Worrying revenue drop for Atlantic City
It was yesterday revealed that the worrying slump in both the number of gamers and the revenue produced by gambling in Atlantic City has continued into July. For the popular casino resort city, this is a real blow because July is traditionally the peak of the gaming season, where tourists from all over the United States and the rest of the world flock to casinos for their summer vacation. It had been hoped that the previous popularity of gambling tourism in the summer months would turn around the slump that the casino industry has seen this year – but the crisis shows no signs of letting up.
The official figures from the New Jersey Casino Control Commission speak for themselves – the 11 casinos in Atlantic City took in $438.7 million in revenue at slot machines and gaming tables, which is a 6.6% decline from last year’s figure of$469.8 million in July 2007. This was even more of a setback when combined with June’s figures, which charted an 11% decline from last year’s figures, which suggests that a weak summer is virtually unavoidable. It also appears that 2008 will follow the trend of 2007 in declining revenue overall. It is down by 6.6% to $2.7 billion overall.
Analysts have suggested plenty of reasons for the enormous slump in past years, including the rise of the online gambling industry, which makes gambling tourism superfluous as gamers can now access huge jackpots from their own homes, without having to pay for travel and lodging expenses.
Additionally, the credit crunch has been blamed for the reluctance of tourists to splash out on expensive gambling holidays. The rising price of gas is a major reason or the decline of United States gambling tourism, as it has caused both rises in fuel for cars and planes. Another more complex reason may be the partial smoking ban implemented in Atlantic City, which has acted as a deterrent for those who smoke as they are banned from casinos whilst smoking. With so many reasons, the slump shows no sign of letting up.
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