Atlantic City casinos posted the second-highest monthly win tally ever in August, but Harrah's properties missed the party as they faced intense competition from the recent expansion at the hip Borgata Casino.

Casinos in the New Jersey boardwalk city rebounded from a three-day government shutdown in July to post a $494.4 million win tally in August, up 4.5% from the year earlier, according to the state's Casino Control Commission.

For the first eight months of the year, casinos won $3.5 billion, up 4.1% from the same period in 2005.

The Borgata casino, which is jointly owned by MGM Mirage and Boyd Gaming ,led the market's growth and grabbed more gambling dollars than any other casino in the city.

The property saw its win tally rise 14% to $72.9M from $64 million a year earlier. The trendy casino opened its $200 million expansion in July and now boasts the largest poker room in the city, taking the crown from Trump's Taj Mahal property.

Harrah's properties posted a combined 1.4% growth in August, below the 5% to 6% forecast by Calyon Securities analyst Smedes Rose. Borgata's expansion is forcing Harrah's to step up its promotional activity, which hurts margins, Rose said in a research report Tuesday.

Gaming wins rose 7% at Harrah's Caesar's property and 2% at Bally's, but results were flat at Harrah's Marina.

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