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AC Casinos Lose Big in Q1

ATLANTIC CITY-A report from the New Jersey Casino Control Commission shows that revenues at the city's casinos fell dramatically in the first quarter from a year ago.

By Maria Wood | Updated on May 21, 2009

ATLANTIC CITY-The city’s casinos saw a 38% drop in gross operating profits in Q1, according to the New Jersey Casino Control Commission. Compared to Q1 ’08, when gross operating profits reached $243.8 million, GOP in the first three months of this year came in at $151.2 million. Meanwhile, net revenues declined 16.2% to $925.2 million during the same timeframe.

Gross operating profits are defined as earnings before interest, taxes, depreciation, amortization and charges from affiliates. After all of those other charges, the industry racked up a net loss of $94.7 million in Q1 versus a net loss of $32.6 million a year earlier.

Casino occupancy also fell. Even though the number of occupied room nights in casino hotels rose by slightly more than 6,000 to just under 1.2 million, the addition of more than 2,100 rooms compared to a year ago pushed down occupancy to 75.3% from 86.3% in the first quarter of last year.

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