Atlantic City Casino Revenue Drop Nearly 10% in Early 2024
Atlantic City’s casinos saw nearly a 10% decrease in Revenue at the start of this year.
Gamblers play cards at the Ocean Casino Resort in Atlantic City, N.J., on Tuesday, May 21, 2024. On Wednesday, May 22, 2024, New Jersey gambling regulators released data showing that the gross operating profit of Atlantic City’s nine casinos declined by almost 10% in the first quarter of the year. (AP Photo/Wayne Parry)
ATLANTIC CITY, N.J. (AP) — The combined Revenue of Atlantic City’s casinos fell by nearly 10% in the first quarter of 2024, with only two of the nine casinos being more profitable than they were a year ago, according to figures released Wednesday by state gambling regulators.
The nine casinos reported a collective gross operating profit of $140.4 million for the first three months of 2024, a 9.6% drop from the same period in 2023.
Including internet-only entities, the collective revenue was $155.4 million, down 8.7% from the previous year.
Gross operating profit, a widely accepted measure of profitability in the Atlantic City gambling industry, reflects earnings before interest, taxes, depreciation, and other charges.
Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, which studies the Atlantic City gambling market, pointed to several factors contributing to the lower profits. These include increased business costs, inflation, and a possible shift in revenue to operations like lodging and food and beverage that traditionally have narrower profit margins.
James Plousis, chairman of the New Jersey Casino Control Commission, echoed these points, noting labor contracts that significantly raised wages for casino workers and the increased cost of goods casinos must purchase.
Two casinos posted operating losses in the first quarter: Bally’s lost $2.5 million compared to an $88,000 profit a year ago, and Resorts reported a $1.2 million loss, compared to a $284,000 loss a year ago.
On the positive side, Hard Rock saw an 18.3% increase in gross operating profit to $26.2 million, and Ocean experienced a 1.2% increase to $24 million.
Other casinos experienced declines: Golden Nugget’s gross operating profit dropped 51.7% to $2.3 million; Tropicana fell 25.4% to $12.5 million; Harrah’s decreased 12.3% to $16.9 million; Borgata dropped 10.1% to $51.7 million, and Caesars decreased 7% to $10.5 million.
Among internet-only entities, Caesars Interactive Entertainment NJ increased 5.9% to $7.2 million, while Resorts Digital dropped 3.2% to $7.7 million.
In the first quarter, Hard Rock had the highest hotel occupancy at nearly 81%, while Golden Nugget had the lowest at 47.2%.
Ocean had the highest average hotel room price at $224.31, whereas Golden Nugget had the least expensive at $93.68.
Bokunewicz noted that Atlantic City’s casinos sold 10,000 more room nights in the first three months of 2024 compared to the same period in 2023, despite an almost $8 year-over-year increase in the average daily room rate.
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