ATLANTIC CITY — The labor unrest that led to the closing of Trump Taj Mahal Casino Resort contributed to a 10.6 percent decrease in the operating profits at the city’s casinos during the third quarter, according to state figures released Tuesday.
Profits at the properties from July through September totaled $212.3 million, down from $237.5 million during the same period in 2015, according to figures released by the state Division of Gaming Enforcement. During the third quarter, the Taj Mahal lost more than $5.5 million.
Unite Here Local 54 members went on strike July 1 after failing to come to a contract agreement with management. The Taj Mahal closed Oct. 10 after management accused union members of preventing a “path to profitability.” The closing left more than 2,800 unemployed.
The combination of the labor issues at Taj Mahal and “wage inflation pressures” at the Caesar’s Entertainment’s three properties lead to the overall reduction in profits, according to Colin Mansfield, a casino analyst at Fitch Ratings.
“Those two issues played a huge role,” Mansfield said of the reduction in profits.
Caesar owns Bally’s Atlantic City, Harrah’s Atlantic City and Caesar’s Atlantic City. Bally’s saw a 22 percent reduction in profits; Harrah’s had a 10.8 percent drop in profits. While Caesar’s saw its profits drop by 9.4 percent.
Despite the declining profits, revenue at the city’s eight casino properties was up less than a percent in the third quarter over last year, according to state figures released Tuesday.
Total revenue at the properties through September was $2.7 billion, compared to $2.6 billion during the same period last year.
“We see the market right around here,” Mansfield said. “Atlantic City is a stable market right and we don’t see that changing until at 2017 when new casinos come online in upstate New York.”