Throughout its history Atlantic City’s annual gambling revenue has been a one way street – ever upwards. Now analysts are predicting that the laws of gravity will at last kick in and what has gone up must come down. 2007 looks like being the year that gambling revenue declines for the first time. An unexpectedly high drop, nearly 10%, in April adds credibility to the theory.

Nature, timing, man-made obstacles and sheer bad luck seem to have conspired in April to mount a barricade against the forward march of Atlantic City casinos. The weather turned nasty, the month was a Saturday short, competition from new slots venues in other states took its toll, as did the partial smoking ban, and gamblers struck lucky. Two casinos, Harrah’s and Caesars (also a Harrah’s operation), bucked the trend but the other nine reported a decrease in revenue.

The slot machines that were once looked upon as amusement for those accompanying the serious gamblers at the gaming tables are now major revenue makers. Table games have gradually taken a back seat to the mass market slot machines. With slots venues being opened in neighbouring New York and Pennsylvania, maybe now is the time for Atlantic City to step up its marketing to encourage more slots players to turn to the gaming tables for entertainment.

In April slots revenue fell 12.3% in Atlantic City, table revenue was down 3.1%. Total win was US$396.8 million, 6.8% less than in April 2006. Summer may bring better figures but on the horizon is the shadow of bigger operations in Pennsylvania. In April the four racinos there made US$76 million but projects for stand-alone slots venues in Philadelphia, Pittsburgh, Bethlehem and the Poconos will present stiff competition in the future.

Atlantic City must reinvent itself once again, something that will be taxing the minds of marketing teams, tourism officials and top casino management. They did it before - by legalising casinos in 1976; Las Vegas has done it; now Atlantic City must find the way to defy those laws of gravity and keep the out-of-town gamblers coming back again and again. Its all hands to the marketing pumps! (E-05.11.07)

© Copyright 2007 CasinoCompendium



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