Slowly but surely, the Atlantic City casino industry is stepping out of the shadow of economic recession.
Atlantic City casino profits up 21% in H1Collective operating profit of Atlantic City’s casinos surged by 21 percent in the first half of 2016, the highest since 2010, according to Fox Business.
From January to June 2016, the eight remaining Atlantic City casinos posted a combined $259 million, compared to $213 million in 2015. But total revenues for the same period barely improved, from $1.66 billion in the first half of 2015 to $1.68 billion in the same period in 2016.
Borgata Hotel Casino & Spa led six of the eight Atlantic City casinos in terms of profits with $106 million in the second quarter, up by 27 percent compared to the same period last year. Borgata was followed by Resorts Casino Hotel, which saw a 26 percent uptick in its profits to $5.7 million compared last year, and Tropicana Casino Resort which saw a 25 percent increase in 2016 profits to $17 million.
Data from the New Jersey State Division of Gaming Enforcement showed that Golden Nugget saw a profit of $13.3 million, up 12 percent compared with last year; and Bally’s was up to $17 million, or about 8 percent over 2015. Trump Taj Mahal reported profits of $2 million, compared with operating losses of $9.6 million in the second quarter of 2015.
Caesars saw a decline in profits of 0.2 percent compared with 2015 to $36.5 million in the second quarter of 2016. Harrah’s profits were down 3 percent to $57 million.
The Press of Atlantic City, meanwhile, have quoted Matthew Levinson, the chairman of the Casino Control Commission saying: “Slowly but surely, casino profits are increasing as operators in Atlantic City work to rebuild their business. The $259 million in profits for the six months is the highest since 2010. Profits were up at six of the casinos — and by double digits at four of them. For the first time in eight years, every casino reported positive operating income.”
Despite the impressive performance of Atlantic City casinos, experts warned that the robust gaming profits of the city may be short-lived.
Threatening gains in Atlantic City was the possible opening of a casino in North Jersey, which will end the city’s monopoly on casino gambling. Voters are to decide the matter in a statewide referendum on Nov. 8,
Next month, Trump Taj will cease its operation following a spat between billionaire Carl Icahn and members of Unite Here labor union.