Atlantic City casinos are seeing profits, but for how long? 2017 was a profitable year for Atlantic City casinos. The New Jersey Division of Gaming Enforcement (NJDGE) just released their 2017 report. Overall, profits jumped by nearly one-quarter despite a fairly flat revenue performance.
This news is positive indeed for AC’s casino operators. Yet what will happen when two more big players set up shop this summer?
Numbers make the city roll
The city’s seven casino operators reported total revenue of $3.54b in 2017. This is up 0.9% from 2016. They earned a combined gross operating profit of $723.3m, a 23.7% year-on-year improvement. Caesars Entertainment’s Harrah was the only one who lost out in 2017.
It’s no surprise that Borgata leads the profit margin. They tallied a 19.5% increase from 2016, with profits of $292.5m. Second is Caesars Atlantic City, earning $92.1m. This is a touch above Tropicana, which clocks in at $91.9m. Yet this last casino had the biggest percentage gain, a whopping 71%.
Next comes Bally in fourth, followed by Golden Nugget and Resorts. The profits skyrocketed in the last quarter of 2017. We have not seen figures for 2018, but casino operators are hoping the upward year-end trend will continue.
New Jersey’s two internet-only operators in the regulated online gambling market also saw profits. Resorts Digital earned $14m while Caesars Interactive Entertainment New Jersey earned $11m.
Putting it all in context
Don’t forget that Atlantic City’s profits have been increasing since the market began its enforced downsizing in 2014. This led to the closure of five casinos. And this has proven fruitful for those still in the game.
But what will happen when two of these properties reopen this summer? Trump’s old Taj Mahal is reopening as Hard Rock Atlantic City. The ex-Revel is being transformed into Ocean Resort Casino. As you can imagine, we’re both anxious and excited to see what two more big players will bring to the table.