Last year, Atlantic City casinos were able to raise their net revenue, but the rise was insufficient to cover increasing overhead. T hat resulted in earnings decreases from year to year.
T he New Jersey Division of Gaming Enforcement (DGE) released annual operating reports for Atlantic City's nine casinos on Monday. T he statistic covers revenue from hotel rooms, food and beverage, entertainment, and casino activities.
T he nine physical properties boosted net income by about 3% to $3.23 billion. However, rising labor and supply costs hurt their bottom lines, resulting in a 1.6% drop from 2022 to a gross operating profit of $744.7 million.
Only three of the nine casinos saw increases in profits: Bally's, Ocean Casino Resort, and Borgata, owned by MGM Resorts.
Ocean's business performance improved 22% to $117.3 million, while Borgata's profit increased 1.3% to $226.1 million. Following the Boardwalk property's significant renovation, Bally's profit soared 689% from a $1.9 million loss in 2022 to a $11.1 million profit last year.
T he six other casinos saw earnings declines ranging from 2% at Hard Rock to 55% at Resorts over the previous year. All the casinos were lucrative, nevertheless.
The profits of Caesars Entertainment's three casinos (Caesars, Harrah's, and Tropicana) and Resorts were marginally greater since those businesses reported their revenue from online sports betting and iGaming through different organizations.
Despite the declines in profits, 2023 was still a good year, according to James Plousis, chair of the New Jersey Casino Control Commission, which is in charge of the DGE. According to him, the $744.7 million total profit came in second place over the previous six years, and 2023 was the third consecutive year that net revenue exceeded $3 billion.
"Each casino hotel reported positive gross operating profits in 2023 while facing strong competition for customers,” Plousis said in a statement to Casino.org. “The casinos are reinvesting in their properties to add exciting new attractions and appealing accommodations.”
T he CCC chair reported that he visited the casinos in the winter and was impressed with what he saw there.
"Those reinvestments will be key to impressing guests and sustaining positive vibes during the upcoming summer season,” Plousis said.
T HE DGE FILING ALSO SHOWED IMPROVEMENT IN TERMS OF CAR ROOM STAYS. T he nine hotels sold 4,069,412 rooms, an increase of 3.7% over 2022. T he typical rate increased from $178 to $181.
T hough Plousis highlighted certain reasons for optimism, other data points give the industry cause for greater anxiety. The warnings come as state lawmakers are still debating whether to outlaw smoking in casinos, a move that the resorts claim would further reduce earnings and probably result in job losses.
The 2023 earnings report, according to Jane Bokunewicz, director of Stockton University's Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism (LIGHT), shows that operating a casino in Atlantic City has grown more costly. Additionally, despite visitor expenses rising by almost 3% to $3.2 billion, consumer spending isn't keeping up.
Borgata, Hard Rock, Ocean, and Tropicana were the only four of the nine casinos to post better profits in 2023 compared to 2019.
T he number of hotel rooms sold in casinos is still far lower than it was before the outbreak. T he same nine resorts had nearly 4.3 million reservations in 2019, but the average price was significantly lower at $142.
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