Atlantic City casinos see largest revenue decline ever
Friday 10th October 2008
September was officially the worst month ever in the history of Atlantic City casinos with revenues having fallen by 15%. A number of factors have come into play to rip the heart out of the sector but it also looks as though there is worse news around the corner with the smoking ban coming into force very soon.
Larry Mullin of the Casino Control Commission has estimated that even after last months falls we could see further falls of between 25% and 30% going forward as and when the smoking bans comes in. This will not only place more pressure on casino group balance sheets but it will see tax income fall substantially for the state and affect the provision of pubic services in the area.
There are now real concerns for the industry in the region going forward and these are reflected by the position of Trump Entertainment Resorts which has flip-flopped between being up for sale and reinvesting in the business for the future. While we have yet to see the fatal demise of any major casino group, there are many people who feel we are too far away from the first major casualty.
September was officially the worst month ever in the history of Atlantic City casinos with revenues having fallen by 15%. A number of factors have come into play to rip the heart out of the sector but it also looks as though there is worse news around the corner with the smoking ban coming into force very soon.