Atlantic City’s Profits Are Actually Up?

 
They might be facing closure of four big casinos in a single year, but don’t count Atlantic City out just yet.

The besieged gambling mecca and home of many, blackjack success stories, that is Atlantic City has had to weather so many storms this year it could be forgiven for thinking that the gods themselves had been refused a comp on their last visit and were holding a grudge. However it has perhaps finally had a piece of good news to counter-balance some of the inclement conditions with which it has had to contend, and whilst it may only be a hole in the clouds, any rays of hope are welcome.

Typically when the New Jersey Division of Gaming Enforcement has something to say the Atlantic City community holds its collective breath in lieu of whatever ghastly pronouncement on its prospects and future might issue forth, but this time, they had good news. In the second quarter of the year operating profits of the still functioning casinos in the city actually rose, by a rather healthy looking 35% which means someone is still flipping those blackjack cards.

The Borgata Hotel Casino & Spa posted the largest profit of some $43.2 million a rise of $15.1m over the same quarter last year representing a full 53% increase year on year, however even this apparent success story has is somewhat tarnished by the $11.8m tax settlement that has been applied to second quarter earnings at the casino as part of an overall $88 million tax settlement that was reached between the casino and city in June.

In April, May and June of this year the casinos of Atlantic City managed an $83 million operating profit between them, which is an increase of some 34.9% on the same period last year, which is all the more impressive when you remember last year New Jersey hadn’t legalized online gambling as yet. Does this mean those who followed the closing casino strategy, so much in evidence earlier this year, were too quick to jump ship?