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Borgata Casinos in a Slump and Revenues Down

The August 04, 2023, By Benard Lamothe

Although Governor Christie plans to revitalize Atlantic City, right now it seems that the downward slump in the city is going on, as revenue at the Borgata Hotel fell in the second quarter.

The Boyd Gaming Corporation, the Borgata’s parent company, reported Tuesday that the net revenue at the hotel declined 2.4 percent to 186.9 million, with gross operating profits sank nearly 10 percent to $43 million, compared to the reports last year.

Boyd executives said that the Borgata’s revenue was hurt by promotional giveaways at the Pennsylvania casinos, together with fewer visitors to Atlantic City overall at the start of the traditionally busy season. In addition, this year’s heat wave has further been blamed, as utility costs also cut into profit.

Speaking to analysts during a conference call, Boyd's chief executive acknowledged some short-term impact from the introduction of new table games at the Pennsylvania casinos in July, but maintained that it is premature to make any long-term predictions for Atlantic City.

"We have good marketing plans to blunt that. If revenue falls more than anticipated ... the management team is prepared to react to that," Boyd President Keith Smith said of how Borgata plans to soften the blow of Pennsylvania table games.

Paul Chakmak, Boyd's chief operating officer, said the company is encouraged by a return to business levels and hotel occupancy rates normally associated with the bustling summer season after a slow start.

"All of the trends are going in the right direction. Obviously, we would like them to be going a little faster than they are," Chakmak said.

Borgata, Atlantic City's top-grossing casino, has been one of the few properties in town not seriously harmed by competition from Pennsylvania and tighter consumer spending in the sluggish economy.

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