Atlantic City Casinos’ Bottom Line Drops 1.3% in Second Quarter of 2024

Atlantic City’s casinos struggled during Q2 2024, according to figures released by the New Jersey Division of Gaming Enforcement.

The regulator’s report revealed that the nine casinos and two online gaming providers combined to generate $178.4 million in operating profit, a 1.3 percent year-over-year decline.

Every casino finished Q2 with a positive profit margin, though six of them were less profitable than they were during the same time a year ago.

Fewer visitors

The fleeting casino numbers fly in the face of the state’s flourishing sports betting market, particularly its online sports betting sector. 

Many casino owners had hoped that Q2 would result in gaudy numbers for the casinos due to the influx of tourism during the summer months. Ultimately, that scenario did not play out as they hoped.

“While many were hopeful that the summer of 2024 for Atlantic City casinos would see a rebound in drive-in visitors after last year’s trend of people taking their 'dream vacation' and flying to destinations, the July in-person gaming numbers suggest that is not the case,” said Jane Bokunewicz, director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism.

Bokunewicz said that one possible cause for the disappointing quarter was the increase in air travelers. 

Many travelers were hesitant to travel via airplane during and immediately after the onset of the global pandemic, instead opting for travel destinations they could drive to. 

A report released by the Transportation Security Administration stated there were 32 million air travelers between the end of June and the Fourth of July weekend alone.

"Post-pandemic, many people in the region have built up aspirations to go on extended vacations abroad and out of the area,” casino industry lobbyist Bill Pascrell III added.

Sports betting thrives, casinos struggle

While Atlantic City casinos lowered their bottom line from where it was a year ago, they generated 1.3 percent more combined revenue than they did during Q2 2023.

The Borgata produced $54.3 million in operating profit, the largest amount of any casino and a 15.5 percent increase from 2023. Hard Rock was second ($35.4 million, up 16.3 percent), followed by Tropicana ($23 million, down 7.7 percent).

Ocean Casino Resort earned $16 million, down 33.2 percent; Harrah’s earned $15.7 million, down 13 percent; Caesars earned $14.6 million, down 4.5%; Golden Nugget earned $6.4 million, down nearly 17%; Bally’s earned $2.7 million, up more than 49%; and Resorts earned $1.6 million, down 54%.

The combined earnings totaled $33.7 million, down close to five percent from Q2 2023. 

While the casinos are on a downswing, online gambling revenue hit $195 million during July, a 26 percent year-over-year increase according to the New Jersey Division of Gaming Enforcement. 

Sports betting was responsible for $80 million of the revenue total, a 31.2 percent increase on July 2023.