Atlantic City Casinos Profit Declines: What's Behind the Numbers?
$6,000 Welcome Bonus
Is America’s Playground Not as Fun Anymore?
Imagine Atlantic City. Boardwalks, flashing lights, the constant clink of coins – it used to be a gambler’s paradise. But here’s the betting news report that, while online gambling in New Jersey is booming, Atlantic City’s casinos actually saw their profits shrink in 2023.
This has everyone scratching their heads. Numbers don’t lie, and these numbers are showing a surprising reality for this iconic city. Is it the rise of online casinos? Maybe stricter smoking laws? Whatever the reason, Atlantic City’s casinos are facing some tough challenges.
Online Gambling’s Influence on Brick-and-Mortar Casinos
While betting online has witnessed exponential growth in New Jersey, the brick-and-mortar casinos in Atlantic City have struggled to maintain their profitability. Contrary to some beliefs, studies suggest that online sports betting activities often complement rather than cannibalize traditional casino revenue streams.
However, the recent decline in profits among Atlantic City’s casinos raises questions as to the extent to which online gambling contributes to overall industry dynamics.
According to Jane Bokunewicz, an expert at Stockton University, costs are increasing and Atlantic City’s casinos are facing stiff competition for your dollars. Even though they’re showering us with free stuff — free rooms, meals, drinks, even chances to win — it’s tough to keep the lights on.
This is making things tough for these iconic places and casino operators are wondering how they can bounce back.
“The same forces that might be tightening visitors’ purse strings — inflation, increased consumer prices — are also forcing operators to dig deeper into their pockets,” she said.
Winners and Losers
Let’s talk winners and losers in Atlantic City casinos for 2023. Borgata took the top spot with a cool $226.1 million in operating profit, followed closely by Hard Rock at $125.5 million.
Ocean wasn’t far behind with $117.2 million, a jump of nearly 22% from the previous year. Tropicana also saw a profit of $93 million, though that was down slightly from 2022.
The rest of the story isn’t quite as rosy. Harrah’s saw profits dip to $80 million, down almost 10%. Caesars and Bally’s also experienced profit declines, with Caesars dropping to $51.7 million and Bally’s coming in at $11.1 million.
However, it’s worth noting that Bally’s actually turned a profit in 2023 compared to a loss in the previous year. Resorts saw their profits plummet to $9.5 million, a significant drop of over 50%.
Here’s another interesting tidbit: only four casinos — Borgata, Hard Rock, Ocean, and Tropicana — managed to surpass their pre-pandemic profits from 2019. This could be partly explained by the well-deserved pay raises casino workers received through a contract reached in 2022.
Smoking Regulations: A Double-Edged Sword
The debate over smoking regulations adds another layer of complexity to Atlantic City’s gaming landscape. While some argue that banning smoking could enhance revenue and job prospects, citing successful precedents in smoke-free casinos in other states, casinos contend that such measures would place them at a competitive disadvantage.
With profitability already on the decline, the prospect of stricter smoking regulations raises concerns within the industry about potential revenue losses and job cuts. As stakeholders weigh the economic implications of smoking policies, the future trajectory of Atlantic City’s gaming sector remains uncertain.
For gambling news, odds analysis, and more, visit Point Spreads Sports Magazine.
