There are brand new slot machine operations in Pennsylvania and they are drawing the crowds. This is reflected in the January revenue figures for the casinos in nearby Atlantic City, which showed a dip. The worry for Atlantic City operators is that the result of competition could mean that a trend is set and that revenue for 2007 could decline for the first time. New smoking restrictions are also causing concern.

From mid-April the Atlantic City casinos must reduce smoking areas to just 25% of the gaming floor. Pennsylvania has yet to bring in a smoking ban in public places, although Governor Ed Rendell’s new budget calls for one in workplaces, restaurants and bars. In January the Atlantic City slot machine revenue declined by 7.2% compared to January 2006. Just as Las Vegas has boosted non-gaming revenue, similar projects may be the way forward for Atlantic City.

With many of its casino patrons now likely to stay closer to home to play the slot machines, Atlantic City must become more of a destination resort with plenty of attractions rather than remain a gambling mecca. Predictions for 2007 range from flat revenue or a 1% rise to a 5% fall, but Atlantic City is already undergoing large-scale casino renovations and building expansion that should mean an upwards revenue trend returns in following years. (E-02.19.07)

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