After a mid-decade meltdown where five casinos belonging to Atlantic City shut down, good news came soaring in when the currently running nine casinos gathered a revenue of over $3 billion. This is a significant 15% increase in revenue from what was collected in 2018, and it also marks the first year since 2012 when Atlantic City casinos have been able to get the benchmark figure of $3 billion. In 2012, Atlantic City had 12 running casinos. The revenue figure is $3.46 billion, to be exact, and does not yet consist of the revenue collected from horse racing bets.
Much of this significant figure is credited to sports bets, internet bets, reopening of the Trump Taj Mahal as Hard Rock in 2018, and the reopening of the former Revel as the Ocean Casino Resort. The legalization of sports betting in NJ and the flourishing online gambling business pushed the revenue of the Atlantic City casinos to an even higher level.
These factors brought in a huge surge of gamblers ready to pay for numerous gambling activities in the Atlantic City casinos. Additionally, the two reopenings also resulted in the opening of numerous jobs, enabling several people in the area to earn a livelihood.
2018 was the turning point for Atlantic City casinos
In 2018, Atlantic City casinos gathered a gross revenue of $2.86 billion, just shy of the $3-billion mark. It was an upward journey of more profits ever since then, and in just 18 consecutive months of great business, the Atlantic City casinos were able to accumulate $3 billion from gamblers.
Another contributing factor to this phenomenal growth has been the marketing of the Atlantic City casinos as not just a gambling destination but also other non-gambling activities. People came in for numerous vacations and business trips, and this revamped the image of the casinos as a resort too. The diversification of the business activities led to a huge surge of visitors, which eventually gave a huge push to their revenue.
Significance of the $3-billion revenue generated
The more revenue you generate, the more taxes you need to pay. In line with the massive amount of revenue generated in 2019, the Atlantic City casinos are expected to pay a tax amount of $152 million. This is a significant 660% increase from the amount that they paid in 2018.
The Atlantic City is prepared to come up with a sound budget that will allow them to take care of all debt payments and also keep their future growth steady and sustainable.
Even though the $3-billion revenue is a huge achievement, the Atlantic City casinos are expected to have a potential of doing much more, keeping in mind that in 2006, they were able to generate a revenue of $5.2 billion. This phenomenal benchmark figure is still a long way to be close to achieving; however, the current market situation of the Atlantic City casinos creates a good footing for them to be able to do so.