Following the numbers
All nine of Atlantic City’s casinos were profitable in 2024 despite most of their bottom lines decreasing.
Caesars and Hard Rock reported year-over-year increases of 10.7 and 7.9 percent in operating profit to $57.3 million and $135.5 million. The remaining seven saw their total cut by anywhere from 8-77 percent, with Bally’s suffering the largest setback of the bunch.
Harrah’s reported a 7.4 percent decrease in revenue and a 20.4 percent decline in operating profit, hitting $285.7 million and $64.2 million respectively.
The Golden Nugget lost 1.7 percent in revenue and 39.5 percent of operating profit, which plummeted to $18 million.
Ocean Resort lost 1.8 percent of its revenue and 13.6 percent of its operating profit, which hit $101.3 million.
Resorts Casino suffered a 1.4 percent revenue drop and a 43.8 percent decline in profit, which settled at $5.3 million.
Tropicana lost 2.2 percent of its revenue and 11.5 percent of its $82.4 million in profit.
The collective 9.2 percent decline in operating profit across all locations reflected a tough year for an area that was once rich with local and traveling gamblers but has become afflicted with a variety of economic challenges.
Why the steps backward?
There are many potential culprits in Atlantic City casinos’ recent struggles.
One of the reasons often cited is the expansion of online gambling in New Jersey. The state has one of the largest gambling markets in the country and has worked to expand its online offerings, affording gamblers more opportunities to play their favorite games without leaving the comfort of their homes.
Rising inflation and costs of goods and services also played a role, as did recurring efforts from casino employees to ban smoking inside the facilities.
“Increases in expenses and drags on consumer demand (initially observed in the third quarter and following through into the fourth) likely resulted in the disproportionate decline of 9.2% in year-over-year gross operating profit,” said Jane Bokunewicz, director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism, told the Press of Atlantic City.
Bokunewicz also noted that land-based casinos may have to spend more on promotional opportunities to entice their customers to return to their facilities instead of wagering at online casinos, sweepstakes casinos, or other online platforms.
Mark Giannantonio, president of Resorts and the Casino Association of New Jersey, still believes that the best is yet to come for Atlantic City.
“For anyone who hasn’t been to Atlantic City recently, we provide value. You can see incredible shows and eat at world-class restaurants… we’re a market that’s on the rise.”
