Atlantic City Casino Earnings Down 27% in 2010

Press of Atlantic City: Casino earnings plunged 27 percent last year as the fragile economy and competition in surrounding states made it more challenging for Atlantic City’s gaming industry to make money.

Altogether, the 11 casino hotels posted gross operating profits of $534.9 million in 2010, compared with $729.7 million in 2009, year-end figures released Monday by the New Jersey Division of Gaming Enforcement show.

Operating profits fell 44 percent in the fourth quarter to $62.6 million, reflecting a dismal winter for the nation’s second-largest casino market.

Tropicana Casino and Resort was the lone standout for 2010, posting higher operating profits for both the fourth quarter and the entire year. Tropicana is in the midst of a turnaround under the ownership of billionaire financier Carl Icahn, who bought the property for $200 million last year after the troubled former operators were stripped of their casino license.

Borgata Hotel Casino & Spa saw its operating profits drop nearly 15 percent in 2010 but maintained its No. 1 position overall at $174.7 million. Harrah’s Resort was second at $134.6 million, down 9 percent from a year ago.

The Atlantic City Hilton Casino Resort, Resorts Casino Hotel, Trump Marina Hotel Casino and Trump Plaza Hotel and Casino all posted operating losses for the year. The Hilton was the biggest loser, posting an $18.9 million operating loss, followed by Resorts at $18.6 million.

Trump Marina, which suffered an $8.3 million operating loss for 2010, is under sale for $38 million to Landry’s Inc., a Houston-based gaming, restaurant and entertainment conglomerate.

While weaker properties such as the Hilton are in the red, Atlantic City’s gaming industry remains profitable overall. However, it continues to be hurt by the sluggish economy as well as stiff competition from casinos in surrounding states. Pennsylvania, Atlantic City’s chief rival, introduced table games last July to intensify their border war.

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