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The basics:

• Atlantic City casino profits drop 22.9% in Q1 2026
• Net revenue slips 0.6% YOY
• Borgata leads Atlantic City casinos in revenue, profit
• Caesars only casino with YOY gains in revenue, profit

Atlantic City’s casino industry reported a sharp decline in profits during the first quarter of 2026 despite relatively flat overall revenue, as rising operating costs and economic pressures squeezed margins ahead of the summer tourism season.

According to data released May 22 by the New Jersey Division of Gaming Enforcement, the industry posted $725.6 million in net revenue for the quarter ended March 31, down 0.6% from the same period in 2025. Gross operating profit fell 22.9% year-over-year to $104.7 million.

Among the casinos, Borgata Hotel Casino & Spa emerged as the market leader in both revenue and profit, generating $182.3 million in net revenue (up 4.7%) and $39.8 million in operating profit. However, profits there still declined 17.6% from last year.

Hard Rock Hotel & Casino Atlantic City followed, with a net revenue of $127.9 million (down 5.3%) and profit of $19.8 million (down 24.9%); and then Ocean Casino Resort, which posted $115.8 million in net revenue (up 2.4%) and $18.8 million in profit (down 16.6%).

The only property to post year-over-over gains in both revenue and profit was Caesars, $55.4 million (up 10.6%) and $4.9 million (up 40.2%), respectively.

Pressure’s on

Jane Bokunewicz, faculty director at Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism (LIGHT), Stockton University School of Business, said the latest figures show that headline gaming revenue numbers do not fully reflect the financial challenges facing operators.

“Gross gaming revenue continues to be a poor indicator of the industry’s performance as first-quarter net revenues and gross operating profit tell a story of greater challenges than what might have been suggested by the positive gross gaming revenue reported January through March 2026,” Bokunewicz said.

She added that first-quarter profits declined for the third consecutive year, noting that local and global economic pressures seem to be catching up to Atlantic City’s casino industry.

Industrywide margins continue to narrow. Whether this will be a temporary or long-term effect is difficult to say given the many variables at play – especially those that are completely out of operator’s hands …
— Jane Bokunewicz, faculty director, LIGHT

Bokunewicz also said increased regional competition is forcing casinos to spend more on marketing and promotions to maintain market share while inflation and higher fuel costs continue to pressure consumers.

“Industrywide margins continue to narrow,” she said. “Whether this will be a temporary or long-term effect is difficult to say given the many variables at play – especially those that are completely out of operator’s hands like inflation and the increased cost of fuel heading into what is historically the peak tourism season.

Improved occupancy

James Plousis, chairman of the New Jersey Casino Control Commission, said: “Atlantic City reported flat net revenue in the first quarter, a reflection of ongoing general economic pressure. The casino hotels also encountered their highest first quarter costs and expenses in nine years, significantly constraining reported gross operating profits.”

Still, Plousis pointed to more than $1.3 billion in capital investments made by casino operators over the past five years, including upgrades to gaming floors, hotel rooms, dining and entertainment offerings.

“During my recent off-season tours of each casino-hotel, it was clear that notable improvements have continued and a high level of commitment to the market has not wavered,” said Plousis. “Atlantic City is ready for an exciting summer season.”

Despite weaker profits, casino hotel occupancy improved slightly during the quarter. Industrywide occupancy reached 64.6%, up 1.7% from the first quarter of 2025.

Hard Rock AC posted the highest occupancy rate (78.2%), followed by Ocean Casino Resort (74.6%). Ocean reported the highest average room rate at $234.42 per occupied room, while the average rate per occupied room was $161.03.