2024 was a particularly eventful year for Atlantic City’s casino industry. With a collective gross operating profit of $675.1 million in 2024—for a 9.3% drop from 2023’s record of $744.7 million—Atlantic city revenue numbers are quite interesting.
While Atlantic City’s 2024 numbers dropped from previous years, some of its casinos managed to buck the downward trend. Caesars and Hard Rock were two such casinos, thriving in a space that was hard hit by rising labor, utility, and marketing costs. It remains to be seen if the coming months will see a change in overall trends.
In the latest legal betting news from New Jersey, the New Jersey Division of Gaming Enforcement reported a year-over-year decline in gross operating profit for 2024. In his reaction to the report, Mark Giannantonio, president of the Casino Association of New Jersey, acknowledged that these were trying times.
It also marked the third consecutive year that the state experienced a drop in profits. Industry sources have attributed this to the slow post-pandemic recovery and the expansion of offerings provided by neighboring states.
While revenue generated by the state’s operators has dwindled, it is quite uncanny that visitor traffic to these casinos did not drop. The 72% average occupancy recorded for Casinos in previous years remained valid for 2024. Among these casinos, Ocean pulled in the highest average nightly room rate (at $270.42), while Golden Nugget came in last place with a $195.80 average nightly room rate.
Jane Bokunewicz of Stockton University has cited rising operating expenses and elevated promotional allowances as the major driving factor behind the 9.2% drop in profit. She went further to say that casinos must roll out even more promotions to retain loyalty, in the face of brick-and-mortar casinos experiencing flattening growth.
The sports betting and internet gambling segments fared considerably better, with revenues growing by an estimated 8% and 12%, respectively. While this wasn’t enough to offset the higher costs elsewhere, it gave some hope of a full recovery in the not-too-distant future. The challenge before the state’s operators is how to maintain healthy margins as they optimize digital channels and streamline land-based operations.
While the larger gambling industry experienced a slump in profits, there was a lot of variation in the degree to which different operators were affected. Bally’s saw the biggest profit reduction, with its operating profit spiraling downwards by almost 77%—from $11.1 million in 2023 to just $2.5 million in 2024. Resorts Casino Hotel struggled as well, with its profits plummeting by 43.8% to $5.3 million, due in part to promotional costs cutting deep into its margins.
While Golden Nugget’s profit fell 39.5%, down to just over $18 million, Harrah’s profitability declined 20.4% to $64.1 million. Ocean Casino Resort fared slightly better, with profits down 13.6% to $101.3 million, and Tropicana posted an 11.5% profit drop to $82.4 million. Borgata, Atlantic City’s largest property, managed a smaller decrease of 7.7%, finishing the year with $208.5 million in profit.
In more promising news, Caesars saw a 10.7% increase in operating profit, reaching $57.2 million. This was helped in no small part by successful cost controls and strong premium‑player business. Hard Rock’s profit was also up 7.9%, reaching $135.4 million and proving its new dining and entertainment offerings to be a big draw.
Caesars Interactive Entertainment NJ’s profit makes the front row for internet-only operators, dipping 3.5% to $22.8 million. Just before giving up its license in a move that saw it shift its online revenue efforts under the Resorts Casino umbrella, Resorts Digital reported $11.1 million in profit. Atlantic City’s gross operating profit was $709.1 million, down 9.2% year‑over‑year.
With Atlantic City’s 2024 profit reported to have taken a significant hit, it’s not exactly difficult to imagine what the conversations are focused on. While effort will undoubtedly be made to address the cause of the slump, the various players will be looking to chart a more favorable course going forward.
The general feeling is that there’s a path to recovery well ahead, and it’ll take concerted effort by the industry’s stakeholders to put it back on track. By balancing cost control with digital expansion in iGaming and sports betting, all while enhancing the land‑based guest experience, there’s hope that better days are ahead.
