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Revenue off 13.2% at Atlantic City casinos in 2009
Revenue for the 11 casinos here fell 13.2 percent last year to $3.9 billion, the lowest since 1997.
The decline continued a pattern that began late in 2006, when Pennsylvania opened its first slots parlor, Mohegan Sun at Pocono Downs, in November.
“Obviously, it was a tough year, a helluva tough year,” Don Marrandino, Eastern Division president for Harrah’s Entertainment Inc., said during a conference call with reporters yesterday. “The economy and increased competition took their toll.”
“We have to reinvent what what we are doing here to become more of a resort and entertainment destination.”
Harrah’s Entertainment owns four casinos in Atlantic City, which combined to make 52 percent of last year’s total revenue.
The firm also owns Harrah’s Chester Casino and Racetrack in Delaware County, which took in $24.1 million last month — second only to PhiladelphiaPark Casino and Racetrack, now called Parx, among Pennsylvania casinos. Parx took in $26.4 million.
Collectively, the nine Pennsylvania casinos generated $155 million last month, up 28.1 percent from December 2008, when only seven slots parlors were open.
Meanwhile, revenue decreases for Atlantic City’s casinos went across the board.
All 11 casinos at the seaside resort reported annual drops in revenue, ranging from a 5.9 percent decrease at market-leading Borgata to a 22.9 percent falloff at both the Atlantic City Hilton and Trump Plaza casinos.
In December alone, revenue for the Atlantic City casinos collectively fell 9.8 percent, to $272.1 million. Slots revenue, which accounts for about 70 percent of total gambling revenue, fell 12.5 percent, while table-games revenue dipped 4.3 percent.
Only Caesars reported an increase in revenue for the month, up 4.4 percent. That was driven primarily by table games, for which revenue shot up 19.4 percent.
But now, Pennsylvania slots parlors are gearing up to add table games by summer, after passage last week in Harrisburg of legislation allowing them.
Marrandino addressed the new threat yesterday.
“It’s not new news. We’ve talked about it for a long time,” he said. “It’s going to happen sometime this summer or end of summer. Our goal is to do what we have been doing and reinvent our business model.”
Still, he added, “It’s like when I was in Las Vegas and California came on with Indian gaming. I just don’t know what’s going to happen.”
Pennsylvania casino operators are wasting no time getting ready for table games. Several report they have already placed equipment orders and will be hosting job fairs in the weeks to come for dealers, cashiers, and additional beverage servers.
At least one gambler, Gloria McCloskey, 72, of Harrisburg, said table games would draw more people to Pennsylvania’s casinos.
“Oh, yeah, it will definitely help Pennsylvania,” McCloskey said recently as she played a quarter video-poker machine at Hollywood Casino near Harrisburg.
Pennsylvania’s gain will be New Jersey’s loss, though.
For some of her live blackjack and poker play, McCloskey now goes to Atlantic City.
http://www.philly.com/inquirer
