David McKee

Unburdened of four unprofitable casinos, if the revenue in Atlantic City is counted on a “same store” basis (i.e., leaving Revel, Showboat, the Atlantic Club and Trump Plaza out of the picture), the Boardwalk actually saw a 4% increase in “same store” revenue last month. “We are seeing some new customers who have either never been here before or were going to other properties,” reported Borgata Senior Vice President Joe Lupo, while Resorts Atlantic City is chasing potential new customers with “very aggressive” comps and promotions.

Still, the glass is half-full. Of the play that went to the four closed casinos, “We expect a little bit more than 50 percent of that business to be recaptured by the
existing casinos, and about 40 percent to be lost entirely. We expect the casinos to go after the best customers,” said Fitch Ratings analyst Alex Bumazhny, “rather than the less optimal customers.” Bumazhny was surprised that Trump Taj Mahal failed to benefit from the closing of Trump Plaza — indeed, it suffered a steep fall. On the positive side, Internet gambling accounts at the casinos increased 6%. The should soften the blow to the market of the defection of Internet partners from Trump Entertainment Resorts, the company that can’t Continue reading →