Atlantic City’s casinos reported a nearly 10% decline in profits for the first quarter of 2024, according to figures released by state gambling regulators.
The nine casinos collectively posted a gross operating profit of $140.4 million, down 9.6% from the same period in 2023. Including internet-only entities, the total profit was $155.4 million, an 8.7% decrease from a year earlier, the Associated Press reported.
Bally’s and Resorts reported operating losses for the quarter. Bally’s lost $2.5 million, compared to an $88,000 profit last year, while Resorts posted a $1.2 million loss, slightly worse than the $284,000 loss a year ago.
Hard Rock and Ocean were the only casinos to see an increase in profits during the quarter. Hard Rock’s profit rose 18.3% to $26.2 million, and Ocean’s profit increased 1.2% to $24 million.
Other casinos experienced varying declines in profits. Golden Nugget’s profit dropped 51.7% to $2.3 million, Tropicana’s fell 25.4% to $12.5 million, Harrah’s decreased 12.3% to $16.9 million, Borgata’s declined 10.1% to $51.7 million, and Caesars fell 7% to $10.5 million.
Among internet-only entities, Caesars Interactive Entertainment NJ saw a 5.9% increase to $7.2 million, while Resorts Digital experienced a 3.2% decrease to $7.7 million, the report said.
In terms of hotel occupancy, Hard Rock had the highest rate at nearly 81%, while Golden Nugget had the lowest at 47.2%. Ocean had the highest average hotel room price at $224.31, while Golden Nugget had the lowest at $93.68.
Despite a nearly $8 year-over-year increase in the average daily room rate, Atlantic City’s casinos sold 10,000 more room nights in the first quarter of 2024 compared to the same period in 2023.
Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, noted factors such as rising business costs, inflation, and a shift in revenue towards lower-margin operations like lodging and food and beverage as reasons for the profit declines, the report said.
James Plousis, chairman of the New Jersey Casino Control Commission, highlighted higher wages from recent labor contracts and increased costs of goods as additional contributing factors.
Original article: https://www.yogonet.com/international/noticias/2024/05/23/72318-atlantic-city-casinos-report-nearly-10-decline-in-q1-profits-to-1404-million
