Oct. 11 (Bloomberg) -- Atlantic City casino gambling revenue fell 0.6 percent in September as competition from casinos and slots in neighboring states continued to attract gamblers.

Betting returns shrank to $294.7 million from a year earlier, New Jersey’s Division of Gaming Enforcement said today on its website. Slot machine revenue at the 11 casinos declined 1.9 percent and table game winnings rose 2.7 percent.

New Jersey Governor Chris Christie this year offered greater state assistance in return for overhauled regulations to help limit losses in Atlantic City. He created a state-run tourism district in the area encompassing the casinos and the Boardwalk and redirected gaming tax revenue to improve the city.

Gambling in the second-biggest U.S. casino market after Las Vegas fell to $3.57 billion in 2010 from a peak of $5.2 billion in 2006.

For the nine months through September, revenue in Atlantic City slid 7.8 percent to $2.6 billion from a year earlier.

--Editors: Robin Ajello, Kevin Orland

To contact the reporter on this story: Ksenia Galouchko in New York at kgalouchko1@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net