The basics:

• Atlantic City Q2 net revenue hit $837.2M, up 0.9%
• Gross operating profit rose 3.3% to $184.3M in Q2
• Borgata, Hard Rock and Ocean Casino led performance
• Hotel occupancy rates remained steady but slightly lower

The state Division of Gaming Enforcement’s second quarter gaming report showed some mixed results.

“Atlantic City’s second quarter net revenue and gross operating profit improved in comparison to the same period last year,” said New Jersey Casino Control Commission Chairman James Plousis in Aug. 22 remarks.

Report highlights, including year-to-date for the first six months of 2025 (with year-over-year trend):

• Q2 2025 net revenue: $837.2 million (up 0.9%)
• Q2 2025 gross operating profit: $184.3 million (up 3.3%)
• First six months 2025 net revenue: $1.57 billion (down 2%)
• First six months 2025 gross operating profit: $320.7 million (down 3.9%)

Top-performing casinos:

• Q2 net revenue:
  • Borgata: $210.9 million (up 7.9%)
  • Hard Rock: $149.7 million (down 4.3%)
  • Ocean Casino: $130 million (up 14.5%)
• Q2 gross operating profit:
  • Borgata: $63.1 million (up 16%)
  • Hard Rock: $33.3 million (down 6.1%)
  • Ocean Casino: $26.8 million (up 67.9%)
• First six months, net revenue:
  • Borgata: $385.1 million (up 2.8%)
  • Hard Rock: $284.7 million (down 1.8%)
  • Ocean Casino: $243.1 million (up 5.5%)
• First six months, gross operating profit:
  • Borgata: $111.3 million (up 4.9%)
  • Hard Rock: $60.3 million (down 2.3%)
  • Ocean Casino: $49.3 million (up 23.6%)

Hotel occupancy rates:

• Q2: 72.6% (down 0.7%)
• First six months: 67.8% (down 1.3%)
• Q2: Highest occupancy rate:
  • Hard Rock: 86.6% (153,937 occupied room nights)
  • Ocean Casino: 85.9% (145,465 occupied room nights)
  • Caesars: 82.3% (84,553 occupied room nights)
• First six months: Highest occupancy rate:
  • Hard Rock: 81.9% (290,997 occupied room nights)
  • Ocean Casino: 78.6% (264,742 occupied room nights)
  • Caesars: 74% (151,187 occupied room nights)

“Net revenue recorded its best second quarter in six years and gross operating profit was the highest second quarter in four years,” Plousis continued. “All operators were profitable, despite continuing pressure from higher costs for the goods and services they purchase.”

Trends continue

Jane Bokunewicz, faculty director of the Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism (LIGHT), Stockton University School of Business, said the second quarter saw a continuation of trends from the first quarter.

“Although gross gaming revenues increased more than 18% in April-June 2025 compared to the same period in 2024, this growth translated to a less than 1% increase in quarter over quarter net revenue,” said Bokunewicz. “Gross Operating Profit (GOP), an indicator of the industry’s overall performance, trended upward for the quarter, however, results for individual properties varied greatly.

“As for the year-to-date, slight increases in second-quarter net revenues and GOP were not nearly enough overcome the 15% lag in GOP observed at the end of the first quarter. Six months into 2025, the Division of Gaming Enforcement reports a nearly 4% decline in GOP compared to the same period in 2024 – which itself was nearly 5% behind the same period in 2023.”

Putting money into marketing

Bokunewicz said that in a mature market with a slowing growth rate – such as Atlantic City’s brick-and-mortar gaming, a common strategy is to increase spending on marketing to entice visitation.

“With Atlantic City casinos competing locally and regionally for the same customers, this could be a contributing factor in suppressing growth in net revenue and gross operating profits,” Bokunewicz explained.

She noted that this is not occurring in isolation.

“The cost of doing business continues to go up at a time when the business dynamics of popular internet gaming and sports wagering products may mean that Atlantic City’s casino operators are keeping less of the gross gaming revenue than ever,” said Bokunewicz.

Raising the bar

Plousis added, “Quarterly results from the spring season, coupled with July’s strong monthly figures released last week, reveal that Atlantic City has been competing well for regional gaming and leisure tourists.”

He pointed to the efforts being made by the properties. “The casino hotels have raised the bar for positive visitor experiences, with more than $1.1 billion reinvested over the past four years to elevate the properties with first-class gaming, leisure, dining, and entertainment.”