Atlantic City Casino Industry Profits Dropped 9.6 Percent in First Quarter of 2024
The Atlantic City casino industry suffered a setback in the first quarter of the year. Its profits dropped around ten percent, and only two of the nine casinos earned higher profits than in the first quarter of 2023.
Compared to the first quarter of 2023, the nine casinos’ gross operating profit for January–March 2024 was $140.4 million, a substantial decrease of 9.6 percent. The overall profit was $155.4 million, down 8.7 percent from the previous year when internet-only firms were the only ones included.
Software sportsbook states that Lloyd Levenson Institute director Jane Bokunewicz of Stockton University said that several reasons, including rising costs, inflation, and the possibility of a change in revenue mix toward traditionally lower-margin industries like food and lodging, may be to blame for the slow profits.
Atlantic City Casino Industry Issues
New Jersey Casino Control Commission chairman James Plousis had similar views, pointing to labor contracts that increased pay for casino employees and the general increase in the cost of commodities as causes.
According to a sportsbook pay per head authority, profits increased for certain casinos. Ocean’s earnings increased by 1.2 percent to $24 million, and Hard Rock’s profit increased by 18.3 percent to $26.2 million. However, Resorts lost $1.2 million, and Bally’s lost $2.5 million in operational funds.
Atlantic City casinos have it tough during the winter months, trying to stay profitable while also worrying that they will lose customers to rivals in New York City or North Jersey. The city faces competition not just from other states but also from those planning to open casinos in the New York metro region.
Nearby casinos in New York and Philadelphia provide further competition for New Jersey. Gambling in Atlantic City faces additional competition from proposed New York City area casinos, including one at Citi Field in Queens and another at Hudson Yards in Manhattan. These projects might cost as much as $12 billion.
According to reports, a coalition of Atlantic City casino employees is pushing for a total smoking ban across the casinos. They have taken legal action to challenge a statute that exempts casinos from smoking indoors and has lobbied state lawmakers to enact a smoking ban.
The smoking ban controversy highlights the complicated relationship between commercial interests, business rules, and public health concerns. As parties persist in tackling these concerns, the conclusion of this discussion will greatly affect the future of Atlantic City’s thriving casino sector.
Atlantic City 2023 Tax Revenue
The Casino Association of New Jersey and the Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism at Stockton University reported that in 2023, the Atlantic City casino sector earned $467 million in gross gaming tax income.
Officials revealed this on Wednesday, according to the Press of Atlantic City, and it’s a 12% rise over the last peak in 2006.
The industry was a major employer, employing 22,634 people. The region’s most disadvantaged citizens received a record $504 million in assistance.
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