Q2 net revenue at Atlantic City casinos up 14.1% over same quarter last year

The New Jersey Division of Gaming Enforcement on Monday reported the state’s casinos and online affiliates posted net revenue totaling $828.8 million for the second quarter. This reflects a 14.1% increase over the same quarter last year and a gross operating profit of $183.6 million.

For the first six months of 2022, net revenue was $1.5 billion, an increase of 19.9% from the same period last year, and gross operating profit was $339.3 million, an increase of 20.9% compared to the same period last year.

“Those revenues represented 46% of total net revenue in second quarter 2019 and 39% in second quarter 2021,” Jane Bokunewicz, faculty director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism, Stockton University School of Business, said. “At $374 million, revenues from lodging, food & beverage, entertainment and other nongaming sources generated 44.4% of total revenue for the quarter. This demonstrates a return to pre-pandemic behaviors for in-person casino patrons and further supports operators’ recent capital improvement investments. These nongaming amenities, as well as the gaming ones, diversify the casino product in Atlantic City and the region.”

While Atlantic City’s casinos performed well in second quarter 2022, in a positive indicator for the city, much of the growth was generated by the city’s two newest casinos, Hard Rock Hotel & Casino Atlantic City and Ocean Casino Resort.

“Although gross operating profit figures were relatively flat in the second quarter, during
that time period, the casino hotels were making important and significant investments in their facilities to create new and exciting experiences for their guests to enjoy. Those capital investments are critical to ensure the long-term appeal of Atlantic City as a resort destination,” Casino Control Commission Chairman James Plousis remarked.

Plousis said the growing market demonstrates that Atlantic City is delivering on its promise to provide the first-class experiences that are demanded by gaming and leisure travelers.

“Gross operating profit was essentially flat compared to 2021, but exceeded 2019, which indicates that casino operators have continued to leverage lessons learned during the pandemic to balance expenses with consumer demand,” Bokunewicz said.

Borgata posted the largest quarterly operating profit, at $42.2 million, up 4.6% from a year ago. Hard Rock earned $38 million, up nearly 46% from a year ago. Tropicana earned $30.3 million, up 8.2% from a year ago, and Harrah’s earned $21.3 million, down 14% from a year earlier.

The Ocean casino earned $15.5 million, down 8.1% from a year ago; Caesars earned $14.1 million, down 23.6%; Golden Nugget earned $9.1 million, down 14.7% from a year ago; and Resorts earned $6.2 million, down 15.1% from a year earlier.