Atlantic City Casinos Profit Declines: What’s Behind the Numbers? – Point Spreads

3 days ago0 100 2 minutes readGambling News

Imagine Atlantic City. Boardwalks, flashing lights, the constant clink of coins it used to be a gamblers paradise. But heres the betting news report that, while online gambling in New Jersey is booming, Atlantic Citys casinos actually saw their profits shrink in 2023.

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This has everyone scratching their heads. Numbers dont 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 Citys casinos are facing some tough challenges.

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 Citys 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 Citys casinos are facing stiff competition for your dollars. Even though theyre showering us with free stuff free rooms, meals, drinks, even chances to win its 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.

Lets 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 wasnt 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 isnt quite as rosy. Harrahs saw profits dip to $80 million, down almost 10%. Caesars and Ballys also experienced profit declines, with Caesars dropping to $51.7 million and Ballys coming in at $11.1 million.

However, its worth noting that Ballys 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%.

Heres 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.

Atlantic City casinos were less profitable in 2023 even with a boost from New Jerseys booming online gambling market. https://t.co/M8B2ybjWg6

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The debate over smoking regulations adds another layer of complexity to Atlantic Citys 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 Citys gaming sector remains uncertain.

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Atlantic City Casinos Profit Declines: What's Behind the Numbers? - Point Spreads