When it comes to judging the performance of a business venture, three months is a period too short to determine whether it was successful or not. Still, according to the third-quarter casino revenue results, both new players in the casino Mecca – Atlantic City – could improve in the months to come.
The results for the casino revenue in the third quarter of the current fiscal year, which were provided to the state Division of Gaming Enforcement (DGE), showed that the Hard Rock Hotel Casino and the Ocean Resort Casino took the eighth and ninth position in the ranking of Atlantic City’s nine casino properties. Still, officials of the two businesses’ said they remain optimistic about the Hard Rock’s and the Ocean Resort’s revenue in the first year of their operation.
As far as the overall performance of Atlantic City gambling sector is concerned, the local casino market saw a 15.3% decline in comparison to the same quarter a year earlier, despite the fact that only seven casinos operated at the quarter ended in September 2017. Still, there has also been some good news for the local casino industry, as Atlantic City’s gambling revenue is on the way to met or even surpass the amount registered in 2017.
The net revenue of Atlantic City casino sector rose by 17.8% in the third quarter of 2018, with the gaming revenue increasing in October, too, for a fifth straight month.
Hard Rock and Ocean Resort Both Rely on Non-Gambling Operations
The two newest casino venues in Atlantic City each sought operating licenses from the state’s Casino Control Commission in May and June 2018, respectively.
The third-quarter figures provided by the businesses, however, showed that neither one of the two new properties has managed to make the performance it had hoped for. Despite the fact that the revenue projections are not exactly what the casinos have expected, a financial expert reminded that they do not always have to come true. In addition, the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism’s executive director Rummy Pandit explained that it is perfectly normal for gambling operators to be willing to obtain the maximum revenues possible. However, this could not always happen, since revenues always consist of various elements within the gambling properties themselves.
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What is more, both new properties are trying to take advantage of some non-gaming market segments. For example, the Hard Rock Hotel Casino has focused on entertainment, offering a variety of live music and comedy acts performances. The Ocean Resort Casino, on the other hand, has demonstrated large dependence on its non-gambling offerings, such as the HQ2 Dayclub/Nightclub, the TopGolf Swing Suite, as well as meetings and conferences.
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According to information, revealed by Pandit, casino hotels in Las Vegas generate larger profits from their non-gambling offerings in comparison to the gambling amenities. Experts have even hinted that non-gambling offerings could be the key for Atlantic City to match competition from neighboring states.
