In 2024, Atlantic City’s casino sector confronted significant economic challenges that resulted in declines in both revenue and profits. Data from the New Jersey Division of Gaming Enforcement indicate that the casinos experienced a slight drop in net revenue and a more substantial fall in gross operating profits over the year. During the fourth quarter of 2024, the net revenue for the casinos was reported at $768.9 million, which was a decrease of 1.7% from the previous year’s same quarter. The gross operating profit during this quarter also saw a decline, falling 10.8% to $132.5 million compared to the same period in 2023.

Analysis of financial performance and market trends:

Over the entire year, Atlantic City’s casino industry reported net revenues totaling $3.31 billion, a marginal decline of 0.5% from 2023. According to NJDGE, the annual gross operating profit for 2024 was $709.1 million, representing a 9.2% decrease from the previous year. These figures reflect the ongoing difficulties faced by the sector, which has been struggling to return to the pre-pandemic levels of business and profitability.

The financial downturn is evident across the board with only two out of the nine casinos, Caesars and Hard Rock, reporting an increase in their operating profits. This contrast in performance underscores the uneven impact of economic pressures within the industry. The gross operating profits are indicative of earnings before interest, taxes, depreciation, and amortization, and they highlight the core financial health of these establishments.

Moreover, the hotel occupancy rates shed light on the broader challenges in the sector. By the end of December 2024, the occupancy rate across casino hotels was 65.6%, a slight decrease from the previous year. The annual occupancy rate stood at 72%, marking a consistent decline that suggests a reduction in visitor traffic and overnight stays.

Expert insights on market dynamics and future outlook:

Experts like Jane Bokunewicz from the Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism at Stockton University have analyzed these trends. As The Press of Atlantic City reports, Bokunewicz noted that “Increases in expenses and drags on consumer demand, initially observed in the third quarter and continuing into the fourth, likely resulted in the disproportionate decline of 9.2% in year-over-year gross operating profit for Atlantic City’s casino operators.”

Despite the prevailing economic gloom, there are signs of potential recovery. Mark Giannantonio, President of the Casino Association of New Jersey and Resorts Casino Hotel, remains optimistic about the future. He stated, “Clearly the results are extremely disappointing, but not unexpected. These are challenging times, but we believe, working collaboratively with state and local stakeholders, we could start to see a turnaround and transform Atlantic City once again into a leading beachfront resort destination.”

Giannantonio further highlighted plans for revitalizing Atlantic City, particularly through enhancements to the Boardwalk and a strong entertainment lineup for the summer of 2025. These initiatives are expected to attract more leisure travelers and potentially kick-start a new era of prosperity for the city’s casino industry.