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Atlantic City’s casino industry saw revenue remain relatively stable in the first quarter of 2026, but rising expenses sharply cut into profits, according to new figures released by the New Jersey Division of Gaming Enforcement.
The city’s nine properties reported $725.6 million in net revenue during the quarter, down 0.6% from the same period in 2025. Gross operating profit totaled $104.7 million, a steep 22.9% year-over-year decline.
Gross operating profit is viewed as a key measure of profitability because it reflects earnings before interest, taxes, depreciation, and other expenses.
The decline continues a trend of shrinking profits for Atlantic City casinos as operators grapple with inflationary pressures, increased labor costs, and growing competition from online gaming and neighboring states.
Rising costs weigh heavily on operators
According to the DGE report, operators faced their highest first-quarter operating costs in nearly a decade.
Despite the overall downturn, hotel performance improved slightly. Hotel occupancy reached 64.6% in the first quarter, up 1.7 percentage points compared to Q1 2025.
Atlantic City properties continue relying heavily on non-gaming amenities and online partnerships to drive business. However, New Jersey online casinos and New Jersey sportsbooks arrangements can complicate profitability because revenue is often shared with outside operators and affiliates.
The DGE noted that financial comparisons should be viewed carefully because online gaming and sports wagering revenue are reported differently depending on each casino’s partnership structure.
Online gaming remains major contributor
While brick-and-mortar profitability weakened, New Jersey’s online gambling market continued posting strong numbers during the quarter. New Jersey online casino revenue reached $272.1 million in March statewide, highlighting the continued importance of digital gaming to Atlantic City license holders and their partners.
Atlantic City properties are also facing long-term uncertainty from potential downstate New York casino expansion projects, which many analysts believe could eventually siphon customers away from New Jersey’s gaming market.
Still, operators remain hopeful that summer tourism and continued investment in entertainment, dining and hotel upgrades will help stabilize results later in 2026.
