Remaining Land-Based Atlantic City Casinos Fail To Increase Win After Taj Mahal Closes
According to the Press of Atlantic City, analysts predict that the Taj Mahal’s annual revenue, estimated at approximately $180 million, will be absorbed by the remaining New Jersey casinos.
However, the closure of the fifth Atlantic City casino since 2014 didn’t live up to their expectations.
How well are the remaining New Jersey casinos doing?
The official New Jersey Division of Gaming Enforcement figures indicate that despite the closure of the Trump Taj Mahal, the remaining Atlantic City casinos are struggling more than ever.
This November’s $180.11 million win represents a 5.8 percent decrease compared to last year’s numbers. Even excluding the Taj Mahal’s figures, the industry grew by only one percent.
When the Taj Mahal shut down, it was doing battle with the UNITE HERE union’s local chapter over health care, pensions, and wages.
Wayne Schaffel, a gaming analyst, told the Press of Atlantic city that the Taj Mahal’s closure would not have a large positive impact on the revenue of other Atlantic City casinos.
Schaffel told the newspaper:
“What is going to happen is that those people who used to come to the city eight times a year are now going to come six times year and it’s going to continue to decline. I’m not surprised that all of the money didn’t come back into the city. That revenue is gone.”
Are all casinos in New Jersey on the decline?
Not every Atlantic City casino is suffering. On the contrary, several are doing quite well.
Tropicana led the rest of the pack with a 12.1 percent year-over-year increase. It brought in a monthly win of $25.31 million. Bally’s Atlantic City Hotel and Casino also saw its numbers jump by 6.6 percent, bringing in approximately $16.28 million for the month.
Resorts, which is partnered with PokerStars on the online poker front, did not do nearly as well and saw its land-based casino win rise by less than one percent, while the Borgata actually ended up taking a small loss compared to last November’s win.
Where is the decrease coming from?
The Atlantic City casino that fared the worst this November was Caesars, which posted an alarming 12.5 percent decrease, dropping its win to $21.31 million for the month.
Atlantic City’s fiscal crisis
As Atlantic City numbers continue to drop, it’s no wonder that New Jersey is looking elsewhere for a way out of its financial crisis.
In fact, a poll released earlier this month by Quinnipiac University showed that most Garden State residents (79 percent) oppose an expansion of casino gambling.
Just this year, New Jersey voters rejected gambling expansion into North Jersey, the state took over of the municipal government of Atlantic City, federal legislation that could possibly ban online gambling shifted closer to reality, and the Supreme Court of the United States continued to refuse to hear New Jersey’s case for sports betting.
With all of these negatives on the record, it remains to be seen what will happen to Atlantic City in the coming year.
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