September Casino Revenue Drops

The September casino-revenue report will be lousy, a marketing war could be brewing and several casinos are trying to attract high-profile restaurants, The Press of Atlantic City reported Friday.

Citing a 14-page report by Deutsche Bank Securities analyst Marc Falcone, the newspaper said the September industry revenue report due out next week is expected to show a decline from the year-earlier win of $371 million.

"Same-store sales," or revenue among the 11 casinos open last year, "will be down meaningfully both on the slot and table side of the business," Falcone said.

He blamed the effects of Hurricane Isabel and the placement of most of Labor Day weekend in August.

Falcone, however, noted in his report that October is off to a better start, but some casinos are boosting incentives to stem the flow of customers to Borgata during the seasonal slowdown. Casinos fear a market-share war that could crimp fourth-quarter profits and lead to more layoffs.

Several operators have indicated that they see the promotional environment beginning to heat up, with Harrah's and the Trump properties getting more aggressive, while Park Place Entertainment and Aztar appear to be holding the line thus far, Falcone said.

He further noted that Borgata's "outstanding success" with celebrity restaurateurs has prompted Harrah's, Park Place and Resorts to have talks with high-profile restaurants.

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Author: NJ BIZ