On Monday, the New Jersey Division of Gaming Enforcement (DGE) presented gross operating profit data for its casino industry. According to those figures, there was a total of $155.6 million in profits on net sales of $719.8 million.
For all nine Atlantic City casinos, profit margins were higher in the first quarter of this year than they had been both a year earlier and before the pandemic. However, just four of the nine casinos recorded better gross operating earnings than they did before the coronavirus epidemic took. That was way back in the first quarter of 2019.
“We see the continuation of an overall pattern of recovery for Atlantic City’s casino operators. While COVID remains a concern, the public seems to be returning to pre-pandemic social behavior by attending large gatherings, traveling more, and socializing with friends.”
Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University.
Borgata made $45.8 million in gross operating profit, Hard Rock $26.8 million, Tropicana $19.7 million, Ocean $18.5 million, Harrah $15.7 million, Caesars $10.6 million, Golden Nugget $5.6 million, and Resorts $536,000. Hard Rock’s Q1 operating profit grew by a whopping 213% over the previous year, making it the most profitable operator. Ocean followed close behind with a 133% rise in operating profit.
As of now, Atlantic City casinos’ first-quarter profits are showing that the facilities are financially stable. However, they will be put to the test financially in the near future. Most notably, the upcoming summer will be a challenging time for many casinos because of the tight labor market, which is pushing up labor costs, and the growing prices of goods and services in the marketplace.
According to experts, casino performance in Q1 demonstrates their ability to streamline processes while hiring fewer people. Many of the recent job cuts were seemingly optimization measures that came into being as the number of people staying overnight at Atlantic City casinos continued to fall.
Perhaps things are going to change. Non-gambling income is on the rise as a result of better hotel occupancy rates. As such, the need for casino staff will likely rise as well. In the first three months of this year, casino hotels were occupied at a rate of 63%. That is an increase of roughly 11% over the same time in 2021. Average occupancy was 81.5 percent for Ocean and 41.6 percent for Golden Nugget. These were two of the highest in the state.
Richard is our eyes and ears in the casino industry. He’s constantly traveling on the go to make sure he doesn’t miss a beat from the very heart of the gambling industry, visiting events all around the USA. His writing expertise and love of everything iGaming, along with his own contacts in the industry allows for compelling and accurate stories. Richard brings our readers all the latest developments from the casino floor with added value.
Amid changing gaming legislation, Sweden is taking a closer look at the AML laws in the country and whether operators have been living up to their end of the deal. Casino Cosmopol, apparently, hasn’t. Casino Cosmopol Fails AML Standard Test Land-based operator Casino Cosmopol, owned by the state’s Svenska Spel, the first iGaming entity in […]
The Danish gaming watchdog, Spillemyndigheden, is launching a fresh campaign intended at protecting players from gambling harm, and specifically aiding problem gamblers. The campaign will focus on the StopSpillet initiative designed to help gambling addicts find help and stop indulging in destructive gaming habits. The initiative was originally launched in January 2019, and StopSpillet has […]
Following an internal upheaval that saw founder Teddy Sagi sell the last of his shares in the company, Playtech is now back on track, signing new partnerships with Fortuna Entertainment Group and IWG, and consolidating its market presence. After the Storm, IWG and Fortuna Partnerships Following a rather rocky few weeks, Playtech is back to […]
