But the station has added thousands of jobs and many exciting new facilities, which positions us for continued growth," he added.
Gross operating profit reflects earnings before interest, taxes, depreciation and other charges and is a widely accepted measure of profitability in the Atlantic City casinos sector.
The Gold Nugget recorded the largest increase in operating income for the year, up 12.5% to $ 45 million. Tropicana rose 1.4% to $ 93.4 million.
The Borgata recorded the largest decline in profits, down 18.8% to $ 206 million, about twice as large as its nearest competitor. Caesars was down 15.4% to $ 79.6 million; Harrah's is down 6.5% to $ 109.3 million; Bally was down 5.7 percent to $ 40.1 million and Resorts down 22 percent to $ 22.5 million.
Resorts Digital was down 75% to $ 3.6 million and Caesars Interactive-NJ was down 13.3% to $ 9.3 million.
The two new casinos each recorded a gross operating loss for the year 2018. Ocean Resort lost $ 17.8 million, while Hard Rock lost $ 9.1 million.
"The launch of a new property and the acquisition of new customers are still expensive, but we are very excited about the volumes and dynamics that prevail in 2019," said Hard Rock President Joe Lupo , to the Associated Press.
For the fourth quarter of last year, Atlantic City casinos posted a collective decline in gross operating profit of 41.1% to $ 75.1 million.
The Atlantic City casinos were over 80% full in 2018. The resorts had the highest occupancy rate (86%); the nugget of gold was the lowest at 74 percent.
Borgata had the highest average price at $ 179.64 while Golden Nugget was the most affordable at $ 83.98.
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