HomeCasinoAtlantic City Casino Profits Decline Five Percent in 2022

Atlantic City Casino Profits Decline Five Percent in 2022

Posted on: April 11, 2023, 08:20h. 

Final up to date on: April 11, 2023, 08:53h.

Atlantic Metropolis casinos generated considerably extra income in 2022 than the 9 properties did in 2021, however their backside strains collectively declined practically 5%.

Atlantic City casino profits gaming industry
The Atlantic Metropolis Boardwalk is pictured on Thursday, July 7, 2022. Atlantic Metropolis casinos noticed their income decline by virtually 5% final yr. (Picture: NJ Advance Media)

The New Jersey Division of Gaming Enforcement (DGE) issued web income and gross working experiences for the 9 Atlantic Metropolis casinos on Tuesday. The information offered regarding numbers, as solely two of the 9 casinos reported larger income in contrast with 2021.

Full-year web income was greater than $3.3 billion, a 9.3% year-over-year soar, however gross working income dropped 4.6% to $731.2 million. The revenue decline represents an earnings lack of about $35.6 million.

Borgata, the richest property in Atlantic Metropolis, noticed its working revenue decline greater than 19% to $140.3 million.

Laborious Rock and Ocean, the latest casinos on the town that each opened in June 2018, had been the 2 winners. The Boardwalk resorts respectively noticed income enhance by virtually 20% and 6% to $128 million and $96.2 million.

Atlantic City casino profits gaming industry
(Picture: New Jersey Division of Gaming Enforcement)

Bills Outpacing Income

The month-to-month gross gaming income (GGR) experiences for Atlantic Metropolis learn properly final yr, because the 9 casinos continued to generate larger revenue on their gaming flooring and on-line channels.

2022 GGR from brick-and-mortar casinos, iGaming, and retail and cell sports activities betting totaled greater than $5.2 billion, an all-time document excessive that simply eclipsed the state gaming trade’s earlier better of $4.8 billion set in 2007.

The 9 casinos have been stressing that the gross income experiences are deceptive as they relate to the general well being of the brick-and-mortar resorts. The trade argues that a lot of the gross income generated on-line by means of iGaming platforms and on-line sportsbooks is retained by the casinos’ third-party companions like DraftKings and FanDuel.

Greater overhead, a results of the US experiencing document inflation final yr, additionally vastly impacted income as bills outpaced the stronger web income.

You might have income that’s not rising quick sufficient, and couple that with bills in some classes which are up 25% or extra, and you’ll see how rapidly

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