Atlantic City Casinos’ Profit Slides To $135.4 Million For Q1

Increased costs at the Borgata outpaced its gains in revenue, fueling overall dip
Atlantic City Q1 2023 revenue report

The New Jersey Division of Gaming Enforcement reported Atlantic City casinos’ operating profit of $135.4 million for the first quarter of 2023, a 14.8% decline compared to the same period last year.

Much of the difference can be attributed to a sharp drop in operating profit at the Borgata, usually the top revenue generator among the state’s nine casinos and two online platforms. The Borgata reported $22.8 million in operating profits for the first three months of the year, but that was down 50.3% from 2022 and enough to drop it behind Ocean Casino Resort for the top spot.

Ocean reported $23.6 million in operating profits, up 27.6% year-over-year, to claim first for the quarter. Hard Rock narrowly missed pipping Borgata for second, totaling close to $22.2 million as its quarterly figure dipped 17.5%.

Despite the decline in operating profits, there were two pieces of positive news, as net revenue climbed 4.6% to $756.6 million for the first quarter and hotel occupancy was 65.1%, an increase of 2.1 percentage points from the opening three months of 2022.

Increased costs eat into Borgata’s bottom line

Though the Borgata’s net revenue was up 14.7% year-to-year to $186.9 million for the first quarter, costs surged 40.3% higher to $164 million in the same period.

General and administrative costs were 65% higher at $85.2 million, while expenses for hotel rooms, food, and beverages were up 26.2% to $39.1 million. The Borgata, though, led all venues in net income with close to $11.9 million, up 19.6% compared to the first quarter of 2022.

Ocean Casino Resort had a 20% uptick in net revenue to $106.2 million, helped by a 16.9% increase in casino revenue to $58.9 million, but its expenses increased at a more reasonable percentage compared to the Borgata. Ocean’s general and administrative costs were up 10.5% to $32.1 million, and expenses for food, beverages, and hotel rooms climbed 28.1% to $27.5 million.

Hard Rock’s year-over-year decline was due mostly to a sharp drop in casino revenue, as the $59.1 million reported for the first quarter was off 25.5% compared to last year. That contributed to the $124.7 million in net revenue being 4.4% lower compared to 2022. Hard Rock’s expenses were nearly flat year-over-year, dipping slightly to $102.5 million.

Bally’s ekes out a quarterly profit

In terms of year-over-year improvement measured in dollars, Bally’s took top honors as the $88,000 in quarterly profit was an improvement of $6.9 million compared to 2022, when it posted a first-quarter loss of $6.8 million. The turnaround was fueled by a 46.7% jump in casino revenue to $26.6 million and a 29.8% increase in hotel rooms revenue to $10.2 million. Bally’s also had an 8.9% decline in general and administrative costs to $14.5 million, a decrease of roughly $1.4 million versus last year.

Resorts was the only venue to report a quarterly loss at minus-$284,000. Its casino revenue increased 3.4% ($818,000) to $24.8 million, but general and administrative costs increased by $1.3 million. Resorts’ digital property had a 5.9% rise in operating profits to just shy of $8 million.

The state’s other online platform, Caesars, saw operating profits tumble 13.2% to $6.8 million. Part of the overall year-over-year decline in revenue can also be attributed to Golden Nugget’s online platform surrendering its online license last May. It generated $6.7 million in revenue in the first quarter of 2022.

Photo: Getty Images


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