Atlantic City casino operating profits decrease nearly 10% year-over-year for Q1 2024
Total net revenue from all casinos managed to increase 1.9% from the comparable quarter to $740.2m.
The New Jersey Division of Gaming Enforcement has reported the Q1 2024 financial results for all Atlantic City casinos. While total net revenue was reported at $740.2m for the first quarter of 2024 as compared to $726.3m for Q1 2023, the state saw a decrease in gross operating profits year-over-year. Operating profits for the first quarter of 2024 were $140.5m, a 9.6% decrease from the comparable quarter.
Director of the Lloyd Levenson Institute at Stockton University, Jane Bokunewicz, attempted to explain the decrease by citing “an increase in the cost of doing business, inflation and a potential shift in revenue mix to operations like lodging and food and beverage that traditionally have narrower profit margins.”
The institute in which Bokunewicz oversees studies the gambling market in Atlantic City.
Only two casinos in the city reported positive movement when it came to gross operating profit out of the nine counted in the report. Hard Rock Hotel and Casino saw the biggest increase at 18.3%, generating $26.2m for Q1 2024 while Ocean Casino Resort reported a gross operating profit of $23.9m, an increase of 1.2%.
The Golden Nugget Hotel in Atlantic City witnessed the largest decrease in operating profits, as its $2.3m figure reported for Q1 2024 represented a 51.7% drop from the comparable quarter. Tropicana Hotel operating profits decreased from $16.8m for Q1 2023 to $12.5m for the first quarter of 2024 while Harrah’s decreased 12.3% year-over-year to $16.9m for Q1 2024.
Multiple casinos managed to report increases in net profit, however, including Caesars which saw a 3.8% increase from the $57.4m figure reported for Q1 2023. Ocean Casino Resort made $116.6m in net profit for Q1 2024 as compared to the $106.1m figure for the first quarter of 2023. Hard Rock Hotel and Casino grew by 7%, reporting $133.4m in net profit for Q1 2024.
Recently, the Lloyd D. Levenson Institute released its first ever 2023 Impact: Atlantic City Casino Industry report in collaboration with the Casino Association of New Jersey. The report stated how the casino industry in Atlantic City was able to generate $467m in gross gaming tax revenue in 2023, representing a nearly 12% increase over the industry’s last peak in gross gaming tax revenue in 2006.
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