ATLANTIC CITY, New Jersey -- (PRESS RELEASE) -- Atlantic City casinos will
generate $4.99 billion in gross gaming revenue this year, according to
projections by Spectrum Gaming Group, an independent research firm.
Although the figure represents 2 percent growth over Atlantic City's
2007 performance, it still falls below the record-setting year of 2006,
when the industry generated $5.2 billion.
"Within that forecasted increase, there are powerful forces dampening
our projections. These range from continued competition from Pennsylvania
casinos to a tightened smoking ban at Atlantic City casinos to declining
consumer confidence of their finances," said Harvey B. Perkins, Spectrum
Senior Vice President for Analysis.
"On a positive note, Atlantic City will continue to experience growth
in non-gaming areas, fueled in part by the addition of 2,500 hotel rooms
coming on line in 2008, coupled with added traction from retail, dining and
other attractions," Perkins said.
Although Atlantic City will benefit from the lack of new competition
opening in its immediate market in 2008, the city will feel the brunt of
new eastern Pennsylvania casinos planning to open in 2009 and 2010. These
include Sands Bethworks in Bethlehem and Foxwoods and SugarHouse in
"Amid all that competition, however, Atlantic City will continue its
evolution into a regional entertainment destination in coming years, with
the expected opening of at least two billion-dollar casino resorts and
continued growth in segments ranging from conventions to
free-and-independent travel," Perkins said.
Spectrum Gaming Group executives have been analyzing the Atlantic City
market for three decades. The firm in 2006 projected a 3.6 percent increase
in gaming revenue, and the final tally showed a 4 percent increase. In
2007, it projected a decline of at least 3.6 percent, and the final number
(scheduled for release later this week) is expected to be slightly below
that projection and likely will be close to our moderate-case projection of
a 4.6 percent decline.