The Borgata Hotel Casino and Spa’s fortunes are still being blighted by blizzards. The December snowstorms had cost the casino about $5 million worth if business. That is going to seem insignificant if the prospects for February figures are anything to go by.
A hotel executive said the organization is expecting another loss of $5 million in the first quarter owing to weather conditions. Unofficial estimates peg the loss at a much higher level. Borgata already has a good chunk of Atlantic City’s gaming market, and expects this to stand them in good stead when the weather and economy clear up. 4Q revenues had fallen by about $8 million on y-o-y basis, while gross operating profits remained flat at $36 million.
Parent company Boyd Gaming Corp’s CEO, Keith Smith noted that inclement weather had also kept away regular gaming visitors from Atlantic City. He also expressed concern at the possibility of video lottery terminals at Meadowlands and table games in nearby Pennsylvania. Governor Chris Christie had earlier made his interest and support for such a move known. Such a development does not bode well for establishments like Borgata since it will increase the competition for the Atlantic City marketplace, as well as the chances of cannibalization.
The Borgata Hotel Casino and Spa’s fortunes are still being blighted by blizzards. The December snowstorms had cost the casino about $5 million worth of business. That is going to seem insignificant if the prospects for February figures are anything to go by. If it gets any worse, the dealers may be forced to watch WSOP at home and practice for work.
Boyd owns 50% of Borgata, and MGM Mirage Co. owns the other half. It is rumored that MGM is looking to sell its stake following allegations about the suitability of its partner in Macau, Pansy Ho. According to analyst speculation, Boyd is the most likely buyer in such a situation.