Atlantic City casino profits down 15% in 1 year
- Atlantic City, New Jersey’s 9 casinos have seen a cumulative drop in profits of about 15% in 2023’s first quarter when in comparison with 2022.
- The casinos posted a collective working revenue of $135.4 million this quarter, in comparison with almost $160 million in Q1 of 2022.
- The Borgata, Hard Rock, and Tropicana casinos have been among the many hardest hit, dropping as much as half of their earnings and offsetting modest good points by different casinos.
Atlantic City’s 9 casinos collectively noticed their gross working revenue decline by almost 15% in the primary quarter of this year in contrast with the identical interval a year earlier.
Figures launched Monday by the New Jersey Division of Gaming Enforcement present the casinos collectively posted an working revenue of $135.4 million in the primary three months of 2023, down from the greater than $159 million in profits they noticed in the primary quarter of 2022.
James Plousis, chairman of the New Jersey Casino Control Commission, stated the casinos are coping with larger prices this year, together with considerably larger wages they agreed to pay employees together with housekeepers, bartenders, beverage servers and porters beneath a landmark contract reached final summer time.
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Gross working revenue displays earnings earlier than curiosity, taxes, depreciation, and different fees, and is a broadly accepted measure of profitability in the Atlantic City casino business.
“Compared to the first quarter last year, the casino hotels are employing more people and a progressive labor agreement was reached,” Plousis stated. “These steps are emblematic of an industry that is preparing for growth and success.”
Mark Giannantonio, president of Resorts casino and of the Casino Association of New Jersey, additionally attributed the decrease earnings to inflation.
Bally’s swung from an enormous first quarter loss final year to a meager revenue this year. Its $88,000 working revenue was up from a $6.8 million loss a year earlier.
The Ocean Casino Resort’s revenue was up 27.6%, to $23.6 million; Harrah’s noticed its revenue improve by greater than 21%, to $19.2 million; and Caesars’ revenue was up over 7%, to $11.3 million.
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Resorts swung from a $527,000 revenue in final year’s first quarter to a $284,000 loss this year. The Borgata’s revenue was down over 50%, to $22.8 million; Hard Rock’s revenue was down 17.5%, to $22.2 million; and Tropicana was down 15.3%, to $16.7 million.
The Golden Nugget had a revenue of $4.8 million, down from a $5.6 million revenue over the identical interval final year.
Among internet-only entities, Resorts Digital was up almost 6%, to simply beneath $8 million, and Caesars Interactive Entertainment NJ was down 13.2%, to $6.8 million.
The Golden Nugget had the lowest-cost common room rental charge in the primary quarter, at $113 an evening. Ocean had the best, at $212.
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The total casino lodge occupancy charge for the primary quarter was 65.2%, up 2.1% from a year earlier.