December 2007 Casino Revenue

Atlantic City, NJ, January 10, 2008 — Casinos revenues fell 5.7 percent in 2007 to $4.92 billion, according to figures released Thursday by the state Casino Control Commission. In the face of competition from slot machines at race tracks in Pennsylvania and New York, slot revenues declined by 8.9 percent to $3.46 billion. Revenue from table games increased by 3 percent to $1.46 billion.

"What happened to the industry in 2007 was clearly the result of new competition and a partial ban on smoking in Atlantic City's casinos,"commission chair Linda M. Kassekert said. "While this is the first year that revenues have decreased, the future for the industry is very bright," she added.

Kassekert noted that there are three major additions to casino hotels under construction right now and plans for four or more massive new casino hotels. "Right now, existing operators and new developers are investing well over $10 billion into new or expanded casino hotels," she said. "That kind of investment shows that the industry and the investment community remain bullish on Atlantic City."

The commission chair said the addition of approximately 2,400 new hotel rooms this year and at least 10,000 more over the next six or seven years will dramatically enhance Atlantic City’s draw as a destination resort.

"Each of these new properties will include shops, restaurants and entertainment venues which will help draw more visitors to Atlantic City and they will also stimulate the development of other new attractions in the region," Kassekert said.

Kassekert noted that another factor for the decline in revenues for the year was the closure of the Sands Hotel Casino in November 2006. When the Sands results are subtracted, she noted that revenue for the remaining 11 casinos was down 2.9 percent compared to 2006.

Casinos paid $393.7 million in taxes on their gross revenues in 2007. That money, 8 percent of gross revenue, goes into the Casino Revenue Fund which pays for programs that benefit qualifying senior citizens and people with disabilities. In addition, the casinos incurred another $61.6 million in reinvestment obligations for the year. They are required to reinvest 1.25 percent of gross revenues in projects approved by the Casino Reinvestment Development Authority.

In December alone, revenues declined by10.6 percent. Slot revenues in December fell 14.4 percent to $251.1 million and table revenues fell 1.4 percent to $120.2 million.

Win, or casino revenue, is the net amount of money won by casinos. It is not profit.

(Detailed data on revenues from each individual casino can be found at the Commission’s web site http://www.njccc.gov/casinos/financia/mthrev/ For more information contact the Office of Communications.)

CASINO WIN AND GROSS REVENUE

DECEMBER 2007

DECEMBER YTD

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