Atlantic City has often been described as the Las Vegas of the East Coast. It is the second most popular casino destination for casino lovers in America. They come here to enjoy the boardwalk and ocean side games and activities during the daytime and gamble in the dazzling casinos at night.
However, in the wake of economic meltdown the revenue of Atlantic City casinos dropped by 7.6 %, to approximately $4.55 billion in the year 2008. This has prompted the casino owner of Atlantic City to adopt measures to cut back on expenses in order to take care of the revenue situation. Most of the casinos have started reducing comps and freebies offered to its average casino players. Total comps offered by the casinos fell by nearly 5%, to $1.55 billion last year.
The casinos are strictly monitoring their cash expenses and are cutting out low-end customers who wager less in the casinos. The effects of economic downturn are reflected in this situation, which continues to become worse. As of January 2009, data shows that the promotional expenditure declined 3.2 %, which is essentially $115.4 million; this is comparing it to the same period as in 2008. The comp data comparison for the month of January in the year 2008 and 2009 of some prominent in Atlantic City are as follows:
Bally’s went from $15 million in expenditures for January 2008 to $11.3 million in this year. Caesars went from $12.4 million in comps to $11.1 million this year; and the Showboat Casino decreased from $9 million in comps to $8 million.
Moreover, slot gaming parlors of neighboring states of Pennsylvania and New York are throwing stiff competition by pulling majority of US casino players to their gaming parlors.