Sands Bethlehem hurting Atlantic City
Atlantic City gaming revenues fell more than 15 percent in May, according to state gaming regulators.
One gaming analyst believes the trend is going to get worse due in large part to a $743 million slot machine casino in Pennsylvania that Las Vegas Sands opened last month.
In a report to investors, Deutsche Bank gaming analyst Andrew Zarnett said the opening on Memorial Day weekend of the Sands Bethlehem diverted business from Atlantic City. Pennsylvania gaming authorities said the casino earned more than $1 million a day in gaming revenues during its initial weekend.
Zarnett said Memorial Day weekend has traditionally been a busy time in Atlantic City.
“Further, results were also affected by the weakening regional economy of New York and New Jersey, and competition from Pennsylvania and (the casino at the Yonkers Raceway near New York City),” Zarnett said.
Atlantic City gaming revenues have declined 13.5 percent, from $5.2 billion at the end of 2006 to $4.5 billion at the end of 2008.
Zarnett said the downward trend “is likely to persist” in 2010 as competition increases from Pennsylvania. A casino in Philadelphia is expected to open in the fall.
