Atlantic City Casino Profits Down 9.6 Percent for Q1 2024
$6,000 Welcome Bonus
The New Jersey Division of Gaming Enforcement released new numbers on Wednesday showing that Atlantic City casinos are struggling to reach the same profitability levels they enjoyed in 2023.
The figures, which covered the first quarter of 2024, showed that the nine Atlantic City casinos made a gross operating profit of $140.4 million from January through March.
Seven Atlantic City Casinos See Profits Decline
That number is down 9.6 percent compared to the same period in 2023. And while including the internet-only companies helps a bit, they only bring the total profits up to $155.4 million, still down 8.7 percent year-over-year. Overall, two casinos saw increased profits, while the other seven suffered declines.
The biggest overall winner in the quarter was the Borgata, which made $51.7 million, though that was still down 10.1 percent compared to last year. The casino that enjoyed the biggest increase in profits was the Hard Rock, which was up 18.3 percent, taking in $26.2 million for the quarter.
On the other side of the coin, the Golden Nugget’s profits dropped 51.7 percent year-over-year, falling to $2.3 million. Two casino posted operating losses for the year, with Bally’s losing $2.5 million and Resorts taking a $1.2 million hit.
Revenues Up, Hotel Occupancy Steady in 2024
There were some bright spots in the report. Net revenue for the casinos was up 1.9 percent over the first quarter of 2023 to $726.3 million, with an additional $30.3 million coming in from the online-only licensees. In addition, hotel occupancy remained flat at 64.8 percent for the quarter, despite the fact that the average room rate was up about $8 per night.
However, the slight increase in revenue wasn’t enough to make up for increased expenses. Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, cited increases in “the cost of doing business, inflation, and a potential shift in revenue mix to operations like lodging and food and beverage,” according to the Associated Prss.
It’s unclear if the situation will improve for Atlantic City’s casinos as the year moves on. In-person gaming revenue at the resorts was down 6.3 percent year-over-year in April, and even with accounting for sports betting and online gambling, five casinos saw their total take decline compared to April 2023.
In the long run, it may be that internet gambling and sports betting will have to make up a larger portion of the profits for New Jersey’s gaming industry. For the first four months of 2024, New Jersey’s land-based casino revenue is down 1.6 percent to $872.9 million, while online gambling is up 21.1 percent to 750.7 million, and sports betting has brought in $434.2 million, up 48.6 percent.
