AC Casino Operators Report Dip In Revenue but Post Profits

The New Jersey Division of Gambling Enforcement (DGE), the state’s gambling regulator, released its latest financial data, highlighting the performance of casino operators for the fourth quarter and full year 2024. While licensees reported a dip in their net revenue for the year and a decrease in hotel occupancy, all operators were profitable.

Net Revenue and Hotel Room Occupancy Decrease Slightly In 2024

In total, the net revenue reported by licensed hotel and casino operators in Atlantic City for 2024 halted at $3.31 billion. The figure, compared to the result for 2023, shows a slight decrease of 0.5% in net revenue. While most licensees reported dips in net revenue, Caesars’ result in 2024 marked a slight increase of 1.3%, with a similar result of 1.8% recorded by Ocean Resort.

Per the DGE’s latest report, the total hotel occupancy rate for the twelve months ended December 31, 2024, was 72%, with the average rate per occupied room at $177.79. A year-over-year comparison in the total industry occupancy rate pointed to a decrease of 1%.

On the bright side, while the overall gross operating profit for the twelve months ended December 31, 2024, marked a year-over-year decrease, all licensees reported profits. In 2023, the gross operating profit hit $780.7 million, while in 2024, the figure was $709.1 million, signaling a 9.2% year-over-year decrease.

Out of nearly a dozen licensees, only two reported an increase in their gross operating profit year-over-year. That’s the case with Caesars and Hard Rock, which reported a year-over-year increase of gross operating profit of 10.7% and 7.9% respectively.

Decreases in Profits and Net Revenue Recorded During Q4

When it comes to the fourth quarter, Atlantic City’s hotel and casino resorts recorded a notable decrease in gross operating profit and a slight dip in net revenue. In total, the net revenue reported by licensees in Q4 2024 halted to $768.9 million, a result that pointed to a 1.7% decrease when compared to the same period in 2023.

On the other hand, gross operating profit in Q4 2024 took a significant hit. In total, the licensees reported $132.5 million in gross operating profit for the fourth quarter of last year, pointing to a notable 10.8% decrease year-over-year.

While the hotel room occupancy rate for 2024 was at 72%, in Q4, the average occupancy was far below that figure at 65.6%. The average rate per room occupied in Q4 2024 was $160.27, based on DGE’s recent report.

While the fourth quarter was a challenging period for Atlantic City’s casinos, one expert recently predicted a bright future for the seaside resort town. That prediction comes amid rising fears about the impact of President Donald Trump’s sweeping tariffs that affected global trading and wiped off trillions in wealth for US-facing markets.