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Atlantic City Casinos Enjoy Strong Revenue Growth

Atlantic City Casinos Enjoy Strong Revenue Growth

Atlantic City’s casinos are celebrating after another successful month that saw revenues rise 7.9% compared to September 2016. Last month produced profits of $235.8 million according to newly released figures from the Casino Control Commission.

The city’s gambling operators will welcome the news as they prepare for a number of development and expansion projects next year.

In recent years Atlantic City casinos have suffered from falling profits. However, since online gambling was legislated in 2013 operators have gradually managed to turn things around and begin to generate better profits.

There has also been an increase in tourism with New Jersey’s visitor board working hard to attract visitors to Atlantic City.

Online gaming also saw an increase in September compared to 2016 and the sector now accounts for close to 10% of all gambling revenue in New Jersey. According to the legislation, online gambling servers must be based in Atlantic City establishments and this gives the casino industry full access to the market and therefore increases their profits.

However, while revenues are up, this is only when the closed Taj Mahal casino is excluded from the 2016 figures.

On the other hand, next year should see an increase in casino revenues when the Hard Rock casino brand takes over to Taj Mahal. The casino and hotel resort is currently undergoing redevelopment and is due to reopen next year.

Michael Clay of the city’s Department of Gaming Enforcement said, “The Atlantic City casino industry revenue results for September continue the 2017 trend of overall stability and individual property growth. These casino gaming results provide a strong foundation for the anticipated expansion of Atlantic City’s hospitality and gaming amenities in 2018.”

 

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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