Atlantic City’s nine casinos saw their operating profits decline by 9.3% to $162.4 million in the second quarter, with a Stockton University analyst calling it “a clear trend” of the city’s casinos becoming less profitable.
Including online-only Caesars Interactive Entertainment New Jersey, the decline was 10.1%, according to the New Jersey Division of Gaming Enforcement’s data. All nine casinos remained profitable, but only Ocean Casino Resort and Caesars Atlantic City posted year-on-year increases.
“Even allowing for seasonal variation, there appears to be a clear trend in declining gross operating profit, even as the relatively mature integrated casino resort market in Atlantic City has produced steady net earnings year-over-year,” said Brian Tyrrell, director of Stockton’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism, as reported by the Press of Atlantic City.
Borgata Hotel Casino & Spa recorded the highest profit at $60.1 million, down 4.7%. Ocean followed with $30.1 million, up 12.2%, while Hard Rock Hotel & Casino Atlantic City reported $29.1 million, down 10.5%.
Tropicana Atlantic City posted $13.5 million, down 8.7%, while Caesars recorded $12.9 million, up 2.9%. Harrah’s Resort Atlantic City reported just over $11 million, down 6.8%.
Golden Nugget Atlantic City’s profit fell 43% to $2.9 million, while Bally’s Atlantic City reported $2.1 million, down 8.8%. Resorts Casino Hotel posted $473,000, a decline of more than 95%. Caesars Interactive recorded an operating profit of $2.4 million, down 43.5%.
“Revenue at Atlantic City casinos does not always translate to profitability,” said Tyrrell.
Gross gambling revenue increased 7.3% in the first half of 2026 from the same period in 2025, while net revenue rose 0.2%. Gross operating profit, however, fell 15.5%.
Tyrrell attributed the pressure partly to higher costs for goods and labour, as well as increased internet and sports betting expenses, which he said added $120 million in costs for casinos and their partners.
For his part, Resorts President Mark Giannantonio attributed his casino’s profit decline largely to a deferred revenue payment from PokerStars in 2025 that was not repeated this year after their contract ended in 2025.
New Jersey Casino Control Commission Chairman James Plousis said the casinos faced their highest second-quarter costs and expenses in nine years. Despite the decline in profits, he said stable net revenue and hotel occupancy showed that the casinos continued to compete for gaming and leisure tourists.
Ocean recorded the highest hotel occupancy at 87.1%, while Golden Nugget had the lowest at 53%. Ocean also posted the highest average nightly room rate at $269.24, compared with $109.96 at Golden Nugget.
Across the nine casino-hotels, occupancy stood at 73.2%, with an average nightly room rate of $171.71.
Atlantic City’s casino market also faces potential changes from new casinos planned in New York City and ownership changes among its existing operators.
A pending sale of Caesars Entertainment to Golden Nugget owner Tilman Fertitta could affect Atlantic City’s market. If completed, the deal would give Fertitta’s company ownership of four of the city’s nine casinos.
New Jersey regulators would then have to assess whether the ownership structure violates the state’s law against undue economic concentration. Potential measures could include requiring the sale or closure of one or more casinos.
Meanwhile, Bally’s Corp. said it faces challenges as it works to develop casinos in New York, Chicago and Las Vegas.
Original article: https://www.yogonet.com/international/news/2026/08/25/126061-atlantic-city-casinos-becoming-less-profitable-despite-higher-gaming-revenue-analyst-warns
