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The New Jersey Division of Gaming Enforcement released its Q1 2024 financial results for Atlantic City casinos. Despite a rise in total net revenue to $740.2 million from $726.3 million in Q1 2023, the state experienced a decline in gross operating profits.
Gross operating profits fell to $140.5 million in the first quarter of 2024, marking a 9.6% decrease compared to the same period last year. Jane Bokunewicz, Director of the Lloyd Levenson Institute at Stockton University, attributed the decline to several factors. She cited “an increase in the cost of doing business, inflation, and a potential shift in revenue mix to operations like lodging and food and beverage that traditionally have narrower profit margins.”
The Lloyd Levenson Institute, under Bokunewicz’s leadership, conducts studies on the Atlantic City gambling market.
Out of the nine casinos, only Hard Rock Hotel and Casino and Ocean Casino Resort reported an increase in gross operating profits. Hard Rock saw the largest gain, with an 18.3% increase to $26.2 million. Ocean Casino Resort posted a 1.2% rise, reaching $23.9 million.
Conversely, Golden Nugget Hotel experienced the most significant decline, with its operating profits plummeting 51.7% to $2.3 million. Tropicana Hotel’s profits dropped from $16.8 million to $12.5 million, and Harrah’s saw a 12.3% decrease, down to $16.9 million.\
Despite the overall decrease in operating profits, several casinos reported higher net profits. Caesars saw a 3.8% increase, rising from $57.4 million in Q1 2023. Ocean Casino Resort’s net profit climbed to $116.6 million from $106.1 million. Hard Rock Hotel and Casino also grew, with a 7% increase, reporting $133.4 million in net profit.
The Lloyd D. Levenson Institute, in collaboration with the Casino Association of New Jersey, recently published its first-ever “2023 Impact: Atlantic City Casino Industry” report. The report highlighted the casino industry’s ability to generate $467 million in gross gaming tax revenue in 2023, reflecting nearly a 12% increase over the previous peak in 2006.