Atlantic City’s casino industry opened 2026 with a steep decline in profitability as rising operating expenses continued to weigh on the market despite relatively stable revenue levels.

Financial figures released by the New Jersey Division of Gaming Enforcement and cited by Press of Atlantic City showed the city’s nine casinos generated a combined gross operating profit of $102.8 million during the first quarter of the year, down 22.6% compared with the same period in 2025. Another report placed the total at $104.7 million, reflecting a decline of roughly 23%.

Gross operating profit, a standard measure used throughout Atlantic City’s gaming industry, tracks earnings before interest, taxes, depreciation, amortization, and other related costs.

Only one casino operator reported higher profits during the quarter, while two casinos operated at a loss.

James Plousis, chairman of the New Jersey Casino Control Commission, said operators faced mounting financial pressure during the opening months of the year.

“Atlantic City reported flat net revenue in the first quarter, a reflection of ongoing general economic pressure. The casino hotels also encountered their highest first quarter costs and expenses in nine years, significantly constraining reported gross operating profits,” Plousis said.

Higher Expenses Cut Into Casino Earnings

Although overall business activity remained relatively steady, casino operators struggled to offset increases in labor costs, energy bills, marketing expenses, and the price of goods and services.

Net revenue across Atlantic City’s nine casinos reached $725.6 million during the quarter. That figure includes income from gambling, hotel stays, restaurants, entertainment venues, and other amenities. Revenue slipped less than 1% from a year earlier, showing that profitability deteriorated faster than customer spending.

Jane Bokunewicz, director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism, said headline revenue totals no longer fully reflect the industry’s underlying challenges.

“Economic pressures, local and global, seem to be catching up with Atlantic City’s casino industry as it reports its third consecutive decline in year-over-year first-quarter gross operating profits, and a lukewarm quarter for net revenue,” she said. She also pointed to intensifying regional competition as casinos spend more heavily on promotions and property improvements in an effort to protect market share.

Atlantic City operators have invested heavily in recent years to improve resorts, gaming floors, restaurants, and entertainment offerings. Plousis said casino companies have spent more than $1.3 billion on their Atlantic City properties over the last five years.

“Over the past five years, casino operators have invested over $1.3 billion in their Atlantic City properties to elevate visitor experiences with first-class gaming, leisure, dining, and entertainment,” he said.

Market Leaders Also Report Lower Profits

Even Atlantic City’s strongest-performing casinos recorded notable profit declines during the quarter. Borgata Hotel Casino & Spa remained the market leader with $39.7 million in gross operating profit, though that total fell 17.6% from a year earlier. Hard Rock Hotel & Casino Atlantic City earned $19.7 million, down nearly 25%, while Ocean Casino Resort posted $18.7 million, a decline of 16.6%.

Harrah’s Resort Atlantic City reported $13.5 million in profit, down more than 13%. Tropicana Atlantic City generated $7.7 million, falling 41.8% year over year. Resorts Casino Hotel recorded a profit of $878,000, a drop of nearly 76%.

Caesars Atlantic City stood out as the only casino to report profit growth. Its first-quarter operating profit climbed 40.2% to nearly $5 million.

Bally’s Atlantic City and Golden Nugget Atlantic City both finished the quarter with operating losses. Bally’s reported a loss of $862,000 after losing $3.2 million during the same period last year. Golden Nugget posted a loss of nearly $1.8 million after recording a $2.8 million profit one year earlier.

The online-only gaming entity Caesars Interactive Entertainment NJ also saw profitability weaken. Its operating profit fell nearly 36% to $1.8 million.

Despite the earnings slowdown, hotel performance showed modest improvement. Citywide casino hotel occupancy increased to 64.6% during the quarter, up from 62.9% one year earlier. The average nightly room rate also rose slightly.

Hard Rock posted the highest occupancy rate at 78.2%, while Golden Nugget recorded the lowest at 43.5%. Ocean Casino Resort reported the highest average nightly room rate at $234.42, while Golden Nugget had the lowest at $101.01.

New Competition Adds Pressure to Atlantic City

Atlantic City casinos are also preparing for increased competition in the northeastern gaming market.

Several new casino developments are planned in New York City, including projects connected to Bally’s and Hard Rock. Resorts World recently expanded operations at Aqueduct Racetrack in Queens by adding live table games.

At the same time, some New Jersey lawmakers are once again discussing whether casino gambling should expand outside Atlantic City.

George Goldhoff, president of the Casino Association of New Jersey and Hard Rock Hotel & Casino Atlantic City, said the industry faces mounting challenges despite continued investment in the market.

“The earnings figures show a mixed and increasingly challenging environment for New Jersey’s casino industry. Hotel occupancy continued to soften, reflecting ongoing pressures on visitation. Atlantic City is facing growing regional competition, broader economic headwinds, and the prospect of additional gaming expansion in the New York City market,” Goldhoff said.

“While the industry demonstrates resilience, these figures underscore the need for operational efficiency and bolder strategies to reverse declining occupancy trends,” he added.

Casino revenue figures for April offered some optimism after in-person gaming revenue reached $235.6 million, marking Atlantic City’s strongest April performance in 12 years. Analysts, however, warned that rising gas prices and poor weather during Memorial Day weekend could affect second-quarter tourism activity.