Atlantic City Casino Earnings Decline Amidst Inflation

Atlantic City casinos are making less money as prices go up.

Atlantic City casinos made less money in the first three months this year, earning $140.5 million, which is about 10% less than last year. This happened even though they made more money from their customers, with their total sales going up by 2% to $740.1 million. The reason they're not making as much profit is that it costs more to pay workers and for other things they need to run the casinos. This is what James Plousis, who's in charge of the New Jersey Casino Control Commission, says.

Financial Health of Atlantic City Casinos

• Borgata: Made $51.7 million but dropped 10% from last year.
• Hard Rock: Increased profits by 18%, earning $26.2 million.
• Ocean: Slight profit climb of 1%, with nearly $24 million.
• Harrah’s: Earned $16.9 million, a 12% decrease.
• Tropicana: Saw a big drop of 25%, down to $12.5 million.
• Caesars: Made $10.6 million, 7% less than last year.
• Golden Nugget: Profits plummeted by 52% to $2.3 million.
• Bally’s: Lost almost $2.5 million from its property operations.
• Resorts: Reported an operating loss of $1.2 million.

However, Resorts Digital helped offset its physical counterpart’s losses with a $7.7 million profit from online gaming and sports betting.

Atlantic City casinos have 15,514 rooms. On average, 64.8% are filled nightly, costing $164. Before the pandemic, more rooms were taken (72.6%) but the price was lower. In early 2022, about 63% of rooms were occupied at a rate of $152, and in 2023 it increased to 65% occupancy with a room rate of $156. The hotels are spending money on improvements, which leads to higher prices and attracts more guests who also pay higher luxury and occupancy taxes.

Casinos in Atlantic City are busy making their properties better. Bally’s is celebrating its 45th year with big updates. Borgata made their Long Bar better, and Harrah’s is opening a new place called Buddy’s Boardwalk Empire. Golden Nugget is updating its rooms, Resorts has made its outdoor LandShark Bar & Grill nicer, and both Hard Rock and Ocean have improved their beach areas. These changes are good reasons for people to think about going to Atlantic City for their summer trips.

Atlantic City casinos expect to make more money this summer despite a slight drop in profits this year. Even though they're making less profit, they're still earning more overall and are spending money to improve and add new features to attract more people. With these changes, they hope to see more visitors and make more money when summer comes, which is usually a busier time for them.

The drop in profits during the first quarter is worrying, but it hasn't become a regular pattern yet. Atlantic City casinos are making smart investments and changes that are bringing in more people who spend more money. These efforts are helping them deal with rising costs. How these casinos handle their money problems and get ready for the busy summer season is going to be important for the area's gaming and tourism industry in the future.