ATLANTIC CITY – Buffeted by rain and snowstorms, the casinos
suffered an 8.5 percent revenue decline during a dreary January,
but gaming executives expressed surprise that business did not fall
off even more dramatically.

January’s results represented the second straight month of
single-digit revenue declines, prompting some hope that the market
is finally starting to stabilize after a prolonged slump punctuated
by double-digit drops.

“It really could have been worse,” Mark Juliano, chief executive
officer of Trump Entertainment Resorts Inc., said of the nasty
weather’s effects on business. “Instead of being horrific, it was
just bad.”

Altogether, the 11 casinos won $294.2 million from gamblers in
January. Slot revenue declined 7.6 percent to $195.5 million, while
winnings from table games were down 10.1 percent to $98.7 million,
figures released Tuesday by the New Jersey Casino Control
Commission show.

One gaming analyst noted that in addition to a series of coastal
storms in January, the casino industry continued to deal with the
weak economy and intense competition from slot parlors in
Pennsylvania.

“January’s 8.5 percent decline is somewhat surprising in that I
expected even worse. While the Atlantic City gaming market is still
contracting, this hints at some short-term moderation,” said Israel
Posner, executive director of the Institute for Gaming Management
at The Richard Stockton College of New Jersey.

Despite some optimism, Atlantic City has now racked up 17
straight months of declining revenue. This January was poor
compared to recent years. The casinos posted an all-time January
high of $406.2 million in revenue in 2006. That was before the
recession and competition from Pennsylvania’s new slot parlors
rattled Atlantic City.

January usually is a harbinger for the entire year. Revenue was
down in 2007, 2008 and 2009 after starting off each year with
declines in January.

Don Marrandino, president of the Bally’s, Caesars, Harrah’s
Resort and Showboat casinos operated by Harrah’s Entertainment
Inc., doubts that revenue will fall this year.

“It feels like it’s starting to get a little bit stable, which
would be a good sign,” he said.

Marrandino said the market proved somewhat peppy in January
despite the lousy weather. An ambitious entertainment schedule
combined with an Internet push for hotel bookings should drive more
business during the year at the Harrah’s properties, he added.

Harrah’s Resort and Showboat were the only gaming halls to post
higher revenue in January. Showboat benefited from better results
at the slot machines for an industry-leading 4.4 percent increase.
Stronger table games play pushed Harrah’s Resort to a 2.8 percent
increase.

The Atlantic City Hilton Casino Resort was the worst performer
in January, slumping 26.4 percent. Hilton spokeswoman Tina
Belluscio declined to comment.

The three Trump casinos all had double-digit revenue declines,
including a 23.7 percent drop at the flagship Trump Taj Mahal
Casino Resort. Juliano said the Taj Mahal was up against a tough
comparison to January 2009, when it was the only Atlantic City
casino then to post higher revenue.

While Atlantic City continues to struggle, gaming revenue in
Pennsylvania surged 39 percent in January thanks to two new casinos
- the Sands Casino Resort in Bethlehem and the Rivers Casino in
Pittsburgh. Overall, the nine Pennsylvania slot parlors took in
$184.2 million in slot revenue for the month.

The Sands opened last May and the Rivers in August. Counting
only the seven slot parlors that were open in January 2009, the
year-over-year growth for the Pennsylvania market was 9.6 percent,
the Pennsylvania Gaming Control Board reported.

Pennsylvania’s casinos will become even more competitive with
Atlantic City when they add table games in the second half of this
year. Pennsylvania must complete the regulations before table games
begin.

Contact Donald Wittkowski:

609-272-7258

DWittkowski@pressofac.com