Borgata lifts AC results

Wednesday, Aug. 13, 2003 | 9:17 a.m.

SUN WIRE REPORTS

ATLANTIC CITY -- The Borgata Hotel Casino & Spa won $46.9 million from gamblers in its first month, staking New Jersey's casino industry to its most lucrative month ever.

The Borgata, the first new casino to open here in 13 years, won $32.6 million at the slot machines and $14.3 million at table games, according to statistics released Tuesday by the state Casino Control Commission.

The new game in town hurt most of the casinos: Seven of the other 11 saw their revenue drop from the same month of 2002. Four -- Trump Plaza, Trump Marina, Tropicana and Resorts -- posted double-digit percentage decreases.

"It probably could have been a lot worse," said Michael Pollock, editor of Michael Pollock's Gaming Industry Observer newsletter. "Borgata could have taken a much bigger bite out of the market.

"But a July opening -- in Atlantic City -- is the best month to do it. There's so much demand to come to Atlantic City in the summer, everyone's going to do relatively well anyway," Pollock said.

As a whole, they did.

The casinos won $436.1 million from gamblers in July, more than in any one month in the 25 years since the first casino opened and a 4.4 percent increase over July 2002.

Despite its novelty and widespread media coverage of its long-anticipated July 2 opening, Borgata didn't crush its competitors.

The $1.1 billion casino, which has 3,650 slot machines and 145 table games, won less than Trump Taj Mahal, Caesars Atlantic City and Bally's Atlantic City, although the Bally's number was artifically inflated by its December 2002 annexation of the bankrupt Claridge casino next door.

"I would've expected a higher number," said Pollock, referring to Borgata's revenue figure. "But there could be a lot of reasons for it. There might have been more gawkers than players or their database might not be up to speed."

Still, it was an impressive debut, analysts said.

"The history of Atlantic City is that the casinos have historically struggled for the same pie," said Adam Fine, editor in chief of Casino Player magazine.

"Borgata's goal is to expand the market to a different group of consumers. Borgata may not have come in first, but it was a strong showing and they showed that they'll expand the market beyond its traditional bus and drive-in customers to a younger, more affluent and hipper customer."

Borgata spokesman Michael Facenda said the casino was happy with the first month's results.

"We're very pleased with the level of business we're getting. It was a great 29-day month," he said. Companies that own and manage casinos in Atlantic City include Park Place Entertainment Corp., Harrah's, Trump Hotels & Casino Resorts Inc. and Aztar. Park Place combined its Claridge casinos with its Bally's property at the end of last year. Starting in January, Bally's and Claridge have reported a combined revenue figure.

The casino win, in millions of dollars, compared to July 2002: