Atlantic City Casinos See 4.1% Profit Decline in 2023 Despite Growth in Areas
The Essentials at a Glance
The latest financial results for casinos licensed in Atlantic City show a 4.1% decline in gross operating profit in 2023. While casino-hotel licensees were able to record a slight increase, other areas face challenges. Despite these declines, all licensees were able to maintain their operations and even achieve growth in some areas.
Detailed Analysis of Financial Results
In the fourth quarter of 2023, the gross operating profit of casino licensees in Atlantic City fell by 3.6% to $148.5 million. However, looking exclusively at the casino-hotel licensees, there was an increase of 2.6% to $142.1 million. Borgata Casino led the list with nearly $48 million in gross profit, while Bally’s AC recorded a remarkable improvement from a $2.2 million deficit in the fourth quarter of 2022 to a profit of $1.9 million in the fourth quarter of 2023. In contrast, Resorts Casino had to take a significant decline and recorded a loss of $937,000.
Annual Overview 2023
For the whole year 2023, the gross profit of all licensees fell by 4.1% to $780.7 million. Among the casino-hotel licensees, there was a decline of 1.6% to $744.7 million. Despite these challenges, none of the licensees recorded losses for the entire year. Borgata was at the top with a profit of $226.1 million, while Bally’s AC achieved an impressive profit increase of 689% to $11.1 million. Resorts Casino, on the other hand, experienced the biggest decline with a profit decrease of 54.8% to $9.5 million.
Industry-wide Perspective
Despite declines in certain segments, all licensees were able to continue their business operations in 2023. Compared to the previous year, the combined revenue of all casino license holders increased by a modest 0.8% to $3.3 billion. These figures reflect an overall upward trend in New Jersey’s gambling industry, with total gaming revenue increasing by 10.9% and iGaming revenue by a remarkable 15.7% over the course of 2023.
Our Assessment
The financial results of Atlantic City’s casinos for 2023 paint a mixed picture. While some areas face challenges, there are also positive developments, particularly among the casino-hotel licensees and in the iGaming sector. These results underline the need for casinos to adapt and pursue innovative strategies to be successful in a changing market. The ability to maintain operations despite financial declines and achieve growth in some areas demonstrates the resilience and potential of the industry for future success.
Sources
– New Jersey Division of Gaming Enforcement
– Ricky Grant
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