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AC Casinos Suffer Limited Damage from Sandy


2 Nov 2012

Despite bearing the full brunt of Hurricane Sandy, Atlantic City casinos have not been as badly affected as they might have been.

Although there’s no good time for the kind of disruption seen in this area, Sandy could have hit New Jersey at a much worse time for the local casino industry.

According to Fitch Ratings, which issues credit ratings of global firms, the region is currently in a seasonal lull in trade, which means the loss of profits caused by casino closures in Atlantic City and other mid-Atlantic locations should be minimal.

The impact of the storm should be reduced further by quick work to get venues reopened, as Fitch says many casino operators are being very proactive about getting back to business.

With this in mind, the fourth-quarter performance of casinos in the area could prove difficult to forecast.

Despite the efforts to return to normal, Fitch anticipates downward pressure on earnings due to customer sentiment in the affected surrounding areas.

“Fitch also believes that regular customers in the region may be preoccupied for some time with storm recovery, potentially lowering visitation volumes for a few weeks,” the ratings agency adds.

However, as the clean-up operation continues in the mid-Atlantic region, it seems that the timing of Hurricane Sandy may have helped to make sure that the local casino industry was not hit as badly as it might have been – a fact that could help operators to recover more quickly.