NJ Data Shows Atlantic City Casino Revenue Dip In 2023

In total, the nine Atlantic City casinos recorded a collective gross operating profit of $744.7 million for 2023, marking a 1.6% downturn from 2022. This decrease widened to 4.1% when including two internet-only entities affiliated with some of the casinos, resulting in total earnings of $780 million.

Although all nine casinos remained profitable throughout 2023, only three saw gains, underscoring the ongoing operational challenges facing the industry despite digital expansion.

Industry concerns and rising costs:

• Jane Bokunewicz of Stockton University’s Lloyd Levenson Institute noted that operational costs are climbing while visitor spending stagnates.

• Expenses have surged due to higher wages, procurement costs, and increased spending on customer incentives.

• Despite these investments, consumer spending has not risen proportionately.

Smoking ban debate reignites:

• Casino workers, supported by the United Auto Workers Union, filed a lawsuit challenging the exemption allowing smoking inside casinos.

• Advocates believe a ban could boost jobs and revenue, citing smoke-free successes in other states.

• Opponents argue a ban would hurt competitiveness and worsen current profit declines.

Casino performance overview:

• Borgata: $226.1M (up 1.3%)

• Hard Rock: $125.5M (down 2%)

• Ocean: $117.2M (up 22%)

• Tropicana: $93M (down 15.1%)

• Harrah’s: $80M (down 9.7%)

• Caesars: $51.7M

• Bally’s: $11.1M

• Resorts Casino Hotel: $9.5M

Only Borgata, Hard Rock, Ocean, and Tropicana outperformed their pre-pandemic 2019 profit levels. Rising expenses, particularly from 2022 wage increases, continue to weigh on the industry.

The average hotel occupancy rate in 2023 stood at 73%, with Hard Rock leading at 88.8%, while Golden Nugget lagged at 53.8%.
Average room rates reached $180.67, ranging from $123.31 at Golden Nugget to $270.31 at Ocean.

Despite a resilient online sector, Atlantic City’s casinos face tightening margins and growing economic pressures as they navigate post-pandemic recovery and renewed regulatory debates.