New Jersey’s casino industry is one of the biggest in the United States. Unfortunately, the events of 2020 have been extremely hard on the casino companies operating here. New reports have just come out that show Atlantic City’s third-quarter revenue fell by 37% this year.
It’s an astounding drop to see. Unfortunately, some believe that the year’s fourth-quarter earnings may drop even more. Today, we will take a look at which properties managed to bring in the most money.
Let’s get into it!
Governor Murphy Claims New Regulations Could Be Coming Soon
This has been a remarkably difficult year for state leaders around the country. Governors are being forced to implement measures that have a massive effect on the local economy. Trying to protect public safety while keeping the economy afloat is proving to be extremely difficult.
Unfortunately, Governor Phil Murphy has been warning that additional regulations could soon be on their way. New Jersey has been seeing a sharp increase in Covid-10 cases recently. This past Monday, an additional 4,790 cases were recorded in the state with 16 new deaths.
Murphy has already implemented several new regulations over the past few months. Many of these have targeted casinos. Earlier this month, he started ordering casino restaurants to stop offering indoor dining past a certain time.
Many now fear that the casinos in Atlantic City could be forced to completely shut down. Several different states have recently shut down their casinos. Unless New Jersey’s infection rate begins to drop, this could be coming here, as well.
More regulations will have a serious impact on the casino industry here. As many know, the casinos in this state have been hurting badly over the past nine months. No one knows how things will look in the future.
We’re now beginning to see how much money the casinos in New Jersey lost over the months of July, August, and September.
Here’s Where Atlantic City’s Third-Quarter Revenue Stands
Many analysts have been eagerly waiting to see how the casinos in New Jersey managed to fare during 2020’s third quarter. We’ve seen several other major casino destinations release their revenue reports recently. This week, New Jersey did the same!
Things are about as bleak as many predicted. The casinos in New Jersey saw a massive 37% drop in revenue during the year’s third quarter. Capacity limits and other intense regulations have contributed to this large drop in earnings.
Overall, the casinos in this state brought in just $150.5 million over the months of July, August, and September. The vast majority of casinos here saw a large drop in earnings. Only the Ocean Casino Resort, previously one of the worst-performing casinos in the state, saw a revenue increase.
Jane Bokunewicz, coordinator of a gambling and tourism institute at Stockton University and respected gaming analyst, spoke about this drop to the media this week.
“The data released today confirms what many have already suspected: The current public health crisis has both suppressed consumer demand for brick-and-mortar casino gaming and related amenities, and increased the costs of operating these services,” she said. “This is a devastating equation for casino operators and their employees.”
Hard Rock Atlantic City’s gross operating profit fell by 14.3%. Tropicana AC saw a massive 43.8% drop in revenue. It’s an extremely difficult time for all of the casinos operating in the state of New Jersey.
We’ll continue offering updates on any additional regulations placed here over the next few weeks!
Nevada Casinos Are Now Limited to Just 25% Capacity
Things aren’t much better over in Nevada. This state remains the biggest casino destination in the country. Unfortunately, casino revenue has been dropping considerably this year and is likely to drop even further over the next couple of months.
Over the weekend, Nevada Governor Steve Sisolak announced a new set of regulations on different businesses. Many of these regulations are directly targeting casinos. Under the new state rules, Nevada’s casinos can only operate at 25% capacity.
Sisolak understands the impact of these new regulations. He also understands that something needs to be done to lower infection rates in the state. It seems likely that these new rules will have an impact on tourism into the city.
The new rules put an end to all of the major entertainment shows in Las Vegas. Many of the major casino-resorts on the Las Vegas Strip were set to resume their big shows. These will now be put on hold for at least the next three weeks.
The US casino industry is being put to the test like never before. Hope is that new regulations help to lower infections around the US. Stay tuned for more news on the casino rules being set in place over the rest of the year!
Are you surprised to see where Atlantic City’s third-quarter revenue stands? When do you think things will begin to improve here? Let us know in the comments section below!