Does Atlantic City Have Too Many Casinos?
Atlantic City's casinos certainly look like they're doing well, reporting third-quarter operating profits that jumped 12.5% from last year, for a collective profit of $239 million. Helped by two new casinos that opened last year, the New Jersey seaside resort looks like it is doing better than it has in years.
Yet looks can be deceiving. Although all nine casinos were profitable for the period, only six saw their operating profits increase, and year-to-date profits are down 4.5%. While the casinos appear to be getting healthier, Atlantic City isn't out of the woods yet. It's been down this road before, and the end result has been ugly.
Atlantic City, New Jersey. Image source: Casino Reinvestment Development Authority.
Source Fool.com
