Amidst the glittering skyline of Atlantic City, the towering casinos that line the boardwalk and dot the Marina District cast long shadows over a narrative of triumph and tribulation. In these hallowed halls of chance and fortune, echoes of success clash with the reality of financial figures. As the New Jersey Division of Gaming Enforcement laid bare the full-year reports for the nine operatic casinos, a tale of increased net revenue juxtaposed with the sobering declines in profit emerges.
The nine brick-and-mortar establishments managed a commendable feat, bolstering their net revenue by nearly 3% to a robust $3.23 billion. Such growth, however, found itself tempered by rising labor and supply costs, leading to a gross operating profit of $744.7 million—a slight 1.6% dip from the previous year’s figures.
Within this mixed landscape of gains and setbacks, three casinos painted a different picture—Borgata, Ocean Casino Resort, and Bally’s climbed the hill of profitability. Borgata observed a modest 1.3% rise to $226.1 million, while Ocean Casino beamed at a 22% increase to $117.3 million. Bally’s, following a transformative makeover, leaped from a $1.9 million loss to an $11.1 million profit, a staggering 689% ascendancy.
Conversely, the remaining six casinos grappled with diminishing profits, with ranges from Hard Rock’s 2% to the starker 55% experienced by Resorts. Yet, it is notable that all maintained a profitable status.
Amidst these financial ebbs and flows, the subsidiary operations of Caesars Entertainment and Resorts dauntlessly reported incremental profit uplifts, further buoyed by income from iGaming and online sports betting, though communicated through separate corporate channels.
James Plousis, chair of the overseeing New Jersey Casino Control Commission, contends that 2023, despite its profit tribulations, showcased a strength not to be discredited. The year’s profits, he notes, stand second only to the past six years, with 2023 marking the third consecutive time net revenue has exceeded the $3 billion watermark.
“The casinos are reinvesting in their properties,” Plousis remarked with a forward-looking optimism, emphasizing the positive gross operating profits each casino reported as they grapple with stiff competition.
While optimism prevails, concerns simmer as industry experts such as Jane Bokunewicz of Stockton University, note the 2023 profit report unveils the growing expense of casino operations in Atlantic City. Consumer spending, stretching to nearly $3.2 billion, fails to compete with rising guest costs—an increase of nearly 3%.
An evaluation of broader trends indicates only Borgata, Hard Rock, Ocean, and Tropicana increased profits beyond their 2019 benchmarks. Meanwhile, room sales still lag behind pre-pandemic figures, facing a significant contraction compared to the approximately 4.3 million rooms sold in 2019, albeit at a lower average rate.
Thus unfolds the chronicle of Atlantic City’s casinos—a saga of resilience amidst fiscal adversity, a story where reinvestment and innovation become essential players in the game of sustainability, casting a dice toward future prosperity and fortune.
