The state Division of Gaming Enforcement (DGE) released its quarterly and year-end results April 7.

In 2024, the casino operators reported net revenue of $3.3 billion – down 0.5% from 2023 – and a gross operating profit of $709.1 million, a 9.2% drop from 2024.

“Another year of record high gross gaming revenue at $5.7 billion failed to translate into significant net gaming revenue gains for Atlantic City‘s casino operators,” said Jane Bokunewicz, faculty director of the Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism (LIGHT), Stockton University School of Business, in her analysis of the report.

“While managing to stay in the black and deliver a total year-end net revenue just 0.5% shy of 2023, increases in expenses and drags on consumer demand (initially observed in the third quarter and following through into the fourth) likely resulted in the disproportionate decline of 9.2% in year-over-year gross operating profit for Atlantic City’s casino operators.”

Every casino was profitable in 2024, but increased costs were not unexpected and are apparent when profits are compared to other recent years.
– James Plousis, NJ Casino Control Commission chairman

“Atlantic City reported its second-best net revenue result in seven years, down slightly compared to the modern high that was set in 2023,” said New Jersey Casino Control Commission Chairman James Plousis. “Every casino was profitable in 2024, but increased costs were not unexpected and are apparent when profits are compared to other recent years.”

“Of note, at $709.1 million, gross operating profit for year-end 2024 still managed to improve on pre-pandemic year-end 2019 at $593.9 million (total as reported in DGE fourth quarter 2020 report),” Bokunewicz said.

Key figures from the report include:

• Q4 net revenue: $768.9 million down 1.7%
• Q4 gross operating profit: $132.5 million down 10.8%
• Hotel occupancy in Q4: 65.6% down 0.9%
• Top performing casinos in Q4 (net revenue):
  • Borgata – $190 million down 0.2%
  • Hard Rock – $139.9 million down 0.3%
  • Ocean Casino – $123.4 million up 3%
• Top performing casinos in Q4 (gross operating profit):
  • Borgata – $42.1 million down 12.3%
  • Hard Rock – $28.4 million down 0.6%
  • Ocean Resort – $24.9 million down 6.4%
• Top performing casinos in Q4 (occupancy rate):
  • Ocean Resort – 79.7%
  • Hard Rock – 79%
  • Caesars – 73.2%

• Hotel occupancy for 2024 year-end: 72% down 1%
• Top performing casinos for year-end 2024 (net revenue):
  • Borgata – $782.9 million down 0.3%
  • Hard Rock – $595.7 million up 4%
  • Ocean Resort – $500.7 million up 1.8%
• Top performing casinos for year-end 2024 (gross operating profit):
  • Borgata – $208.6 million down 7.7%
  • Hard Rock – $135.5 million up 7.9%
  • Ocean Resort – $101.3 million down 13.6%
  •  Just two casinos saw their gross operating profit increase between 2023 and 2024 Hard Rock (up 7.9%) and Caesars (up 10.7%)
• Top performing casinos for year-end 2024 (occupancy rate):
  • Hard Rock – 86.7%
  • Ocean Resort – 82.2%
  • Caesars – 80.9%

Decreased occupancy, increased costs

“In a period of potentially flattening brick-and-mortar market growth, as operators compete to maintain customer loyalty, visitation, and spending, higher promotional expenses and higher operating costs can be expected,” said Bokunewicz. “However, continued growth in the internet gaming and sports wagering markets (which contributed to a year-end contribution of more than half a $1 billion in gross gaming revenue tax from Atlantic City’s casino industry) were not enough to offset this and losses in gross operating profit from other areas.”

Bokunewicz also noted the hotel occupancy trends.

“The drag on consumer demand seen in the third quarter of 2024 in the form of decreased room rates (believed to be the result of operators adjusting prices to balance reductions in demand due to the lack of several large-scale events in the city) manifested again in the fourth quarter,” she said.

“Although already a slow period for the resort, occupancy rates or Atlantic City’s casino hotels were down slightly in comparison to the same period in 2023 despite a notable decrease in the average daily room rate ($160.27 in fourth quarter 2024 compared to $164.04 in the same period of 2023).”

Despite the challenging economic conditions and cost environment, Plousis lauded the operators for their reinvestment efforts. He also expressed excitement for the busy season ahead.

He said, “The casinos have not shied away from investing in their properties and adding new experiences in anticipation of welcoming guests back to the shore in the upcoming summer season.”