Another Double Digit Decline for Atlantic City
Late last week the New Jersey Division of Gaming Enforcement released the state’s April gambling revenue figures, and the news was not good for Atlantic City, as revenue there continues to decline. April saw a 12.1 percent decrease over April of 2012, according to the new numbers. Many attribute the decline to the proliferation of newer casinos in neighboring states such as Pennsylvania and Maryland.
Of the twelve casino properties located in Atlantic City, Revel, which is set to come out of bankruptcy this week, posted the worst losses. Open just a year, Revel suffered a 40 percent revenue decline from last year, taking in a rather measly $8 million last month. The property cost $2.4 billion to construct.
Revel’s interim CEO Jeffrey Hartmann released a statement on Friday addressing the dismal reports, saying, “Although our April gaming revenues were disappointing, we are launching new initiatives that will drive future growth and reintroducing Revel to the gaming public over the next couple of months.”
“Tonight we are opening our new Pearl Lounge, an exclusive members-only lounge for Pearl Card holders, that will promote increased loyalty among our existing guests and attract new slot players to Revel. This is the first of many new amenities and investments being made at Revel as we seek to broaden our appeal across a variety of demographics and gaming preferences,” the statement went on.
Interestingly, one of only two properties in the city to post revenue gains over the same period last year was the Atlantic Club Casino Hotel, a casino that is very much in the news right now over its temporarily moribund purchase agreement with online poker giant PokerStars. The Atlantic Club saw its revenue jump by nearly 37 percent to $11.3 million in April.
The parent company for PokerStars, Isle of Man-based the Rational Group, made a bid to take over the ailing Atlantic Club late last year. After some delays in filing an application for an interim operating license with New Jersey regulators, earlier this month PokerStars received notification from the Atlantic Club that the deal had essentially “timed out” and was thus terminated. PokerStars, in turn, filed a lawsuit against the Atlantic Club in an effort to preserve the deal and to prevent the Atlantic Club from being sold to another party.
A court date is coming up on May 17, and it is a case that will be very closely monitored by both fans of online poker and pundits. Should PokerStars emerge triumphant and complete the deal to take over the Atlantic Club, it will be a re-entry into the United States gambling market for the company after its US-facing online poker site was shut down by the US Justice Department in 2011 amid a crackdown on illegal gambling.
There are many who, in the wake of the signing of New Jersey’s internet gambling law back in February, welcome the PokerStars deal, viewing the company as a savior of sorts with the potential to come in and turn around a struggling property while saving 1,800 jobs in the process. There are others, including the influential gambling trade association the AGA, who believe PokerStars should be excluded from the regulated US market in light of the fact that they continued to offer online poker to US players after 2006.
The lone other property in Atlantic City to post a positive gain in the reporting period was Caesars.
