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Aug
23rd

Why Bingo Players Should Care About Atlantic City Casinos

Atlantic City’s 12 casinos posted revenues of $297.2 million in July, a drop of almost 4% from the same period last year. The upscale Revel casino, which emerged from bankruptcy in May, had its best month since its opening. The Boardwalk casino jumped from 10th place in June to sixth place last month The Boardwalk posted $23.4 million in total casino revenues. The figure was a 33.4% increase from July 2012. Revel interim CEO Jeffery Hartmann stated during a conference call “July results at Revel clearly show the impact of our ‘Gamblers Wanted’ campaign. We’re servicing guests and now welcoming back guests … and they’re seeing what a tremendous property this is.”

Revel’s aggressive slots program offered players a refund on of slot losses over $100. Players had to return to Revel over 20 weeks starting in August to get 5% incremental refunds put on their Revel player cards. Many players complained that they were misled by the terms of the offer and believed that the refunds would be all at once. Hartmann told reporters “The vast majority understood the promotion. Obviously, we had an idea of how we were trending over the month. We picked up significant market share. We almost doubled market share in one month. We think it’s sustainable and able to be maintained into August.”

Revel has been laying off employees since spring. While Revel enjoyed a slight boost the overall Atlantic City gaming market continues to struggle against new competitors. Nine of Atlantic City’s twelve casinos, including four owned by Caesar’s Entertainment, posted revenue declines ranging from 1.6 % at the Gold Nugget to 26% at the Tropicana. The only two casinos to post increases were Borgata and Resorts, with 18.9% and 6.2 $ respectively. Joe Lupo, Borgata’s senior vice president of operations stated “Our 10th anniversary campaign was really helpful in speaking to the public, and the promotional events related to the anniversary were clear and direct.”

So why should internet bingo players be concerned about the profits and losses at Atlantic City casinos? Internet gambling is coming to New Jersey in November including internet bingo. Atlantic City casinos are hoping that their online operations will eliminate losses. If internet bingo performs well it will be retained. If not it is possible that some operators will dump their bingo games. The regulated online gaming market is relatively new and currently it is difficult to predict the performance of any game.