Atlantic City Casinos Report Decline in Q3 2024 Revenue

By Matt Speakman,
Betting Expert at online-gambling.com

Matt Speakman Betting Expert at online-gambling.com

A die-hard fan of the Patriots, Matt Speakman is an expert on everything related to sports betting and DFS sites. Over the years, he has proven a valuable asset for our team at online-gambling.com. You can find Speakman's professional tips and tricks in any of his many articles on the website.

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Last updated: December 3, 2024

The New Jersey Division of Gaming Enforcement released an official report according to which the 9 Atlantic City brick-and-mortar casinos have generated a collective gross operating profit of $236.5 million. This marks a 13.8% drop from the same period in 2023. What are the reasons for this significant discount? Stay tuned to find out together.

The Rise of Online Gambling Platforms

The growing popularity and rapid legalization of online gambling across the country are arguably the biggest factors contributing to the decline in the revenue of land-based casinos. The shift was most notably felt following the COVID-19 pandemic, during which most gambling activities were transferred online.

In October 2024, internet gambling revenue in New Jersey reached a record $213.6 million, surpassing the $208 million mark set the previous month. However, the profit from such platforms is often shared with third-party providers, which reduces the net income for the casinos themselves. This means that the losses from brick-and-mortar establishments can’t be fully compensated.

Declining In-Person and Non-Gaming Revenues

We’ll start by pointing out that there are 9 Atlantic City casinos, including Borgata Hotel Casino and Spa, Tropicana Casino and Resort, Ocean Resort Casino, Hard Rock Hotel and Casino, Harrah’s Resort Atlantic City, Bally’s Atlantic City Hotel and Casino, Caesars Atlantic City, Golden Nugget Atlantic City, and Resort Casino Hotel.

Out of these 9 operators, only Borgata, Hard Rock, and Ocean have reported gains compared to pre-pandemic levels. The rest of the gambling establishments have, unfortunately, recorded a steady decline in gambling activities and revenue. Interestingly, non-gaming revenues from things like hotel stays and entertainment have also dropped by 5%.

“Consumer demand may have been an issue for Atlantic City’s casino operators in summer 2024,” said Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University.

Still, all nine Atlantic City casinos remained profitable, with Caesars and Hard Rock reporting improved numbers compared to Q3 in 2023. This proves that despite the significant challenges they’re facing, brick-and-mortar operators remain a staple of the global gambling industry. We don’t expect to see their demise anytime soon.

Increasing Operating Costs

Increasing operating costs, including utilities, employee salaries, and other essentials have also made it difficult for Atlantic City casinos to keep their revenue as high as previous years. Operators have been pressured to look for ways to attract new guests, which, for some operators, has meant reducing prices. In fact, the average hotel room rate was lowered by $17.

The Path Forward: Balancing Tradition and Innovation

Neither online nor land-based gambling is going anywhere, so the two must find a balance that allows them to co-exist. One thing, however, is certain – the competition in the industry is becoming more and more fierce every day, and operators must find ways to adapt, and fast.

To remain competitive and stabilize their profit, Atlantic City casinos must leverage the potential of digital platforms fully. This shift may involve reimagining entertainment offerings, leveraging technology for personalized customer engagement, and exploring more equitable revenue-sharing models for online operations.