Atlantic City casinos report 1.3% decline in Q2 profits despite continued profitability

Atlantic City's casinos and two online-only gambling entities have seen a slight dip in earnings for the second quarter of 2024, as reported by New Jersey's gambling regulators.

The New Jersey Division of Gaming Enforcement revealed that the combined gross operating profit for these establishments reached $178.4 million during this period, a 1.3% decline compared to the same quarter in the previous year.

Despite this overall downturn, all nine casinos managed to remain profitable. However, six of them experienced lower profits compared to the same timeframe in 2023.

The Borgata led the group with an operating profit of $54.3 million, marking a 15.5% increase. Hard Rock followed with a 16.3% rise, bringing in $35.4 million. On the other hand, others like Ocean and Tropicana saw their profits shrink, with Ocean's profit dropping by over 33% to just under $16 million.

James Plousis, chairman of the New Jersey Casino Control Commission, pointed out that rising costs for goods and services continue to challenge operators.

Meanwhile, Jane Bokunewicz, who heads the Lloyd Levenson Institute at Stockton University, noted that while there was a slight uptick in net revenue, it did not translate into improved profitability, a trend that may be disappointing for Atlantic City's casino operators.

Internet-only operators also faced mixed results. Caesars Interactive Entertainment posted a slight decline in profit, while Resorts Digital experienced a profit surge of over 66%.

The collective earnings for both casinos and online operations in the first half of 2024 stood at $333.7 million, showing a nearly 5% decrease from the same period in 2023.

In the hotel sector, Hard Rock maintained the highest occupancy rate at nearly 92%, while Golden Nugget had the lowest at just over 52%. The Ocean casino charged the highest average room rate at $268.47 per night, contrasting sharply with Golden Nugget's more modest $108.14.