The decline in winnings at the Atlantic City Casino

This content was created in collaboration with Bazoom Group.

While the Division of Gaming Enforcement has reported a total 7.5% decline in profits for all nine casinos and two internet-only casinos, the future of this industry still looks hopeful. To put it in numbers, this third quarter was compared to the same period as last year, and while all of these casinos were not as profitable as last year, they still are compared to the recent COVID era.

Many experts agree that we are currently seeing a stabilization in the casino industry. Last year could be seen as a big relief after the relaxed regulations caused by Covid and this year, while still great, cannot compare to the previous rush to the casinos. Combined with new investments and regulations, it is easy to deduce why the profits failed to materialize.

Let’s start with the online-only casinos, where Caesars Interactive Entertainment NJ and Resorts Digital have had a tough year, competing with non-US alternatives and nine physical counterparts. Caesars reported a profit of just over $5 million, down 18% from a year ago, and Resorts Digital posted a painful 50% drop, earning just $1.6 million. All told, online and physical casinos earned $632 million, which, while impressive, is still a 4.2% decline from last year.

So why are there such drastic differences between gross profit and actual profit? Gross profit must be reduced by taxes, fees, interest, adjusted for inflation and other expenses. Some expenses are also 1000 new employees in the industry, which increases wage costs. Now we are seeing the impact of the new labor law, signed and put into effect in July 2022.

The entire industry may be slightly in deficit, but the individual cases are mixed.

The Borgara was the most lucrative with a profit of over $70 million, but was still slightly below 1.7% compared to 2022. Their accounting department has stated that they are making internal changes to the way they deal with their avoid expenses. Their rental expenses have shifted from operating expenses to non-expenses, and that is one of the reasons for the slight increase in gross profit.

This is followed by Hard Rock Casino with a reported $44.3 million, an ever-so-slight increase of over 1% from 2022. Ocean Casino Resort also came close with a profit of $43 million, a staggering 10% increase.

Getty Images/iStockphoto

Getty Images/iStockphoto

Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, confirmed that we may be entering a stabilization period as the industry still earns more in both gross profit and net sales as we return to the pre-2019 pandemic. With that, all other casinos reported losses ranging from large losses of over 40%, from Resorts Casino Hotel with a profit of $7.2 million to The Tropicana with over $36.5 million, a decline of over 11%.

Harrah’s reported a profit of $30 million (down 13%), Caesar’s posted a profit of $21 million (down 18%), and Golden Nugget’s books showed a profit of $11 million (down 4%) and Bally’s reported $7.3 million in profits (down 32%).

Overall, this mixed performance contributed to the overall loss, but many casinos and hotels are looking positively at non-gaming revenue picking up the slack. All Atlantic City casinos and hotels have made significant investments in their personal resort experiences, recognizing that this could be the driving factor for increased visits and therefore higher profits.

These profits amounted to almost $400 million (or $399.6 million to be precise) in non-gaming revenue, showing that investments in this area are starting to pay off and could help increase profits in 2024 !

If you or someone you know has a gambling problem, call 1-800-GAMBLER.

Source link