Atlantic City’s casinos are healthy once again!
After the closure of 5 of 12 casinos in 2014, the seaside gambling resort has been on an uphill battle ever since. After 3 years of hard work, the seven surviving casinos can finally breath a sigh of relief, as gross operating profits for Atlantic City’s casino industry were $139.2 million during Q1 of 2017. Thats an increase of 30% compared to the same time last year. This was the latest news in a series of positive financial reports, and resulted in a top New Jersey gambling regulator to make a bold proclamation “Atlantic City’s casinos are healthy once again.”
“If there were any doubt about the health of Atlantic City’s casino industry, these results should lay them to rest,’ said Matt Levinson, chairman of the New Jersey Casino Control Commission. “It’s clear to me that the industry has stabilized and operators are showing healthier bottom lines. With the summer upon us, there are a host of concerts, festivals and other events over the next several months that should help casinos continue to grow.”
Out of the seven casinos, the Borgata had the highest operating profit at $61.4 million, which was an increase of almost 29% from the same period the year before. Taking second place with an operating profit of $23.7 million was Harrah, which was actually a decrease of 11.3% compared to this time last year. Caesars made the 3rd most operating profit at $20.1 million which was up 31.6% from Q1 of 2016.
The 4th most operating profit generated was by the Tropicana, who had more than double the previous year’s Q1 report to reach $16.2 million. Making less than the previous year was The Golden Nugget, who was down 7.7% from the previous year, totalling up $6.2 million. The worst performing casino interns of operating profit compared to previous year was Bally, who was down 19.9%, coming in at $4.5 million. The least operating profit made of $4 million by Resorts was in fact the biggest improvement from the previous year, which was nearly an increase of 1000%.
In total, the casinos took in $816.7 million for the first 3 months of the year, an increase of 1.7% compared to the $803.1 million from the same period the year before.
Hotel rooms accounted for $83.7 million, of which most was generated by The Borgata, a decrease of 5.3% from $88.4 million in previous year. Resorts had the highest occupancy rate for the quarter at 88.7 percent, while the Golden Nugget had the lowest at 71.8 percent.
Casino win accounted for 74% of the total Atlantic City casino industry revenue in Q1, compared to the 40% contribution by Las Vegas casinos to total revenue.