The New Jersey Division of Gaming Enforcement has recently unveiled key figures from the second quarter of 2023, shedding light on the financial performance of casino licensees in the state. Despite the challenges, the data provides a comprehensive overview of net revenue, operating profits, and occupancy rates, offering valuable insights into the evolving dynamics of the gaming industry in New Jersey.
Net Revenue and Operating Profits Overview
In the second quarter of 2023, casino licensees in New Jersey generated a net revenue of $819 million, reflecting a marginal 1.2% decrease compared to the same quarter in the previous year. Atlantic City casinos, the focal point of the state’s gaming sector, reported a gross operating profit of nearly $146 million. However, this figure represents a notable 20.5% decline from the corresponding period a year ago and falls short of the $159 million recorded in the second quarter of 2019.
Individual Casino Performance
Diving into individual casino performance, a mixed picture emerges:
Hard Rock: The casino posted the largest operating profit at $30.4 million, indicating a 20% decrease.
Tropicana: Recorded a $25 million operating profit, down by 18%.
Ocean Casino: Demonstrated substantial growth with a $24 million operating profit, representing a remarkable 54% increase.
Harrah’s: Posted an $18 million operating profit, showing a decline of 15.5%.
Caesars: Showed resilience with a $15.3 million operating profit, marking an 8.3% increase.
Borgata: Experienced a significant downturn with a $12.3 million operating profit, down nearly 71%.
Golden Nugget: Achieved a $7.6 million profit, down nearly 16%.
Resorts: Reported a $3.4 million profit, down over 44%.
Online Gambling and Interactive Entertainment
In the digital realm, online arms of traditional casinos displayed varying performances:
Resorts Digital: The online arm of Resorts reported a $1.1 million profit, down 35%.
Caesars Interactive Entertainment NJ: Posted a $6.7 million profit, up 14%.
Hotel Occupancy Rates
The hotel occupancy rate for the second quarter ended June 30 stood at 74.4%, reflecting a 3-percentage point decrease compared to Q2 2022. The overall occupancy rate for the first six months of 2023 reached 69.8%, showing a marginal decrease of 0.6 percentage points.
Year-to-Date Performance
For the first six months of 2023, net revenue reached $1.6 billion, marking a positive increase of 1.5% from the corresponding period last year. However, the gross operating profit for the same period recorded a decrease of 17.9%, totaling $281.4 million.
The data from the second quarter of 2023 provides a nuanced perspective on the challenges and opportunities facing the gaming industry in New Jersey. While certain casinos demonstrated resilience and growth, others faced significant declines. The digital landscape, marked by the performance of online arms, further highlights the dynamic nature of the sector. As the industry continues to evolve, these insights serve as valuable markers for stakeholders navigating the complex terrain of New Jersey’s gaming landscape.