Atlantic City Casinos Report Decline in Profits Despite Continued Profitability
atlantic city casinos’ financial performance in Q2
In the second quarter of 2024, Atlantic City casinos and two online-only gambling platforms experienced a 1.3% decline in profits, as highlighted by New Jersey’s gaming regulators. The New Jersey Division of Gaming Enforcement disclosed that these establishments collectively achieved a gross operating profit of $178.4 million, marking a decrease from the same quarter a year prior. Despite this downturn, all nine casinos maintained profitability, although six witnessed lower earnings compared to Q2 in 2023.
individual casino performance
- Borgata led the pack with a remarkable operating profit of $54.3 million, reflecting a 15.5% increase.
- Hard Rock followed closely behind, reporting a 16.3% rise in profits, totaling $35.4 million.
- Conversely, Ocean and Tropicana faced challenges, with Ocean’s profits plummeting over 33% to just under $16 million.
James Plousis, the chairman of the New Jersey Casino Control Commission, indicated that operators continue to grapple with rising costs for goods and services, impacting their bottom lines.
online gambling sector results
The online-only operators displayed mixed outcomes as well. Caesars Interactive Entertainment reported a slight profit decrease, while Resorts Digital experienced a significant profit surge of over 66%. In the first half of 2024, the combined earnings of both land-based and online gambling operations reached $333.7 million, indicating a nearly 5% decrease compared to the previous year.
hotel occupancy and rates in atlantic city
Turning to the hotel sector, the Hard Rock property boasted the highest occupancy rate at nearly 92%, illustrating its popularity among visitors. In stark contrast, the Golden Nugget recorded the lowest occupancy at just over 52%. Additionally, the Ocean casino charged the highest average room rate at $268.47 per night, sharply differing from the Golden Nugget’s more modest $108.14 rate.
In summary, while Atlantic City casinos continue to show resilience, the challenges posed by rising operational costs and fluctuating profits illustrate the complexities of the current gambling landscape in the region.
