The only Atlantic City gambling hall to show positive results in the third quarter was Ocean Casino Resort, while the normally successful Borgata was barely able to avoid a major operating loss.
The New Jersey Division of Gaming Control (DGE) released figures for the nine AC casinos plus the two online sites that together saw a total net income of $ 629.3 million during the period ended september 30th.
This represents 32.3% less than that produced in the third quarter of 2019. On the other hand, in the first three quarters of this year, casino revenues fell 44.4% to about $ 1.35 billion.
The combined market operating profit was only $ 150.5 million last quarter, 37.2% less than in the same period last year. Much better than the $ 112 million loss that casinos reported during the second quarter of the year.
All land-based casinos had to close due to the increase in covid19 cases, so they could barely count on their online casino and sports betting options.
The operator reported an operating profit of $ 24.4 million, which is an increase of 139% compared to last year. Ocean Casino Resort (OCR) reopening costs from 2018 were exceeded.
The other properties to post annualized earnings were the two online sites and Bally’s third AC, earnings for the quarter were around $13 million (8.3%).
Apart from these casinos, all the others posted losses of up to double digits. The one with the biggest drop was the Borgata, which fell 96.6% to just $2.35 million. In general, the Borg always rank ahead of their rivals in terms of earnings. But instead they decided not to open with limitations in rejection of the government’s ban on eating and drinking indoors.
One of OCR’s biggest benefits was its hotel occupancy rate, which increased to 97.2% in the third quarter. Despite the fact that the average room rate was on the order of $246, exceeding the market average by about $87.
OCR was followed by Caesars AC in occupancy, reaching 91.8% with an average room rate of $147.
The DGE numbers show the difficult situation AC has had. The closures and gambling limitations have caused heavy losses. Nothing compared to the 2019 income.