Atlantic City casino profit sees strong 3rd quarter increase

The New Jersey Division of Gaming Enforcement released data Friday on the gambling industry for the third quarter of 2019.

As reported by the governmental agency, Atlantic City’s nine casinos posted a double-digit rise over last year.

Gross operating profits for the three-month period increased $26.5 million, or 12.5%, compared to the same period in 2018, according to data from the state Division of Gaming Enforcement.

The $239.4 million in gross operating profits — the widely accepted measure of industry profitability — is the strongest reporting period for Atlantic City casinos since the third quarter of 2017.

The third-quarter results, which include the months of July, August, and September, are the industry’s first opportunity to compare a nine-casino market following the simultaneous openings of Hard Rock Hotel & Casino Atlantic City and Ocean Casino Resort in June 2018, the Press of Atlantic City reports.

Net revenue — a figure that reflects casino gaming revenue after promotional allowances plus room, food and beverage, and other ancillary earnings — was also up for the quarter. The city’s nine casinos reported nearly $928.9 million in net revenue, an increase of 2.7% over 2018. It was the sixth consecutive quarter of net revenue growth in Atlantic City.

The two newest casino properties posted the largest increases in operating profits and net revenue in the third quarter. Hard Rock posted an operating profit of $24.4 million for the summer months and $128.4 million in net revenue. Ocean — a property that had only posted one profitable quarter since opening — reported $10.23 million in gross operating profit and $79.9 million in net revenue.

Mike Donovan, senior vice president, and chief marketing officer for Ocean, said the property was “pleased with our performance in the third quarter.”

“We set a property record for profits, driven by a 27% increase in net revenue,” Donovan said. “Ocean has seen four consecutive months of double-digit growth, and we’re excited to carry that momentum into 2020.”

The third quarter of 2019 was the first reporting period this year in which the industry posted positive operating profits. Year-to-date, the industry is down 4.5% compared to 2018. Borgata Hotel Casino & Spa was the only pre-Hard Rock and Ocean property to report an increase, 2.3%, through the first nine months.

Net revenue is up 10.8% through three quarters this year, but all seven of the pre-Hard Rock and Ocean properties are down compared to the same period last year.