Even the casual visitor can tell that Atlantic City has been in a bit of a decline. The city’s former glory has faded. Of course, a lot of this has to do with the economy in the United States. Since the recession began the American public has stopped traveling as often for as long, and spending less once the get where they’re going. This has a profound effect on the casino resort industry. Atlantic City has suffered a double whammy this summer when neighboring states, Pennsylvania and Delaware, decided to expand their gambling laws and allow casinos to host table games. This was compounded by the news the New York City, Atlantic City’s best feeder market, wants to add a slots parlor in Queens.
These are some of the major reasons why one of Atlantic City’s best casino resorts is posting another loss in revenues. The Borgata Casino and Resort has rereleased that their second quarter report will show revenues and profits declined. The Borgata’s net income was down almost $1 million from the previous year from $18.3 million in 2009 to $17.3 million in 2010. The Borgata’s revenue was down 2.4 percent in comparison with the same quarter of the previous year.
Boyd Gaming, which has a 50-50 joint partnership with MGM Resorts International for the Borgata Casino and Resort, decided to prerelease the quarterly report because they are trying to secure financing for Borgata related opportunities. MGM Resorts International is trying to sell their stake in the casino resort, and it is believed that Boyd Gaming wants to take over outright. Any financing deal would need approval from the gaming regulators in New Jersey. Boyd Gaming is also stressing that they do not believe that the second quarter of 2010 will be as important as the second half of the year. This should be the tell tale sign of how Atlantic City casinos will fare against the economy and the competition.
