AC Casinos Back In Action

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. With them sidelined, the state shuttered casino gaming on July 5th, subsequently causing the estimated loss of nearly $4 million in tax proceeds for the three day closure. The 12 casinos in this jurisdiction lost as much as $16 million while slot machines and gaming tables were idled.

The city’s most lucrative property is the Borgata Hotel Casino & Spa, a joint venture of MGM Mirage and Boyd Gaming Corp, which lost as much as $1.9 million a day according to Bloomberg News.

As soon as a budget compromise was reached during the wee hours of Saturday morning, Casino Control Commission Chair Linda M. Kassekert was contacted to be given authorization to reopen the casinos. All 12 properties were reopened by 8 a.m. Saturday morning, Kasskert said, reporting that she personally spoke with CEOs of 11 of the 12 casinos to inform them that they could reopen.

By 7 a.m. inspectors in each casino had returned to their posts to return gaming equipment keys to casino officials.  Immediately thereafter casinos were able to start dealing cards and throwing dice.

“I’m pleased that we were able to get casinos back into operation within an hour after Gov. Corzine lifted the state of emergency,” Kassekert said.  “Our inspectors were notified right after I lifted our suspension order and they responded quickly and professionally.”

“The reopening went very smoothly, in large part because of the dedication of our inspectors.  We had inspectors volunteering to come in and help get casinos back in operation,” Kassekert said.  “After he signed the executive order, Gov. Corzine said that casinos could be back in operation within an hour.  I’m proud to say we met that deadline and had Atlantic City’s casinos back on line shortly after 7 a.m.”

Bill Lerner, a gaming analyst with Deutsche Bank, said in an investor’s letter the impact to the major gaming companies should be minimal in the 3rd quarter. The loss he estimates will be about three cents a share for Trump Entertainment Resorts which operates three casinos in Atlantic City, about one cent a share for Harrah’s and less than a penny for Boyd Gaming and MGM Mirage.

The casinos have been on a roll this year, even with this revenue speed bump. For the first six months of 2006, Atlantic City casinos won $2.5 billion, up 5.9 percent from the
same period in 2005. During June, the 12 properties reported $428.1 million in casino win, also a 5.9 percent increase over the same month a year ago. A New Jersey Casino Control Commission report said casinos won $318.7 million from slot machine operations and another $109.3 million at table games . Slot revenue increased by 3.7 percent while table revenues increased 12.8 percent. Casinos paid $34.3 million in taxes on their gross revenues during June.

The casino’s individual websites were also touting the return to gaming to reassure nervous gamblers who were worried they might have to cancel plans to visit the shore.