Atlantic City Sees Profit for the 3rd Consecutive Quarter
The remaining Atlantic City casinos have seen strong growth over the past year with reports showing continual growth for the third consecutive quarter.
While only seven casinos remain in Atlantic City, New Jersey, the area is hopeful as revenue reports are showing an upward trend for growth. The individual casinos have done well, both online and offline, with the most recent reports by the New Jersey Casino Control Commission showing that the area has seen double digit growth in gross operating profits as a whole for the third consecutive quarter.
Doing Well as a Whole
The Commission reported that the casinos in operation within Atlantic City have seen a profit increase of 16.2% during this year’s second quarter. For the second quarter, gross operating profits came in at $169.3 million. This is much more than the $145.7 million earned during the same period last year.
Casino Control Commission Chairman and CEO Matthew Levinson commented on the reports stating that revenues, profits and occupancy rates for Atlantic City are up. With everything that is currently going on in the area as well as what is going up, the future of the industry looks brighter each day, according to the CEO.
A Rough Few Years
Going into 2014, Atlantic City had 12 casinos in operation. Four closed that year including the Revel, a brand-new property that could not seem to gain any ground after opening. In 2016, the Trump Taj Mahal closed down so where there were once 12 casinos in operation it whittled down to 8 and then 7. Thankfully, the area has seen a nice turnaround. When looking at occupancy rates ending in June of this year, the numbers come in at just over 85% for casino hotels for a six-month time frame. This is almost 7% more than what was seen within the first six months of last year.
There may only be seven casinos currently in operation in the state but more is yet to come. Revel is set to reopen as TEN which should help the area’s bottom line. Also in the mix will be the Hard Rock Hotel & Casino Atlantic City. The Trump Taj Mahal was purchased by Hard Rock International and will open sometime next year. This will provide at least two more venues for the area and other developers are reportedly looking in to beginning business in Atlantic City which would help even further.
Division of Gaming Enforcement Director David Rebuck commented on the results by stating that so far, 2017 has shown ongoing stability in the revenues for the casino industry and an overall improvement when it comes to Gross Operating Profit. Rebuck pointed out that with the financial results combined with the renewed interest in the area, it continues to provide optimism for the casino hotels and overall tourism for Atlantic City.
Through the second quarter of the year, five of the seven remaining casinos were able to see an increase in gross operating profits. The Tropicana saw the biggest increase at 105% with $35 million in earnings. Resorts saw a large increase of 63% with $9.5 million in earnings while the Golden Nugget earned almost $17 million which is a 27% increase.
Caesars was up 25% with $45.6 million in earnings while the Borgata was able to see a 22% increase with $129 million in earnings. The only two venues to see a decrease in profits was Bally’s and Harrah’s. Bally’s was down to $16 million which is a 5% decrease and Harrah’s earned $50 million which is a decrease of 5.8%.