Atlantic City casinos reported profits totaling $140.5 million for the first quarter of 2024, marking a nearly 10% year-over-year decline. This decrease occurred despite a 2% rise in net revenue to $740.1 million, as ongoing inflation pushed operational costs higher.
James Plousis, Chair of the New Jersey Casino Control Commission, attributed the profit contraction to increased labor and goods costs impacting casino operations.
Of the nine casinos, seven remained profitable, with Resorts and Bally’s being the exceptions. Bally’s reported a $2.5 million loss, while Resorts posted a $1.2 million operating loss. However, Resorts Digital’s $7.7 million profit partially mitigated the overall loss.
Leading Casinos’ Performance
- Borgata: Maintained its position as the most profitable casino with $51.7 million, though this was a 10% decrease from Q1 2023.
- Hard Rock: Saw an 18% profit increase, earning $26.2 million.
- Ocean: Profits rose 1% to nearly $24 million.
Other notable performances included Harrah’s at $16.9 million (down 12%), Tropicana at $12.5 million (down 25%), Caesars at $10.6 million (down 7%), and Golden Nugget at $2.3 million (down 52%). Caesars Interactive Entertainment reported a 6% increase in profits, totaling $7.2 million.
As of March 31, Atlantic City casinos offered 15,514 hotel rooms, with an occupancy rate of 64.8% at an average nightly rate of $164. Pre-pandemic, occupancy was slightly higher at 72.6% with a lower nightly rate of $126.
Future Outlook
Atlantic City casinos are anticipating a busy summer season. Bally’s is celebrating its 45th anniversary with a major property overhaul. Borgata has upgraded its Long Bar, and Caesars is opening Buddy’s Boardwalk Empire at Harrah’s. Golden Nugget is renovating rooms, and Resorts has revamped its outdoor LandShark Bar & Grill. Hard Rock and Ocean have invested in beach restorations.
James Plousis noted that ongoing investments in new amenities are attracting more visitors and allowing higher room rates. He remains optimistic about a financial turnaround, emphasizing the positive impact of strong market competition and increased in-person visitation.
In 2023, despite a 3% revenue increase, overall casino profits fell nearly 2%, with only Borgata, Ocean, and Bally’s reporting profit gains. The focus now shifts to capitalizing on the upcoming peak season to reverse this trend.
