According to the Q3 2023 report from the New Jersey Division of Gaming Enforcement (DGE), all nine casinos located in Atlantic City turned a profit.
Despite a decline in Q3, all nine Atlantic City casinos continue to be profitable
The Division of Gaming Enforcement (DGE) of New Jersey announced on Tuesday that the nine casinos located in Atlantic City had a profit during the third quarter of 2023.
Casinos in New Jersey announced net income for the July–September period of approximately $949.26 million, or roughly the same amount as in 2022. However, as a result of rising operating expenses, their gross profits decreased by nearly 7% to $274.45 million.
According to the DGE, a casino's gross operating profit is the amount left over after deducting affiliate fees, interest, taxes, amortization, depreciation, and other expenses from its income statement. The indicator is frequently used to assess the profitability of the gaming sector in Atlantic City.
Despite seeing a $20 million decline in their bottom lines, all nine casinos turned a profit for the second quarter in a row.
Caesars Digital Unit Succeeds as Borgata Leads Q3 Profits
At the Borgata from MGM Resorts, it made the most money in town in the third quarter, with a gross operating profit of $73.5 million. Hard Rock and Ocean tied for second place with a meager $44.3 million.
Tropicana came next, bringing in roughly $36.8 million. With $30 million, Harrah's ranked second, ahead of Caesars ($21.1 million), Golden Nugget ($11 million), Resorts ($8.8 million), and Bally's ($7.3 million).
Caesars Entertainment does not disclose its revenue from iGaming, so it is likely understating the earnings of its three Atlantic City casinos (Caesars, Tropicana, and Harrah's). During the quarter, Caesars' digital division generated a gross profit of $5.1 million.
In the second quarter, Hard Rock and Ocean emerged as the most profitable casinos in Atlantic City, surpassing Borgata with relative ease. With net sales of over $218.3 million in the third quarter, Borgata made a strong comeback.
After converting the rent it pays to Vici Properties—the company that owns the resort and rents it to MGM—from an operating expense to a nonoperating expense, the property also modified its Q1 and Q2 reports. This indicated that company profits had exceeded initial reports by a large margin.
This year's revenue for Atlantic City casinos is $632.1 million, 4.2% less than the industry's total for the previous year. Because Borgata earned $178.1 million between January and September, it is the best casino.
Atlantic City YTD Profits for 2023
In terms of Atlantic City's casino earnings thus far in 2023, Borgata is the front-runner with a whopping $178.1 million in earnings. Hard Rock and Ocean come in second and third, respectively, with earnings of $97 million and $90.6 million.
Caesars, Harrah's, and Tropicana all continue to make significant contributions to the industry with their respective $78.5 million, $67.3 million, and $47.8 million in profits. A contribution to the economic prosperity of the city is also made by Golden Nugget, Resorts, and Bally's, whose profits range from $23.6 million to $9.2 million. The combined success of these establishments highlights a prosperous and competitive year for the gaming industry in Atlantic City.
Q3 2023 Revenues Beat Pre-Pandemic Estimates, Visitation Drops
In comparison to the third quarter of 2019, prior to the pandemic, the nine Atlantic Casinos fared better in the third quarter of 2019. The business earned roughly $239.4 million in profits and a net worth of $928.9 million during the third quarter of 2019.
The quantity of visits has decreased, though. While only 1,208,800 people stayed in Atlantic City casinos during the same quarter in 2018, 12858,000 did so in 2019. In Q3 2023, the average room cost $218, which was only $161 four years earlier. This indicates a significant increase in revenue for casinos.
In the third quarter, Atlantic City's gross operating profit and net sales both exceeded pre-pandemic levels. The third quarter saw "the third-best gross operating profit since 2008 and the second-best net revenue in five years," according to James Plousis, chair of the New Jersey Casino Control Commission.
15,520 resort hotel rooms were available at Atlantic City's casinos at the end of the quarter.Almost 86% of the time, there were renters.