Summary:
- Fewer casinos saw a larger profit margin in the second quarter.
- Gross operating profits reached almost $146 million.
- Gross profits are down 20.5% from 2022.
Atlantic City casinos are still doing well when it comes to individual earnings on a monthly and quarterly basis, but the overall totals are dwindling.
The New Jersey Division of Gaming Enforcement recently reported the second quarter earnings, showing the state’s casinos earned almost $146 million in April, May, and June. This was a decrease in total profits from the $159 million in 2022, a decrease of over 20%.
Why a Decline in Profits?
Gross operating profits reported by the Division cover the amount earned before interest, taxes, depreciation, and additional expenses are paid. The decline in the second quarter’s earnings is reportedly due to a few factors, including new contracts for employees.
Analysts report that as labor expenses are increasing now and did not exist in July of last year, it creates more operational expenses and a decrease in earnings. The decline was expected due to this and additional factors, such as the overall cost of operations due to lingering inflation.
The casinos profited despite the higher employment costs, which is an encouraging sign that earnings will remain on the up and up. A true sign of continued growth will be seen in the coming months and into 2024 as we compare this year’s results.
Individual Casino Earning Breakdown
Hard Rock brought in just over $30 million but was down 20% from 2022. Tropicana dipped around 18%, with an almost $25 million profit. Ocean Casino saw the opposite and earned around $24 million, a huge increase of around 54%. These were the only casinos to earn more in the second quarter than during the same time period pre-COVID-19 in 2019.
Harrah’s was down over 15%, earning just over $18 million. Borgata was down, earning $12.3 million, a close to 71% decrease. This was the largest dip in the industry. Caesars was up more than 8% with $15.3 million in earnings, while Golden Nugget was down by 16% with $7.6 million. Resorts generated $3.4 million, a huge drop of around 44% from last year.
Online Earnings
New Jersey is also home to online gaming, and the Division reported their earnings as well. Caesars was the top earner, bringing in $6.7 million in profit. This was an increase of almost 14%. Resorts Digital came in at $1.1 million, a decrease of 35%.
Bally’s was able to secure $1.8 million in profit, an increase from a huge loss of over $3 million last year. The results were mixed as operators try to vie for the overall market share.
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