AC Casino Take Drops in July But Record Year Is Near Certain

But don’t feel too bad for the casinos, 2006 is turning out to be a record year. Casinos have so far emptied $3 billion from casino gambler’s pockets this year, an increase of 4 percent over the first seven months of 2005.

“Obviously, the shutdown of the casinos for three days in the beginning of the month had an impact on the industry,” Casino Control Commission Chair Linda M. Kassekert said. “Despite the fact that casinos were closed for three days early last month, we are on track to surpass last year’s casino win.”

The casinos were forced to close due to a budget standoff that pitted the state’s Republican governor Jon Corzine against the state’s Democratic legislature in a battle of wills over its 2007 budget. When an agreement was not reached, all non-essential state services were curtailed including the Casino Control Commission inspectors who ensure the casinos operate legally. The commission suspended the certificates of operation for all 12 Atlantic City casinos effective on July 5. Once a budget agreement was reached and the governor ordered the reopening of state offices, commission inspectors returned and casinos reopened at 7 a.m. on July 8.

The shutdown is estimated to have cost the state about $4 million in taxes and the casinos about $50 million in winnings.

"That weekend was nowhere near what it would have been otherwise," said Joseph A. Corbo, President of the Casino Association of New Jersey. "On either side of the shutdown there was softness."

The slot machines took the biggest revenue hit, decreasing in take 8 percent to $345.8 million. However, the rising popularity of table games brought in $134.7 million, a 4.7 percent increase compared to July 2005.  Since the casinos must pay 8 percent in taxes on gross revenues, New Jersey will get $38.4 million for the Casino Revenue Fund which pays for programs benefiting qualifying senior citizens and people with disabilities. The casinos have paid more than $241 million into the fund this year.

In addition, the casinos incurred another $6 million in reinvestment obligations. They are required to reinvest 1.25 percent of gross revenues in projects approved by the Casino Reinvestment Development Authority.

The Borgata had the largest take of all the casino resorts, which was buoyed by the opening of a new $200 million expansion just days before the shutdown. In all, the property brought in an average of $2.36 million a day for a monthly take of $73,307,725. It was the only casino that significantly topped last July’s win. The only other casino to have seen an increase in this July’s win was Caesars which took in $54,161,219 in July. In July 2005, Caesars won nearly the identical amount, bringing in $53,061,861.

The Sands brought in the fewest dollars, winning $15,398,873 in July.

For the year to date through July The Atlantic City Hilton saw the steepest increase in its slot machine take, rising 15 percent over the first seven months of 2005 to $132,997,397 compared to $115,637,347 last year. The Sands suffered the biggest decline, losing 7 percent to $77 million.

At the tables, Showboat turned in a monstrous 58.4 percent increase to $39,843,111 while the Tropicana lost 11.7 percent of its take at the tables to $71.6 million.