Ocean view: Atlantic City casinos see revenue rise but profit drop for Q1

May 23, 2023
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Gross operating profit has declined 14.8% year-on-year, but NJCCC Chairman is optimistic about growth.

Atlantic City has released its nine casinos’ and overall industry figures for Q1 of this financial year. The gaming destination has seen its gross operating profit decline 14.8% year-on-year, though revenue has increased 4.6%.

Collectively, Atlantic City’s nine properties posted gross operating profit of $135.4m, with only one venue, Resorts Casino, reporting a loss. The most profitable was Ocean Resort, with $23.6m in operating profit (see graph further down).

However, the Borgata leads the table when it comes to revenue, generating $186.9m. Resorts Casino also made the least revenue, a total of $35.4m. Bally’s managed to recover from a $6.8m loss in Q1 of 2022 to reach $88,000 in operating profit this quarter.

Mark Giannantonio, President of Resorts Casino, and of the Casino Association of New Jersey, said that lower earnings could be due to inflation. Resorts made $527,000 in profit during Q1 of 2022, in comparison to this year’s $284,000 loss.

James Plousis, Chairman of the New Jersey Casino Control Commission, commented that Atlantic City casinos have incurred higher costs in 2023, due to paying higher wages as a result of new contracts.

He said, “Compared to the first quarter last year, the casino hotels are employing more people and a progressive labor agreement was reached. These steps are emblematic of an industry that is preparing for growth and success.”

Online casino activity was quite different for the two entities within the Garden State, with Resorts Digital up 5.9% to nearly $8m in gross operating profit, while Caesars Interactive Entertainment NJ was down 13.2% to $6.8m.

The overall occupancy rate of hotel rooms for all casinos was 65.2%, a 2.1% rise from Q1 of last year. Hard Rock’s occupancy rate was the highest individually at 84.8%, though Golden Nugget had the lowest average room cost of $113 a night. Ocean Resort had the highest average room rate of $212.

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