Slot Machines Continue to Drive Atlantic City Casinos

Atlantic City is about to bust beyond the seams with an increase in gambling revenue thanks to expanding casinos, a strapping economy and surprisingly great weather during the month of April.  Five out of the twelve casinos operating in Atlantic City reported increased earnings from table game revenue, which was a significant factor in giving April '06 a 3% total revenue increase from the same time period in 2005.

However, the driving force behind the continued success of Atlantic City has been (not surprisingly) the slot machines, which accounted for approximately 3/4 of total gambling revenue - bringing in $325 million for April. Although things are looking very promising for Atlantic City slot machines, there is a legitimate concern that the recent passing of legislation by Pennsylvania allowing for fourteen slot casino licenses and the legalization of slot machines will be a detriment to the gambling business in nearby New Jersey.

Despite this concern, Atlantic City casinos have been doing very well in preparation for the advancing competition.  The expansions of several casinos, including the Atlantic City Hilton,  the Borgata this summer (which for the first time ever was the top grossing casino in Atlantic City, primarily thanks to its craps and baccarat), and Caesar's Palace, as well as the introduction of beachside bars and many more non-gaming entertainment opportunities are giving gamblers more cause to visit Atlantic City and keep playing the slot machines.

As for Borgata, which was dethroned by Harrah's Bally's (All five Harrah's casinos did very well, bringing in over $440 million combined in April), their lagging was due to to not having enough capacity and casino floor space.  As a result, Borgata Casino is executing a $525 million expansion that will include forty-four more table games, fifty poker tables, and over 1,000 new slot machines.  Harrah's, on the other hand, attributed much of their success to mainstreaming their Player Loyalty Rewards program at all five of their casinos, meaning players can now receive transferable comp points at any of the gaming properties, including action on all slot machines in each of the casinos.

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