Atlantic City’s moneymaking casinos saw their profit fall by more than 27 percent last year.
After having to be closed for a week during the Hurricane Sandy devastation, which hurt profit, the casinos together made $360 million in gross operating profits in 2012.
Gross operating profit reflects earnings before taxes, interest, depreciation and other charges. It is a widely accepted measure of profitability in the casino industry.According to Bloomberg Business week, eight out of the 12 casinos made yearly profits including Harrah’s Resort Atlantic City and The Borgata Hotel Casino & Spa. Harrah’s Resort had nearly a 13 percent increase from the year before with $127 million. Although Borgata was just under $120 million, it was a decline of more than 26 percent from 2011.
Caesars Atlantic City had revenue of $82.8 million but it was down more than 5 percent from 2011 unlike Bally’s Atlantic City with $61.2 million, up more than 25 percent. The Showboat Casino Hotel had earnings of $47.1 million, down 2.6 percent.
The Trump Taj Mahal Casino Resort saw revenue of under $44 million, down more than 20 percent from 2011. The Tropicana Casino and Resort saw profit of just under $18 million, up 2 percent, and Trump Plaza was just under $10 million, an increase from their 2011 year-end profit of 2.6 million, reports Bloomberg Business week.
Revel, which filed for bankruptcy in March to restructure, had a $110 million operating loss from its April 2 opening.
Other casinos in the city posted losses too such as The Atlantic Club Casino Hotel, The Golden Nugget Atlantic City, and The Resorts Casino Hotel.
The Atlantic City casinos are in the seventh year of profit decline that began after the first casino opening in Pennsylvania.
According to Bloomberg Business week, Superstorm Sandy didn’t help profits either it worsened them. The casinos continue to suffer to this day from lower revenue due to the hundreds of thousands of homes severely damaged by the storm, leaving residents either homeless or with no money to spend at the casinos.