The second quarter of the year was profitable for all casinos in Atlantic City. However, compared to the year before, in total, they generated 20.5% less revenue than in 2022.
Revenue decreased:
Only three casinos and one online entity, of 9 at all in Atlantic City, succeeded in achieving a higher profit than in 2019, before the COVID-19 pandemic.
The New Jersey Division of Gaming Enforcement released the Q2 results, and according to it, the gross operating profit was slightly less than $146 million, while in the same period last year, it was 20.5% higher. In the same quarter of 2019, the profit was $159 million.
Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, which studies the gambling industry in Atlantic City, thinks that among the reasons that lie behind the smaller profit in Q2 is also new contracts that increased the salaries of casino workers.
She said: “Given the increases in labor expenses that did not exist prior to July 2022 and increases in operational expenses overall, this decline is not unexpected.”
James Plousis, a Chairman of the New Jersey Casino Control Commission, is optimistic about the future of the casinos since all of them were profitable despite the changes. He stated that the number of casino employees has increased by about 1.000 since last year.
Casinos’ results:
The most profitable casino was Hard Rock, which earned $30.4 million in Q2, but it is still less than in the year before. The second is Tropicana, which achieved almost $25 million, but still 18% less than in 2022, and the third place goes to the Ocean casino, which had a profit of almost $24 million. Ocean’s profit increased almost 54% compared to last year.
These casinos’ earnings increased compared to the same quarter in 2019.
Harrah’s earned more than $18 million, and the decrease was 15.5%, while Caesars earned $15.3 million, with an increase of 8.3%. Borgata was down 72%, with earnings of $12.3.
Golden Nugget’s results were a bit harder to track since the casino kept its online and land-based operations separate, but the casino’s profit was $7.6 million, which was 16% less than in 2022.
Resorts also struggled, with a decrease of 44% and a profit of $3.4 million, and the online department Resorts Digital earned $1.1 million, with a decrease of 35%.
Bally’s profit was $1.8 million, which means that the company recovered from a $3.7 million loss in the same quarter in 2022.
However, the quarter was successful for Caesars Interactive Entertainment NJ since the casino’s results were better than in 2019 when they earned $5 million, and also 14% better than in 2022.
The hotels’ occupancy rate was more than 74%. People were the most interested in Hard Rock, whose occupancy rate was more than 90%. Bally’s had the lowest, just over 65%.