Poker Contributing More to AC’s Pot

While it is still a small percentage compared to other games, poker revenues for Atlantic City casinos increased to $67 million in 2005, up from $37.1 million in 2003. For comparison, slot machines made up $3.7 billion of the $5 billion in total revenue, a whopping 74%, compare to the 1.3% of revenues that poker contributes.

Even though some casinos, such as the Trump Taj Mahal and the Tropicana, have very large poker rooms (76 and 48 tables, respectively), two Atlantic City casinos have yet to deal a hand of the ever-popular card game. The Trump Marina and Trump Plaza have nary a single poker table, most likely because of the tiny profits the game generates. After all, the players do not compete against the house. The house simply gets a small piece of the action.

So why are most casinos in Atlantic City trying to attract more poker players? Many see the game as sort of a “loss leader.” While the casinos barely make a profit, or even lose money on the game, poker attracts players who will also spend their money in the casino’s shops, restaurants, hotel rooms, and other games. The players’ significant others may also come along, spending money in other areas of the casino while the poker player is busy in a game.

On top of the direct and indirect revenue streams associated with poker, the game has been a strong marketing tool for the casinos. Major tournaments in Atlantic City have brought the casinos welcomed exposure. This month alone, the Borgata has hosted a World Poker Tour event and Harrah’s is home to a World Series of Poker circuit event.

Originally published February 6, 2006