The Atlantic City’s casinos recorded a fall in revenue during Q3 this year compared to the same period last year.
The revenue decrease:
According to the gambling regulators in New Jersey, in total, both casinos and online entities earned $281.2 million, which is 7.5% less than in the third quarter of last year.
The Division of Gaming Enforcement announced that the profit is higher than it was in 2019, before the collective drop down because of the COVID-19 pandemic; the main reason behind this was the opening of two new casinos in New Jersey, as well as changing the accounting in one casino.
Jane Bokunewicz, the director of the Lloyd Levenson Institute at Stockton University, who is especially interested in Atlantic City casinos, commented on that: “In keeping with the experiences of many resort communities along the New Jersey shore, Atlantic City saw a bit of a cooling off in summer 2023 compared to the pent-up post-pandemic energy seen in 2021 and 2022. That said, it did outperform pre-pandemic 2019 for both net revenue and gross operating profit, suggesting that this could be part of a cycle of stabilization.”
James Plousis, New Jersey Casino Control Commission’s chairman, highlighted the fact that it was the third-successful quarter in terms of revenue in Atlantic City since 2008, despite the downgrade four casinos’ parent companies experienced due to cybersecurity issues.
The results of the specific casinos:
Borgata earned $73.5 million, which is 1.7% percent less than in 2022. However, the casino changed its rent expenses policy, which increased the gross profit.
The Ocean Casino Resort had a good quarter, though – the profit was $43 million, which is an increase of more than 10% compared to the same period in 2022.
Hard Rock’s revenue decreased by 1% compared to the previous year, and the company’s gross operating profit was $44.3 million.
The Tropicana casino earned $36.7 million, which was 11.5% less than the year before. Harrah has a bigger decrease – the revenue was $30 million, or 13% less than in 2022.
Caesars recorded a huge decrease of nearly 18% with a $21.1 million profit, while Golden Nugget’s decrease was nearly 4%, and the profit was $11 million.
Bally’s and Resorts had a huge decrease – Bally’s profit was $7.3 million, more than 32% less, and Resorts earned $7.2 million, which is almost 43% less than in 2022.
When it comes to online entities, Caesars Interactive Entertainment NJ earned $5.1 million, or 18% less than in 2022, while Resorts Digital earned about $1.6 million, which is almost 50% less than in the same quarter last year.
As AP News reports, tntil October, the total revenue in Atlantic City was $632.1 million, and a decrease of 4.2% was recorded.
When it comes to the hotels within the casinos, Hard Rock sold most of the rooms. In the third quarter, the occupancy rate was 96%, and the Golden Nugget’s rate was the smallest, just over 67%.