Atlantic City casinos are struggling as profits are not the same as before. Tilman Fertitta a self-made billionaire and owner of the popular Golden Nugget casino say that 9 casinos are way too many for the Atlantic City market.
In an interview with Atlantic City Press, Fertita said: “It’s not a nine-casino market, and I don’t understand why nobody realizes that. You could say the market is going up and that we’ve added thousands of jobs, but now every other casino has had to lay off jobs, so I don’t even know how big the net gain is.”
He also said that now none of the casinos are having the cash flow which they did before. According to Fertita, it is a seven casino market.
“I think it’s a huge mistake again. It’s a seven-casino market, and when it was seven casinos, everybody was putting money back into the properties. Now, they won’t.”
According to the figures released by the New Jersey Division of Gaming Enforcement, the profits for Atlantic city casinos were down by 15% for the financial year ending 31 December 2018. The gross opening profit fell 15.4% to $582 million.
Moreover, according to the latest figures released, nine of Atlantic City casinos have posted a decline of 6.8 percent year-on-year in profits for the second quarter to June 30.
The only casino which posted a positive uptick in profit for the quarter is the Borgata casino.