Atlantic City Casino Gambling Revenues on Upswing

An independent research group specializing in gambling studies has projected Atlantic City's total gaming revenue for 2008 to be just shy of $5 billion. If achieved, this would be a return to growth after a loss of business in 2007.

The Spectrum Gaming Group estimates that revenue will rise at a 2% growth rate over the previous year. Although the forecast is not as high as 2006's record setting performance of $5.2 billion, Spectrum notes that growth will return to the New Jersey city's casino industry despite many factors that have drwan customers elsewhere.

"There are powerful forces dampening our projections. These range from continued competition from Pennsylvania casinos to a tightened smoking ban at Atlantic City casinos to declining consumer confidence of their finances," said Harvey B. Perkins, Spectrum Senior Vice President for Analysis.

Spectrum also predicts sharper growth in areas like hotel rooms, dining, and shopping.

Spectrum has been studying Atlantic City for over thirty years, and has been remarkably reliable in its predictions. After forecasting a growth rate of 3.6% in 2006, the actual figure was 4%. In 2007, the think tank predicted a 3.6% decline, expected to be within a fraction of what occurred when numbers are released this week.

Atlantic City is clearly on the rebound from the damage done by new casinos in neighboring states. As the area continues to mold itself into a luxury destination rather than a day stop, revenues can be expected to climb higher and faster.



2008-01-08