ATLANTIC CITY: Gaming revenue at the city’s eight brick–and-mortar casino was up for the first time in three months, despite the threat of the closure of the Trump Taj Mahal Casino Resort, according to state figures from July released Friday afternoon. Revenues at casinos in July totaled more than $258 million, compared to $245 million from a year ago, according to the state Department of Gaming Enforcement. This represents a more than 5 percent increase. Revenues at Taj Mahal dropped by 8 percent — from $19 million in July 2015 to $17.5 million last month. Unite Here Local 54 strikers have protested outside the Taj Mahal since July 1, and it was unclear until Friday how that labor unrest affected revenues.
“July was a solid month, even though several properties faced challenges including a strike by union-employees at one casino,” said Matthew Levinson, chairman of the state Casino Control Commission. Internet gaming revenue continued to show the highest percentage revenue growth. This was $17.4 million in July compared to $12.5 million from a year ago, a nearly 39 percent increase. Last week, 2,848 employees of the Taj Mahal were notified they would be laid off on Oct. 10. Taj Mahal management blamed striking Unite Here Local 54 workers for preventing a “path to profitability.”
More than a 1,000 union members have been on strike since July 1 after a contract impasse with Taj Mahal management. Anthony Marino, a local market analyst and retired executive with the South Jersey Transportation Authority, said July was an overall excellent month compared to a year ago.
“July 2016 had just about everything — a strike at one casino, nearly nine inches of rain locally, an extra weekend compared to July 2015, nearly a 40 percent increase in online gaming win, influenced, perhaps, by lots of rain … and perhaps curiosity emanating from the constant news about Atlantic City’s financial problems combined with much coverage about Donald Trump’s past activity in the resort,” Marino said
Some of the biggest revenue increases at casinos were a 12.5 percent increase at Borgata Hotel Casino & Spa and a 13.8 percent increase at Tropicana Atlantic City. Borgata’s gaming revenue went from $71.8 million in July 2015 to $80.8 million last month, according to state figures. Tropicana went from $29.1 million in July 2015 to more than $33 million last month, according to the state report. “July having five full weekends, we expected a very good month and were extremely pleased to set a record 13 years after opening,” said Joe Lupo, senior vice president of operations at Borgata.
Lupo attributed slot machine and table game results due to investments in the property, including the nightclub Premier that opened in April and the Borgata Beer Garden and Outdoor Pool along with The Marketplace Eatery that opened in July. The casino report came out a day after 105 employees at the Hard Rock Cafe at the Taj Mahal received notices that they were being laid off on Oct. 5, according to state records. Under state law, notices must be given to employees 60 days before the closing of the facility.
