US Casinos And Economic Meltdown

• Author: Rich Vial
• Filed under: Casinos
• Date: Feb 24,2010

Atlantic City has often been considered to be the Las Vegas of the East Coast. It is the second most popular casino destination for casino lovers in America. Most players come here to enjoy the boardwalk and ocean side games and activities during the daytime and gamble in the dazzling casinos at night.

Because of economic meltdown the revenue of Atlantic City casinos dropped by 7.6 %, to approximately $4.55 billion in the year 2008. This has prompted the casino owner of Atlantic City to adopt measures to cut back on expenses in order to take care of the revenue situation. Many of the casinos have started reducing comps and freebies offered to its average casino players.

Total comps offered by the casinos fell by nearly 5%, to $1.55 billion last year. The casinos are strictly monitoring their cash expenses and are cutting out low-end customers who wager less in the casinos. The effects of economic downturn are reflected in this situation, which continues to become worse. As of January 2009, data shows that the promotional expenditure declined 3.2 %, which is essentially $115.4 million; this is comparing it to the same period as in 2008. The comp data comparison for the month of January in the year 2008 and 2009 of some prominent casinos in Atlantic City are as follows:

Caesars went from $12.4 million in comps to $11.1 million this year. Bally\’s went from $15 million in expenditures for January 2008 to $11.3 million in this year. ; and the Showboat Casino decreased from $9 million in comps to $8 million. Overall a clearly deep decrease then the years before and all indications it will get worse before it gets better.

Most slot gaming parlors of neighboring states of New York and Pennsylvania are throwing stiff competition by pulling majority of casino goers to their gaming parlors.

Rich Vial is a Webmaster for US Casino Player Sites & US Casino Reviews.