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Borgata Results Still Hot

ATLANTIC CITY, New Jersey – As reported by the Press of Atlantic City: "Borgata Hotel Casino & Spa sizzled this summer, but other casinos were not so hot.

"Blockbuster business at Borgata paced the gaming industry to solid - although hardly spectacular - results in the critical third quarter.

"Overall, gross operating profits for the city's 12 casinos rose 9.2 percent in the quarter to $396.2 million, according to figures released Thursday by the state Casino Control Commission.

"Net revenues climbed 4.4 percent in the quarter to $1.3 billion. Seven casinos posted an increase in net revenue, while five others suffered a decline for the third quarter, which covers the summer months and traditionally is the strongest period for the tourist-dependent resort city.

"Industry leader Borgata saw third-quarter gross operating profits soar to $65.2 million, more than double the same period last year. Borgata's cash flow is effectively growing at a rate more than 10 times the industry average.

"…Borgata easily outdistanced all its competitors in net revenue and gross operating profits for the third quarter. It also raked in more nongaming revenue than any other casino, posting strong gains in such areas as hotel business and food and beverage sales.

"…While gross operating profits were healthy overall, results were depressed somewhat by a 27.3 percent increase in the amount that casinos paid for promotional expenses in the third quarter. Promotional expenses and allowances reflect the complimentary hotel rooms and other freebies showered on gamblers.

"…Joining Borgata with double-digit increases in gross operating profits for the quarter were Sands Casino Hotel, Resorts Atlantic City, Showboat Casino Hotel and Trump Marina Hotel Casino. Net revenue at the Sands, however, dipped nearly 3 percent for the quarter.

"…Caesars Atlantic City, Harrah's Atlantic City and the Atlantic City Hilton Casino Resort all were down in gross operating profits by single-digit margins…"

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