The gambling industry in Atlantic City got a painful wake up call last year, as they saw revenues fall 5.7% on 2006's figures. This is the first such revenue decrease since casino gambling began in the area in 1978.
The 11 casinos in the city took in $4.92 billion in 2007, down from 2006's figure of $5.21 billion. Only three out of the 11 casinos reported an increase in revenue.
Slot machine revenue seems to be the main factor – falling 8.9% in 2007. Revenue from table games, however, rose 3%.
Mark Juliano, the chief executive of Trump Entertainment Resorts – a company which operates three casinos in the city, commented “It was difficult, no doubt about it [...] The real impact of '07 was plain and simple: It was Pennsylvania.”
Juliano was referring to the opening of slots parlours in Pennsylvania, which drew customers away from the city. This was not helped by a partial smoking ban.
The only casino which had what could be considered as a 'good year' was Ceasers Atlantic City – who saw an increase in revenue of 5.1%. The Harrah's Atlantic City, who normally dominates the market, also saw an increase in revenue – but only 1.6%.
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