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Posted at: April 8, 20,24, 05.12h.
Last Updated on April 8, 2024 at 05:12h.
The casinos in Atlantic City did increase their revenue, but it wasn’t sufficient to cover the increased costs. This led to a year-over-year decline in profits.
New Jersey Division of Gaming Enforcement today released the full-year operating resorts of nine casinos located in Atlantic City. This data includes the revenue of casino operations, hotel rooms and food and beverages, as well as entertainment.
Nine brick-and mortar properties saw their net revenues increase by nearly 3%, to $3.23billion. However, increased costs of labor and supplies have lowered their gross operating profits to $744.70 million. This is a 1.6% drop from 2022.
Of the nine casinos, just three — Borgata MGM Resorts, Ocean Casino Resort, and Bally’s — experienced profit improvements.
Borgata’s profits increased 1.3%, to $226.1 millions. Ocean’s performance grew 22% at $117.3million. Bally’s revenue jumped 689% to $11.1m from a $1.9m loss in 2022 You can also benefit from The Boardwalk was completely remodeled last year.
Other casinos that you can visit year-over-year profit declines Hard Rock has a profit margin of 2%, while Resorts is at 55%. Every casino, however, was profitable.
Caesars Entertainment’s (Caesars Entertainment, Harrah’s Entertainment, Tropicana Entertainment) three properties and Resorts’ profit were slightly higher as these companies reported their iGaming income and online sports betting revenue through separate entities.
The Good
James Plousis of the New Jersey Casino Control Commission overseeing the DGE said that despite the drop in profits, 2023 is still an impressive year. The $744.7-million collective profit was the second highest in the last six years, and the year 2023 marks the third consecutive year that the net revenue exceeded $3 billion.
In a press release, Plousis stated that each casino hotel had positive gross profits for 2023 despite facing a strong customer competition. Casino.org. The casinos are investing in the properties of their establishments to create new exciting attractions and attractive accommodations.
CCC Chair said that he visited the casinos in the winter and was satisfied with the results.
Plousis explained that these reinvestments would be crucial to impressing visitors and sustaining a positive atmosphere during the coming summer season.
DGE also reported an increase in the number of rooms occupied by casino guests. The nine properties sold 4,069,412 rooms — up 3.7% from 2022. Average rates also increased from $178 up to $181.
The Bad
Plousis outlined some positive reasons to be optimistic, but other data raises more questions. Concern for industry. State lawmakers are still deciding whether or not to ban casino smokingThe resorts claim that this would lead to further losses and layoffs.
Jane Bokunewicz, Director of the Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism at Stockton University, stated that the 2023 report shows it is more costly for casinos in Atlantic City to conduct business. The consumer isn’t spending as much despite the fact that guest costs have increased nearly 3%, to $3.2 billion.
Only four of the nine casinos — Borgata, Hard Rock, Ocean, and Tropicana — reported higher profits in 2023 than they did in 2019.
Casino hotel room sales are also significantly lower than pre-pandemic. In 2019, the same nine hotels booked about 4.3 millions rooms. However, their average price was $142.
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