Atlantic City Casinos See Slight Profit Dip in Q2 2024 Despite Revenue Growth
Atlantic City Casinos See Slight Decline in Q2 Earnings
Atlantic City’s gambling industry experienced a minor setback in the second quarter of 2024, with collective earnings dropping 1.3% compared to the same period last year. The New Jersey Division of Gaming Enforcement reported that the nine casinos and two internet-only gambling entities generated a gross operating profit of $178.4 million.
While all nine casinos remained profitable, two-thirds saw decreased profits from the previous year. James Plousis, chairman of the New Jersey Casino Control Commission, attributed this decline to rising costs of goods and services impacting operators.
Jane Bokunewicz from Stockton University noted that despite a 1.3% increase in net revenue, it did not translate to improved profitability.
Among individual casinos, Borgata led with a $54.3 million operating profit, up 15.5% from last year. Hard Rock followed with $35.4 million, a 16.3% increase. However, others like Ocean and Harrah’s saw significant declines of 33.2% and 13% respectively.
In the internet-only sector, Caesars Interactive Entertainment NJ earned $6.6 million, down 3.1%, while Resorts Digital saw a 66.3% increase to $1.9 million.
For the first half of 2024, combined earnings reached $333.7 million, representing a nearly 5% decrease from 2023.
Hotel occupancy rates varied widely, with Hard Rock boasting the highest at 92% and Golden Nugget the lowest at 52%. Ocean casino commanded the highest average nightly room rate at $268.47, while Golden Nugget offered the most affordable at $108.14.
These figures highlight the complex landscape of Atlantic City’s gambling industry as it navigates economic challenges and changing market dynamics.
