New Jersey Q3 Casino Earnings Fell By 13%, Most Exceed Pre-COVID Levels
Despite a Q3 earnings decline of more than 13% for Atlantic City’s casinos as compared to a year earlier, positive data was revealed by New Jersey gaming authorities on November 22.
The nine casinos together outperformed their level of profitability in the Q3 of 2019 before the coronavirus pandemic broke out, according to earnings data from the state Division of Gaming Enforcement.
Additionally, this quarter’s results for six of the nine separate casinos exceeded those of the same period in 2019.
Casino executives in Atlantic City have developed a serious fascination with comparing the state of their operations to the pre-pandemic period as they work to advance what they see as their primary business, winning money from in-person gamblers, above where it was before COVID.
In the Q3 of this year, the casinos reported a combined gross operating profit of $269.2 million, a 13.4% decrease from the same period last year. The figures do not include the revenues of online casino NJ apps and websites.
In the AC gaming market, gross operating profit, which shows earnings before interest, taxes, and other costs, is a commonly used metric of profitability.
The summer of 2022 confronted several challenges, according to Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, which researches the gaming market in Atlantic City. These challenges include a lack of employees and supplies, rising gas prices, and inflation.
Hard Rock recorded the most profit at nearly $44 million, a 4.8% decrease from the year prior.
Mike Sampson, senior vice president of operations at Hard Rock, commended the company’s dedication to live entertainment, which included over 40 shows during Q3, and outstanding results in wagering at slot machines and table games.