Casinos across Atlantic City report profit declines amid iGaming growth

Atlantic City New Jersey
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Atlantic City casinos are taking a hit as online gambling increases in popularity.

The New Jersey Division of Gaming Enforcement (DGE) reported that the state’s nine casino properties generated a combined $744.7 million in gross operating profit in 2023, a 1.6% decline compared to the year prior. The results in 2023 were spearheaded by Resorts Casino, which posted a gross operating profit of $9.4 million in 2023, a 54.8% decline compared to $21 million in 2022. Bally’s made the most improvement in 2023 with $11.1 million in operating profit compared to a $1.8 million loss the year prior.

“It is getting more expensive for New Jersey’s casinos to operate, and patron spending may not be keeping pace,” Lloyd Levenson Institute Director Jane Bokunewicz told Fox News. “The same forces that might be tightening visitors’ purse strings, inflation, increased consumer prices, are also forcing operators to dig deeper into their pockets.”

A collection of Atlantic City casinos also reported declines in revenue.

Four of the nine casinos reported year-over-year revenue growth, which includes, Borgata, Caesars, Ocean Resort, and Bally’s. All other casino properties in Atlantic City posted year-over-year declines with Hard Rock leading the pack. Hard Rock generated $572.7 million in net revenue in 2023, a 4.3% drop compared to 2022. By comparison, Bally’s reported the highest year-over-year growth with $199.9 million in revenue in 2023, a 16.7% uptick.

Despite revenue and profit declines, all nine Atlantic City casinos were profitable in 2023.

Record iGaming in New Jersey

Atlantic City casinos are aiming to remain profitable as interest in iGaming across the Garden State grows. The DGE reported $183.3 million in iGaming wins in January 2024, a new monthly record. The results were a 19.9% increase compared to January 2023.

In January, total gambling revenue in New Jersey reached $559.1 million, up from $436.1 million for the same month last year. Despite the uptick, land-based casino revenue in the Garden State closed at $205 million in January, down from $211.7 million in January 2023.

Atlantic City casinos receiving backlash

New Jersey casinos are experiencing profit declines as employees voice their displeasure with work conditions.

Last week, UAW members filed a lawsuit in a New Jersey Superior Court against Gov. Phillip Murphy and Health Commissioner Dr. Kaitlin Baston over claims that casino worker rights are being violated due to exposure to secondhand smoke.

The plaintiffs, which include Casino Employees Against Smoking’s (Harmful) Effects, argue that New Jersey’s Smoke-Free Air Pact is unconstitutional as it allegedly provides casino owners with the authority to allow smoking inside their facilities through an exception despite health risks. Lawmakers have made previous attempts to ban smoking inside casinos but those efforts failed to garner enough support in the state’s legislature.