Atlantic City Revenues Continue to Plummet

Live gambling continues to feel the impact of the economic downturn, with major gaming destinations in the US continuing to produce abysmal numbers. The latest: AC casinos saw a 13% decline in revenue in July.

Atlantic City was already coming off a terrible year, suffering a historic 7.6% decline in 2008. Those hoping that the worst was over have been sorely disappointed in 2009, as the year-to-date revenue decline has been a whopping 15%.

The culprits: the worsening economic climate in the US and increased competition from nearby states. Pennsylvania and parts of New York recently allowed the installation of slot machines at a few facilities, likely putting at least a small dent in the traffic that would have otherwise flowed to New Jersey.

Some critics also point to AC’s general failure to present itself as a destination, as the city tends to rely a bit more on local traffic than other gambling resorts.

The bright side: as live gambling revenues continue to decline, operators are going to have to take a much more serious look at entering the online gambling waters, possibly to ensure their survival. That sort of focused, motivated political clout could go a long way toward advancing the legislative goals of the pro-poker lobby.