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“We expect the taxes [on that property] to go down,” city Finance Director Laura Sitrin said. The city prepared for the annual revenue loss by making some adjustments in its general revenue budget of $97 million, which the City Council approved for the fiscal year that began July 1, Sitrin said. The capital fund for projects and the road and maintenance fund were reduced, she said. In addition, the city increased its abatement fund from $1 million to $1.2 million to cover shortfalls. This fund covers tax abatements and exemptions people receive during the fiscal year, but can be used to make up other lost tax revenues.
For the original version including any supplementary images or video, visit http://www.providencejournal.com/news/20180823/newport-grand-closing-soon-city-facing-loss-of-casino-revenues
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Gross operating profit reflects earnings before interest, taxes, depreciation, and other charges and is a widely-accepted measure of profitability in the Atlantic City gambling industry. The numbers were closely watched in the industry because they were the last quarterly earnings that were largely free of the impact of the two new casinos that reopened in Atlantic City this year. Hard Rock and the Ocean Resort Casino both opened on June 27, and were minimally reflected in this quarter's earnings. "These numbers are an improvement from the first quarter and that is a positive sign in light of the new competition that was entering the market," said James Plousis, chairman of the New Jersey Casino Control Commission. "I remain optimistic that the addition of sports betting, new amenities and entertainment will continue to expand the industry." Harrah's profit of $31.5 million was up 20.2 percent from the second quarter of 2017; Caesars profit of $24.6 million was down 4.6 percent, and the Golden Nugget's $14.2 million profit was up nearly 32 percent. Bally's profit of $11.7 million was up 2.7 percent and Tropicana's profit of $25.2 million was up over 34 percent. Among internet-only entities, Caesars Interactive NJ reported an operating profit of $2.9 million, up more than 40 percent from a year ago. Resorts Digital reported an operating profit of $391,000, which was down from an operating profit of $1.3 million a year ago. Atlantic City's two newly reopened casinos reported their earnings for the last three days of the quarter. The Ocean Resort Casino, the former Revel property, reported a gross operating profit of $860,000, while Hard Rock, the former Trump Taj Mahal, reported an operating loss of $2.1 million. This quarter's earnings numbers were affected by a change in financial reporting requirements.
For the original version including any supplementary images or video, visit https://www.nj.com/atlantic/index.ssf/2018/08/atlantic_city_casino_earnings_up_16_percent_in_sec.html
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