Despite the troubles that have befallen the gambling sector in New Jersey, it seems like there is an indication for improvement. According to the financial report, released by the Division of Gaming Enforcement yesterday, the situation is getting better.
The third quarter of the year ended on Sept. 30th when there were eight available casinos in Atlantic City. Compared to this time last year, revenues were relatively higher. The information, included in the report, concerned Tropicana Casino & Resort Atlantic City, Resorts, Golden Nugget and Borgata.
Needless to say, there were venues that remained unprofitable but their financial troubles were well known so the revenue they generated was not too surprising. Trump Taj Mahal, Harrah’s Resort Atlantic City, Bally’s Atlantic City and Caesars Atlantic City Hotel & Casino were the casinos that did not report any growth in sales.
The issue with the closure of Taj Mahal has been making the headlines recently. The venue is supposed to close on Nov.12th but workers are still hopeful that the outcome will be positive. Actually, the closure can be prevented provided that the Union drops the appeal and gives its consent for cutting down on health and pension benefits.
What made communities so worried about the closure of Taj Mahal was the fact that more than 3,000 people would be left unemployed. Managers of Trump Entertainment made a final attempt to avoid the closure by making a promise that company will not discontinue paying health and pension benefits for the next two years. However, they required the Union to drop the appeal.
On Monday, when the numbers for the 3Q were announced, managers were reluctant to discuss if they have reached an agreement with the Union.
Carl Icahn is believed to be the person who can save Taj Mahal from closure. The billionaire is also an owner of Tropicana, which was among the casinos that reported increased operating profits and net revenue.
The net revenue reached almost $93 million, which means that the increase was 33%. Operating profits climbed 57% and reached well over $18 million.
Resorts and Golden Nugget were the casinos that generated the smallest profits. Yet, the progress they made was praiseworthy.
Golden Nugget was among the venues that have been reporting a slight revenue increase but during the third quarter the greatest increase was announced. Sales went from $2 to $5.6 million.
Surprising or not, Resorts was the venue, which has reported the most impressive growth. Profit increased by more than $4 million YOY.
On Monday, Casino Reinvestment Development Authority announced that Resorts will most likely be given the chance to use tax obligations in order to renovate the hotel rooms and extend the buffet area by adding 11 meeting rooms to it. The entire project was estimated to cost $9.4 million.
In general, the net revenue of all existing casino resorts in Atlantic City that also offer hotel accommodation, dining and entertaining facilities, was estimated to be $746 million or in other words, the overall growth was equal to 5.5%.
