Atlantic City casino revenue sinks in November

Last month, brick-and-mortar gaming revenues totaled $180 million, an increase of about $2 million over November 2015, about 1 percent, excluding the Taj Mahal.

The Taj, once called the “Eighth Wonder of the World” by former owner Donald J. Trump, closed Oct. 10 after management accused striking Unite Here Local 54 members of preventing a “path to profitability.”

In the months leading up to the closing, properties around the city offered loyal Taj Mahal customers free slot dollars and comps to attract their business.

The closing of the Taj Mahal left more than $180 million a year in gaming revenue, about $12 million a month, up for grabs among remaining casinos, particularly those that have properties on the Boardwalk, according to a report by Moody’s Investors Services.

But some, like Wayne Schaffel, a casino analyst and public relations consultant, didn’t think the closure would have a huge impact on the remaining casino’s revenues.

“What is going to happen is that those people who used to come to the city eight times a year are now going to come six times year and it’s going to continue to decline” Schaffel said. “I’m not surprised that all of the money didn’t come back into the city. That revenue is gone.”

In October, revenues at properties fell by nearly 3 percent — coming in at $186.4 million compared with $191.6 million a year ago, according to the state Division of Gaming Enforcement. Revenues at the seven still-operating properties in October were up about 4 percent to $185.5 million in that same period, not including Internet operations.

Internet gambling revenues continued to show growth, reaching $17.1 million last month. This represents a nearly 29.9 percent increase from a year ago, according to state figures.

“If you take out the Taj Mahal, which closed in October, the operating casinos are up 3 percent for the 11-month period,” said Matthew B. Levinson, chairman and CEO of the state’s Casino Control Commission. “The positive performance has been fueled all through the year by strong increases in internet gaming. Every casino with a permit to offer internet gambling reported increased online revenue.”

In November 2015, the industry, which included 8 properties at the time, took in more than $204 million in gaming revenue. In November 2016, the seven casinos took in $197 million, a decrease of 3.5 percent.

For the first 11 months of the year, Atlantic City gambling revenues, including brick-and-mortar casinos and internet gambling, reached about $2.26 billion, according to state figures.

Moody’s said it does not expect the closing of the Taj Mahal to have a positive long-term impact on the city’s gaming industry.

“But this windfall will likely end up being short-lived at best,” the Moody’s report said. “While the number of casinos is shrinking in Atlantic City, we expect that overall gaming market revenues will eventually shrink as neighboring states continue to pick away at the city’s gaming revenue.”