Q3 2023 Earnings at Atlantic City Casinos Drop by 7.5%
New Jersey gaming authorities reported that revenue from Atlantic City’s casinos and two online-only businesses came to $281.2 million in the Q3 of 2023, a 7.5% decrease from the same time in 2022.
While combined together, the nine AC casinos exceeded their profitability from the third quarter of 2019, prior to the COVID-19 pandemic, according to October 2023 NJ internet gaming revenue released by the State Division of Gaming Enforcement. However, this was primarily because of the two newest casinos’ strong performance and another one’s accounting change.
In Q3, Hard Rock reported a gross operating profit of $44.3 million, an increase of less than 1%. The Ocean Casino Resort made $43 million in profit, a gain of more than 10% over the previous year.
Gross operating profit, which is a commonly used indicator of success in the Atlantic City casino markets, shows profits before depreciation, taxes, interest, and other expenditures.
Despite negative consequences from a cybersecurity problem impacting the parent businesses of four casinos, Atlantic City’s Q3 gross operating profit was the third-best since 2008, according to James Plousis, chairman of the New Jersey Casino Control Commission.
A $73.5 million profit was announced by Borgata, a 1.7% decrease from 2022. However, according to the Division, Borgata recently reclassified certain rent payments as non-operating expenses under accounting terms rather than operational expenses.
According to the division, this led to a notable rise in the casino’s declared gross operating earnings.
Tropicana saw $36.7 million in revenue, down 11.5%; Harrah’s revenue amounted to $30 million, down over 13%; Caesars’ revenue reached $21.1 million, down nearly 18%; Golden Nugget’s revenue reached $11 million, down nearly 4%; Bally’s saw a revenue of $7.3 million, down over 32%; and Resorts’ saw a revenue of $7.2 million, down nearly 43%.
