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Atlantic City Casino Win Up 1.3% in July

7 August 2002

ATLANTIC CITY, New Jersey – As reported by the Press of Atlantic City: "The casino industry's post-Sept. 11 momentum may be petering out.

"The city's 12 casinos won $419.8 million from gamblers last month, a 1.3 percent increase over a weak July last year, according to unofficial figures obtained by The Press of Atlantic City.

"The amount is the second-largest monthly gross for the industry, trailing only the $429.3 million reported in July 2000.

"Last month marked the industry's ninth straight month of revenue increases compared to the year-earlier results, but also the fourth straight month of declining increases.

"Investors in casino stocks that rely heavily on Atlantic City results, however, shouldn't read too much into the monthly revenue numbers, according to stock-trading experts.

"…Bill Lerner, a casino-stock analyst for Prudential Securities in New York, said Americans' increasing comfort with air travel since Sept. 11 and stock-market jitters could be affecting casino business here.

"Still, he said, casino stocks are generally defensive, meaning they're likely to fare better than others during a weak market. Over the last two months, the Dow Jones Casino Index has declined 12 percent compared to 17 percent for the Dow Jones Industrial Index.

"…Trump Hotels & Casino Resorts Inc. fared best last month among the big three casino companies here. July revenue at its three casinos rose a combined 6.1 percent.

"Harrah's Entertainment Inc., benefiting from the hotel and casino expansions at Harrah's Atlantic City, reported a 5.9 percent revenue increase from its two casinos here.

"…The best revenue growth in July belonged to a casino with no public stock: Resorts Atlantic City, owned by private realty investor Colony Capital LLC. Revenue at Resorts increased 12.9 percent to $26.3 million.

"Revenue at Sands, owned by thinly traded GB Holdings Inc., declined 23.8 percent because the casino has eliminated most of its table games. It installed more than 400 new slot machines in their place, but slot revenue grew only 0.6 percent for the month.

"…Citywide simulcasting revenue for July was $1.1 million, up 1.1 percent…"

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