Atlantic City casinos see revenue almost flat in Q2 at $186M, but five properties fall behind pre-pandemic levels

2022-08-23

United States

Reading time 2:01 min

As reported by New Jersey's Division of Gaming Enforcement, Atlantic City's casinos and their online partners saw their collective profits decline by nearly 1% in the second quarter of this year, and five of the nine casinos failed to exceed their pre-pandemic profit levels.

The state's regulator reported the casinos and online affiliates posted a gross operating profit of $183.6 million in April, May and June of this year. That was down from $185.1 million a year earlier.

Although the casinos collectively surpassed the $159.3 million profit posted during Q2 2019, four properties have posted lower individual earnings than they did in the pre-pandemic period, and one -Bally’s- saw an operating loss of $3.7 million.

Borgata posted the largest quarterly operating profit at $42.2 million, up 4.6% from a year ago. Hard Rock earned $38 million, up nearly 46%, while Tropicana saw $30.3 million, up 8.2%; and Harrah’s earned $21.3 million, down 14%.

Meanwhile, Ocean casino made $15.5 million, down 8.1% from a year ago and Caesars saw $14.1 million, down 23.6%. Golden Nugget earned $9.1 million, down 14.7%; and Resorts earned $6.2 million, down 15.1%.

Among online-only entities, Caesars Interactive Entertainment-NJ earned just under $6 million, up 35.7% from 2021; Golden Nugget Online Gaming made $2.5 million, down from $7.8 million; and Resorts Digital saw nearly $1.8 million, down 50%.

As reported by Associated Press, James Plousis, Chairman of the New Jersey Casino Control Commission, stated: “Although gross operating profit figures were relatively flat in the second quarter, during that time period the casino hotels were making important and significant investments in their facilities to create new and exciting experiences for their guests to enjoy. Those capital investments are critical to ensure the long-term appeal of Atlantic City as a resort destination.”


James Plusis (center)

Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, which studies the Atlantic City gambling market, said higher operating profits compared to 2019 shows “that casino operators have continued to leverage lessons learned during the pandemic to balance expenses with consumer demand.”

“Amid uncertainties in the market, from the continued influence of public health concerns to inflation and raised fuel prices, the industry as a whole has learned to adapt and operate profitably,” she said, according to AP.

Ocean casino had the highest average nightly rate for a hotel room in the second quarter at $257.43, while Resorts had the lowest at $125.26. Hard Rock had the highest hotel occupancy rate at over 95%, while Golden Nugget had the lowest at less than 58%.

The Borgata also broke a new record in July, as internet gambling and sports betting helped propel the property in July to the best month an Atlantic City casino has ever had. The city's top-performing casino won more than $124 million from in-person casino gamblers, internet wagering and sports betting.