ATLANTIC CITY, New Jersey — Atlantic City's casinos saw their gross operating profits cool in the third quarter of this year, decreasing by 8.1 percent to $137.4 million.
Eight of the 12 casinos posted decreases for August and September, but only the Atlantic Club Casino Hotel, which is in bankruptcy, and Revel Casino Hotel, which may be headed back there, showed operating losses.
Revel had a $23.5 million operating loss, which still represented a 36 percent improvement over the third quarter of last year, when it lost $36.8 million. Earlier this month Revel said it is weighing "strategic options," which usually means pursuing a sale or a bankruptcy filing. Laden with debt, the $2.4 billion casino went through bankruptcy earlier this year, emerging in May with much less debt but with lenders owning more than 80 percent of the resort.
The Atlantic Club posted a $1.7 million operating loss, but that was 27.5 percent better than the $2.3 million it lost in the third quarter a year ago. After trying to sell itself to the PokerStars website in a deal that fell through earlier this year, The Atlantic Club filed for Chapter 11 bankruptcy and will sell itself in a court auction where a buyer could emerge next month.
The Borgata Hotel Casino & Spa continued to dominate the Atlantic City market, posting an increased operating profit of more than 37 percent, to $47.2 million for the quarter. Resorts Casino Hotel, boosted by its Margaritaville complex, was up 2 percent to a profit of $708,000.
Gross operating profit includes earnings before interest, taxes and other charges, and is a widely accepted measure of profitability in the casino industry.
The biggest plunge was at Trump Plaza Hotel and Casino, where profits fell nearly 53 percent, to $1.1 million. The Trump Taj Mahal Casino Resort was down 44.6 percent to $9.2 million.
Caesars Atlantic City was down 28 percent to $26 million; the Tropicana casino and resort was down 26.5 percent to $11.8 million, and Harrah's Resort Atlantic City was down nearly 23 percent to $32.8 million.
The Showboat Casino Hotel was down almost 20 percent to $14.5 million; the Golden Nugget Atlantic City was down 13.5 percent to 2.1 million, and Bally's Atlantic City was down 10.7 percent to $17 million.
For the first nine months of the year, the 12 casinos saw profits of $349 million, down 23 percent from a year ago.
The Golden Nugget had the highest hotel occupancy for the quarter at more than 97 percent. The Borgata had the highest average room price at $137.68, while the Atlantic Club had the cheapest at $62.94.
Wayne Parry can be reached at http://twitter.com/WayneParryAC