FLAT REVENUES
Weinert said he expects overall revenues this year to be about flat, with a possible fluctuation of 1 percent above or below the break-even point. But Frank Fantini, publisher of The Gaming Morning Report, says a decline of as much as 5 percent is possible this year.
Last year, Atlantic City's revenues came in at US$5.2 billion, up 4 percent from the year before.
The closing in November of The Sands Casino and Hotel is also expected to hurt the bottom line.
"Some of that money will flow to other casinos, but some of it won't be recovered until another property takes its place," Fantini said.
There are now 11 Atlantic City casinos.
Smoking restrictions are another wild card. As of April 15, casinos must designate at least 75 percent of their gambling floors as smoke-free. The industry is worried about losing its smoking patrons, as well as the millions of dollars it will cost each property to wall off smoking areas and install expensive ventilation systems.
STATE INTEREST
The state also has an interest in keeping revenues flowing. Casinos pay 8 percent tax on gross revenues, and pay another 1.25 percent for projects approved by the Casino Reinvestment Development Authority. Last year, that worked out to US$417.5 million in revenue taxes and US$65.2 million in reinvestment obligations.
But even if revenues decline this year, almost no one thinks it would be an irreversible trend. Tolosa said casinos shut down last July during a state budget crisis, a revenue loss he doesn't expect to recur this year.
Three casinos are adding 2,500 hotel rooms over the next several years, and still other companies are considering building new gaming halls here.
"I don't think anybody doubts that long-term, Atlantic City is going to remain a powerhouse," Fantini said.
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