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Growing competition luring gaming patrons to other states.According to Michael Pollock’s Gaming Industry Observer, a casino trend-watcher in Linwood, the slot “handle” — a metric used to measure gaming activity — in Pennsylvania generated $2.1 billion in December, marking the first time its casinos surpassing Atlantic City’s handle activity, which totaled $2 billion for the month.

Joseph A. Corbo, president of the Casino Association of New Jersey, said while competition from Pennsylvania is evident, Atlantic City is evolving into an upscale tourist destination with entertainment and other nongaming offerings. “We are confident that these attractions will continue to positively differentiate our casinos from the one-dimensional convenience gaming offered in Pennsylvania,” he said via e-mail.

Joe Weinert, editor of Gaming Industry Observer, said via e-mail his publication’s report includes simulcasting revenue. Weinert said the report includes results from state-regulated slots in Pennsylvania casinos at nine separate locations, compared with New Jersey, which has all 11 casinos located in Atlantic City.

But Daniel Heneghan, a public information officer with the New Jersey Casino Control Commission, said that report follows a different metric than his agency, which considers revenue only.

“Handle is a measure of gaming activity,” he said. The handle includes re-betting by patrons, he said; the commission measures only the money left when betting is complete.

According to the commission’s latest report, Atlantic City slots generated $179 million revenue in December, wrapping up a dismal 2009 performance. Henegham compared that with $189 million generated by Pennsylvania slots in December.

Weinert said his publication shows $155.6 million in net slot revenue in New Jersey for December and $155 million in net slot revenue for Pennsylvania after promo credits are deducted from both states.

But further decline may be on the way for Atlantic City’s slot machines, according to Weinert. “We have forecast a 4.3 percent revenue decline for Atlantic City in 2010,” he said; at the same time, the publication predicts a 17 percent increase in revenue for the 11 casinos in Pennsylvania, New York and Delaware located 150 miles of Atlantic City.

Frank Catania, president of Catania Gaming Consultants, in North Haledon, said Atlantic City must look for ways to lure back patrons as competition for gambling increases in the region.

“Pennsylvania will be basically running the same kind of casinos as Atlantic City in March, when they get table games,” he said. “We have to find other means of getting customers to Atlantic City.”

He said the introduction of intrastate online gambling may help New Jersey’s casinos. “We’ve got to do something different,” he said. “Now every state is looking at [gambling] to fill their deficits.”

E-mail João-Pierre Ruth at [email protected]

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