When it rains, it pours.
For Atlantic City, the torrent of bad news just keeps coming.
The seaside resort's 11 casinos had their biggest-ever monthly revenue decline last month, down 18.7 percent, to $302 million.
And, Atlantic City's full-year gambling revenue for 2008 dipped under $5 billion for the first time since 2005, when that milestone was reached after 27 years of steady growth.
The resort's casinos generated $4.6 billion last year, down 7.6 percent from 2007.
"Last year was a very challenging one for Atlantic City's casinos," said Linda M. Kassekert, chairwoman of the New Jersey Casino Control Commission, which released the figures today. "While the economic problems that face this nation took their toll on casinos in 2008, the industry was also hurt by growing competition in neighboring states and a partial ban on smoking in casinos."
All 11 casinos reported revenue declines last month, with Harrah's Resort reporting the smallest at 6.2 percent. The other 10 gambling houses had double-digit declines, ranging from 10.4 percent at the Borgata, to 36.1 percent at Atlantic City Hilton.
And with the exception of Harrah's Resort, all the casinos had year-to-date revenue declines for 2008, compared to 2007.
Kassekert said, "When the economy starts to grow and consumer confidence increases, the outlook for the casino industry here will improve as well."
While the economy may improve eventually, one thorn that will remain in Atlantic City's side is the expanding gaming market in Pennsylvania which shows no sign of slowing down.
The seven operating slots parlors in Pennsylvania generated $121 million last month, and $1.6 billion in 2008. Much of their business is from former Atlantic City slots customers. Pennsylvania casinos do not offer dealer-staffed table games.
A particularly troubling sign for Atlantic City was that today's revenue numbers showed across-the-board decreases.
In December alone, slot revenue declined 18.5 percent, to $204.7 million, while revenue from table games fell 19.1 percent, to $97.3 million.