Casino Earnings Fall 35 Percent in Atlantic City in 2013

Atlantic City’s struggles continued in a big way in 2013 as final figures show casino operating profits fell 35 percent for the year compared to 2012. The 12 casinos that operated in 2013 saw operating profit of $235 million, down from $360 million in 2012.

Even with a small boost from online gaming and compared to a year marred by Hurricane Sandy, Atlantic City casinos still saw their operating profits decline by 35 percent in 2013.

The 12 casinos that operated in 2013—the Atlantic Club shut down in January—made $235 million in operating profits, down from $360 million in 2012.

In the fourth quarter of 2013, however, the casinos reduced their gross operating losses by more than 73 percent, to a loss of $5.7 million in the last three months of the year. That was compared to the aftermath of Hurricane Sandy in 2012, when the casino’s collective losses were $21.6 million.

Gross operating profit includes earnings before interest, taxes, depreciation and other charges.

The Tropicana Casino and Resort saw the largest increase in earnings for the year by more than 47 percent to $26.5 million. The Borgata Hotel Casino & Spa profits increased by less than 2 percent, to $121.6 million for the year, according to figures released by the state Division of Gaming Enforcement.

The Trump Taj Mahal Casino Resort posted a gross operating profit of $19.6 million for the year, down more than 55 percent from 2012. Trump Plaza Hotel and Casino showed an operating loss of $4.7 million, significantly down from an about $10 million profit in 2012.

The Golden Nugget Atlantic City had an operating loss $10.4 million in 2013, down from $11.4 million in 2012.

Harrah’s Resort Atlantic City fell by 19.5 percent to $102.1 million and the Showboat Casino Hotel saw its profit fall by nearly 28 percent to $34 million.

Resorts Casino Hotel saw its operating losses widen by more than 54 percent, to $12.2 million.

Bally’s saw its profits decline by more than 45 percent, to $33.4 million, and Caesars saw its profits fall by 16 percent to $69.5 million. The casino’s online affiliate, Caesars Interactive Entertainment NJ, posted a gross operating loss of nearly $1.3 million for 2013. Online gambling went live in New Jersey in November.

Revel Casino Hotel, saw its operating loss increase by 17.4 percent to $130.2 million.

The Atlantic Club cut its operating loss by nearly 34 percent, to $12.7 million, but the casino still shut down in January.

There was one bright spot. Matt Levinson, chairman of the New Jersey Casino Control Commission, said receipts from the luxury tax, hotel tax, tourism tax and sales tax hit record highs last year, according to the Associated Press.

“These numbers show that Atlantic City’s casinos are continuing to broaden their appeal and the casino industry’s focus on developing non-gaming amenities is clearly bearing fruit,” he said.