Writer: Joshua Andino
2 min read September 2023 — Atlantic City casinos have mostly recovered profitability to 2019 levels, however some have seen declining revenues over the course of the last year.
Findings from the Division of Gaming Enforcement show some Atlantic City casinos have seen declining revenues from over the course of the second quarter this year when compared to 2022. While New Jersey’s coastal communities may not be dominated by the gaming industry as they were decades past as they look to diversify their economies and bring in more family-friendly options, the casinos still play a key role helping bolster tourism and local city and county revenues.
“If you look at the casino industry, it has come back with a vengeance but it is going to take a while for the entire business community to return to 2019 strength because the world is different now,” explained Marty Small, mayor of Atlantic City in an interview for Invest: South Jersey 2022-2023.
The casinos surged past 2019 revenue levels by the end of last year, however there are signs that a shift is underway, with decreasing revenues and profits reported for the first half of 2023.
Casino licensees reported a net revenue of $819 million over the course of the second quarter, a 1.2% net decrease from last year. The first six months of 2023 saw $1.6 billion in net revenue, increasing slightly by 1.5% over the course of the first six months of this year when compared to the same period last year.
Gross operating profit for the casinos also declined to $281.4 million, a 17.9% decrease compared to the same time last year.
Casino hotel occupancy was also down, with hotels reporting a 74.4% rate of occupancy for the second quarter this year, a 3% decrease compared to the same period in 2022. For the first six months of the year, occupancy remained generally flat compared to last year, and hovered at 69.8%, less than a percent difference that the previous year.
The full report from the DGE is available here.
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