Borgata Q3 revenue up nearly 5 percent
ATLANTIC CITY (AP) — As three Atlantic City casinos closed over the summer, business got better at the Borgata.
The Borgata's revenue increased by nearly 5 percent in the third quarter of this year, and it increased its share of Atlantic City's gambling market to 24 percent. The casino's revenues were $209.9 million in the quarter, including $6.1 million from its online gambling operation.
The figures were released Thursday by the casino's parent company, Boyd Gaming.
Company president Keith Smith says earnings before interest, taxes and other charges were $56.9 million in the third quarter, up more than 22 percent from a year ago.
The Borgata benefited from a tax settlement with the city of Atlantic City that contributed $8.1 million to earnings. But even without the tax settlement, earnings increased by 4.7 percent as slot machine and hotel revenue increased.
Smith says the improvements began before the closings of three Atlantic City competitors this summer.
"In September, we began more active efforts to attract some of these customers to our database," Smith said. "We have gained some customers, but we're not going to overspend to do it. We would like to see these properties stay open, but if they close and their customers are available, we'll certainly try to attract them to the Borgata."
Four of Atlantic City's 12 casinos have closed so far this year, including three — the Showboat, Revel and Trump Plaza — in little over two weeks during the summer.
Smith said he hopes Revel does re-open under new owners who have bought it in bankruptcy court, saying more hotel rooms and customers in the market are a positive influence for Atlantic City.
He also said the Borgata's market-leading Internet gambling operation was profitable throughout the third quarter.
Boyd and MGM Resorts each own half the Borgata.
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