Atlantic City’s nine casinos posted nearly $731.3 million in gross operating profits in 2022, a decline of nearly 5% from a year prior.
According to data released Monday by the New Jersey Division of Gaming Enforcement, Atlantic City casinos and three internet licensees collectively reported a 31.6% decline in operating profit in the fourth quarter of 2022.
Net revenues exceeded $3.3 billion in 2022, an increase of 9.3% over 2021. In the last three months of 2022, the casinos generated just under $772 million (+1% vs. 2021 4Q) in net revenue, according to the NJDGE.
Compared to 2019, last year’s gross operating profits were up 19.3% and net revenue increased by 4.5%.
The hotel occupancy rate went up last year (73.4% in 2022 vs. 67.6% in 2021), as did the average room rate ($177.89 vs. $172.88).
Breaking down 2022 profits of Atlantic City casinos
Hard Rock Hotel & Casino Atlantic City was the only one of the city’s gambling parlors to post a double-digit percentage uptick in annual profits, according to data from the DGE. Hard Rock’s $128 million in 2022 is a 19.8% jump from 2021.
Gross operating profit reflects earnings before interest, taxes, depreciation, amortization, charges from affiliates and other miscellaneous items. It is a widely-accepted measure of profitability in the Atlantic City gambling industry.
Net revenue consists of gambling revenues after promotional allowances (free/match play) plus rooms, food and beverage, entertainment and other non-gaming amenities.
Ocean Casino Resort also posted an annual increase in operating profit last year. The Boardwalk casino’s $96 million in ‘22 represents a 5.5% rise from a year before. In 2018 (with just six months of operation), Ocean posted more than $20 million in operating losses.
Bally’s Atlantic City reported an 85.7% increase in year-over-year GOP, but the casino posted operating losses of $1.9 million, which was an improvement from more than $13.1 million in losses in 2021.
Borgata Hotel Casino & Spa, the Atlantic City market leader, reported a little more than $140 million in GOP last year. That figure is down almost 20% from 2021 and more than 33% from pre-pandemic 2019.
Other Atlantic City casinos see declining trend
Caesars Entertainment’s three Atlantic City casinos all posted declines in annual GOP in 2022. Caesars AC ($60.4 million, -2.7%), Harrah’s Resort AC ($89.4 million, -10.1%) and Tropicana AC ($109.7 million, -7.6%) saw profits drop in 2022, but Caesars Interactive’s annual GOP nearly doubled ($16.6 million to $32.8 million).
Resorts Casino Hotel dipped from $27.6 million in GOP in ‘21 to just over $21 million last year. Resorts Digital’s profits went up 2.8%, from $14.9 million to $15.4 million.
Golden Nugget Online Gaming surrendered its online casino and sports betting operations in May. All internet gaming revenue and profits from the date of the license surrender are reported by Golden Nugget Atlantic City. The change distorts any year-over-year comparisons for both GNOG and GNAC.
For 2022, GNAC reported $30.6 million in operating profits, while GNOG posted $9.3 million. In 2021, the figures were $35.6 million and $32.9 million, respectively.