Low Year Means Regrouping for Casinos

With the influx of slot machines coming into Pennsylvania and other neighboring states, Atlantic City has felt the pinch. They are bringing in less slot machine revenue than ever before, and because of this they are aware that they are going to have to make some changes in how they do business.

Some casinos actually did better, but most saw their slot machine revenues drop once again over this last quarter, and in the city’s 29 year history they have never seen an annual revenue decline like this. They say that with the additional slot machines coming in, and now the partial smoking ban that has gone into effect; the casinos are hurting more than ever.

Last year the casinos saw their total revenue drop 5.7% to bring in $4.92 billion. Over the previous 28 years, the casinos had always shown an increase over the year before so it is understandably daunting now for them to see where they could be headed. With smokers still allowed in the PA casinos, it only gives their old customers more of a reason to stay away instead of making the trip.

That is not to say that some don’t come because it is now smoke free in many areas of the casino, but that number is not enough to combat the business they are losing. With a drop of close to $1 million over the previous year, and no idea of where they might end up this year, it could turn out to be a very scary year for the casinos overall.

There is hope however, as many of the casinos are looking at where they are and taking steps to change it. They expect that with the changes that they are making that they could see revenue go up about 2% this year, especially since they are adding many more hotel rooms that will have numerous amenities for those that are staying there. They hope that this will help draw more of their clients back as well as entice new ones.


 

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