Atlantic City's nine casinos and online operations see 7.5% profit decline in Q3
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Atlantic City's casinos and two internet-only entities earned $281.2 million in the third quarter of this year, a decline of 7.5% from the same period a year ago, according to figures released Monday by the New Jersey Division of Gaming Enforcement.
While the nine casinos collectively surpassed the level of profitability in the third quarter of 2019, before the COVID-19 pandemic, that waslargely due to the strong performance of the two newest casinos (Hard Rock and Ocean), and an accounting change by another one.
James Plousis, Chairman of the New Jersey Casino Control Commission, told the Associated Pressthat third-quarter gross operating profit was the third-best in Atlantic City since 2008, despite negative effects from a cybersecurity issue affecting the parent companies of four casinos.
For her part, Jane Bokunewicz, Director of the Lloyd Levenson Institute at Stockton University, which studies the Atlantic City casino industry, said that while Atlantic City saw "a bit of a cooling off in summer 2023" compared to the pent-up post-pandemic energy seen in 2021 and 2022, the city outperformed pre-pandemic 2019 for bothnet revenue and gross operating profit, suggesting that this could be part of a cycle of stabilization.
As for results per casino, Hard Rock Atlantic City posted a gross operating profit of $44.3 million in the third quarter, up less than 1% from a year earlier; while the Ocean Casino Resort’s profit was up by more than 10% to $43 million.
Meanwhile, the Borgata reported a profit of $73.5 million, down 1.7% from a year ago. According to local news, the gaming enforcement division said the Borgata recently changed the way it treated some rent expenses, moving them from an operating expense to a non-operating expense for accounting purposes.This change significantly increased the amount of the casino's reported gross operating profits, notes the division.
Tropicana had a profit of $36.7 million, down 11.5%. Harrah’shad a $30 million profit, down over 13%; while Caesars’ had a $21.1 million profit, down nearly 18%; and Golden Nuggethad an $11 million profit, nearly 4%. For its part,Bally'shad a $7.3 million profit, down over 32%; and Resorts had a $7.2 million profit, down nearly 43%.
Among internet-only entities, Caesars Interactive Entertainment NJ had a $5.1 million profit, down 18%, and Resorts Digital had a profit of nearly $1.6%, down nearly 50%.
For the first nine months of this year, the casinos and the online operations earned $632.1 million, down 4.2% from the same period a year earlier.
Resorts had the lowest-cost average room rental rate in the first quarter, at $147.89 a night. Meanwhile, Ocean had the highest, at $346.87. In terms of casino hotel rooms, Hard Rock had the highest occupancy in the third quarter at over 96%; while Golden Nugget was lowest at just over 67%.
