Atlantic City’s gaming scene witnessed a mixed performance in Q3 2023, with a total gross operating profit of $281.2 million, marking a modest 7.5% decrease from the same period in 2022. However, this dip in profits didn’t overshadow the overall resilience of the East Coast’s casino industry, as evidenced by the notable increase compared to Q3 2019, pre-pandemic. The emergence of new players, notably Hard Rock and Ocean Casino Resort, played a pivotal role in steering the industry towards profitability.
Q3 2023 Casino Profits:
In the third quarter of 2023, Atlantic City’s nine casinos and two online gaming operators collectively generated a gross operating profit of $281.2 million. While this figure reflects a 7.5% decline from Q3 2022, it’s important to note that the industry has rebounded significantly compared to the pre-pandemic period of Q3 2019. This nuanced perspective sheds light on the sector’s recovery and adaptation to evolving market conditions.
Individual Casino Performances:
Several key players in the Atlantic City casino landscape showcased noteworthy performances. Hard Rock recorded a gross operating profit of $44.3 million, a slight increase of less than one percent from the previous year. Ocean Casino Resort reported an impressive $43 million, marking a robust increase of over 10%. Meanwhile, established casinos such as the Borgata, Tropicana, Harrah’s, and Caesars experienced varied results, with profit fluctuations ranging from 1.7% to 18%.
Borgata: $73.5 million (down 1.7% from Q3 2022)
Tropicana: $36.7 million (down 11.5%)
Harrah’s: $30 million (down 13%)
Caesars: $21.1 million (down 18%)
The industry’s performance underscores the dynamic nature of the market, with newer entrants and established players contributing to the overall financial landscape.
October Revenue Surge:
Moving beyond Q3, October showcased a significant revenue surge in the New Jersey gaming market. The total gaming revenue, encompassing casinos, horse tracks with sports betting, and online gaming partners, reached an impressive $487.1 million. This marked a substantial 9.3% increase from October 2022 ($445.7 million).
Casino Win: $228.1 million (up 3.4% from October 2022)
Online Gaming Win: $166.8 million (up 13.3% year-on-year)
Sports Wagering Gross Revenue: $92.3 million (an 18.4% increase)
This robust October performance underscores the resilience and adaptability of the New Jersey gaming market, demonstrating sustained growth across various segments.
Atlantic City’s gaming industry navigated the complexities of Q3 2023 with a nuanced perspective, showcasing both challenges and successes. The overall gross operating profit of $281.2 million, though showing a slight decline from the previous year, reflects a resilient market that has surpassed pre-pandemic levels. The individual performances of key players, coupled with a substantial October revenue surge, paint a picture of a dynamic and evolving gaming landscape. As the industry continues to adapt to changing consumer preferences and market dynamics, these insights provide a comprehensive view of the ongoing journey of Atlantic City’s gaming sector.