August 23, 2022 Casino, Finance, Results

Atlantic City casino Q2 2022 profits fall by 1%

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However, earnings during the second quarter surpassed pre-pandemic levels.

Atlantic City’s casinos have released their financial reports for the second quarter of 2022. Collectively, the city’s nine casinos and their partners reported a decline in profits for the quarter by close to 1%.

According to New Jersey’s Division of Gaming Enforcement, Atlantic City’s casinos, along with their online affiliates raked in a total of $183.6m in gross operating profit during the months of April, May and June. When compared to last year’s Q2 earnings, gross operating profit fell by nearly $2m.

Though profits were down year-over-year, figures from Q2 2022 blew past 2019’s reported second-quarter earnings by more than $25m.

Borgata grabbed the top spot this quarter in a breakdown of profits by casino in Q2. The casino posted an operating profit of $42.2m, reflecting a 4.6% rise year-over-year. Hard Rock and Tropicana slid into second and third place, reaching $38m and $30.3m respectively.

Profit earnings for Hard Rock rose by 46% when compared to last year’s corresponding quarter, while Tropicana’s operating profit rose by 8.2%.

New Jersey Casino Control Commission Chairman James Plousis said: “Although gross operating profit figures were relatively flat in the second quarter, during that time period the casino hotels were making important and significant investments in their facilities to create new and exciting experiences for their guests to enjoy.

“Those capital investments are critical to ensure the long-term appeal of Atlantic City as a resort destination.”

Lloyd Levenson Institute at Stockton University Director Jane Bokunewicz spoke about current operating profits compared to those before the pandemic. She said that “casino operators have continued to leverage lessons learned during the pandemic to balance expenses with consumer demand.”

She added that the industry has adapted to current economic trends, reflected by higher operating profits when compared to those in 2019.

Bokunewicz commented: “Amid uncertainties in the market, from the continued influence of public health concerns to inflation and raised fuel prices, the industry as a whole has learned to adapt and operate profitably.”

The Lloyd Levenson Institute at Stockton University studies the Atlantic City gambling market.

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