Despite declines, casino operators still interested in AC expansion
According to the NJDGE, Atlantic City casinos generated a combined gross operating profit of $534.9 million in 2010, a jaw-dropping 27 percent decrease over the $729.7 million the properties posted in 2009. In the fourth quarter of 2010 alone, gross operating profit dropped an astounding 44 percent.
Ten of Atlantic City’s 11 casinos reported operating profit losses for 2010 ranging from 9 percent to 40 percent when compared to 2009. The lone bright spot was the Tropicana Casino & Resort, which had an operating profit increase of 7.2 percent for the year.
The Press of Atlantic City cited the struggling local economy and increased competition for gambling dollars from Pennsylvania and other bordering states as the primary reasons for the double digit loss in Atlantic City casino cash flow.
Despite these declines, some operators are showing interest in joining the Atlantic City gaming marketplace. Recently, BET Investments paid Trump Entertainment Resorts $5.5 million to remove a casino prohibition clause from a parcel of land it originally purchased from Trump in 2005. The land is the former site of the Trump World’s Fair Casino, which BET originally planned to convert into luxury condominiums.
Earlier this year, Landry’s Inc. purchased Trump Marina Hotel Casino and is in the process of rebranding it into a Golden Nugget property.