The third quarter for the nine casinos in Atlantic City was nothing short of amazing, as the state figures, which were released on Monday, showed that their gross operating profit was more than double than the same period in 2020. As the New Jersey Division of Gaming Enforcement posted, the total profit for July, August and September was more than $310 million.
2020 Q3 Profit was $151 Million
With the new numbers, it is clear that the profit is more than two times higher than that of Q3 in 2020 when it reached $151 million. During this period, Atlantic City casinos were still operating under massive restrictions imposed by the state due to COVID-19.
That is why the New Jersey Division of Gaming Enforcement chair, James Plousis, stated that the results aren’t “directly comparable.”
Hence, he compared to Q3 of 2019, when the pandemic wasn’t even on the radar, and the results show that casinos this year have 30% less revenue. In a statement, Plousis noted that operators were able to make a decent profit in the third quarter of 2021 through efficiency.
He added that even though the period is challenging, Atlantic City is getting momentum with its recovery and is set to end 2021 with a bang. Operators are now open to providing patrons with new experiences, one of which is the high-limit slot experience at Ocean Casino.
Gross operating profits present the numbers before expenses such as taxes, depreciation and interest are calculated and they are an accepted measure of the profitability of the casino industry in the city.
Casinos in Atlantic City Have Been “Operating Lean”
According to the Lloyd Levenson Institute at Stockton University director, Jane Bokunewicz, casinos have managed to reach this milestone with not a lot of workers by “operating lean.” The Lloyd Levenson Institute at Stockton University studies the gambling industry in Atlantic City and as Bokunewicz pointed out, casinos have successfully balanced the growing demand of consumers for amenities like lodging with the reduced supply of labor.
He went on to say that this case raises the question of whether some unfilled jobs at these facilities could be eliminated in the future.
The highest operating profit was recorded by The Borgata, at $57.2 million, which is an increase of $2.3 million compared to the same period in 2020. Tropicana grabbed the second spot with $48 million, while the profit at the venue in 2020 was $18.2 million.
Hard Rock’s profit was $46 million, which is also an increase from last year’s $21 million. The profit of Harrah’s in 2020 was $19.3 million and in 2021, it reached $44 million. Ocean Casino’s profit was $37 million, which is an increase from last year’s $24 million.
Caesars’ profit reached $27.6 million, an increase from $17.5 million, Resorts’ profit was $16.1 million, an increase from $7.7 million, while Golden Nugget’s profit was $14.3 million, an increase from $7 million.
Bally’s, which was owned by Caesars Entertainment in 2020 and had a $13 million profit then, posted an operating profit of $2 million in 2021. Bally’s Corp., based in Long Island, owns the casino now.
The president of Hard Rock, Joe Lupo, stated that North Beach, which is Atlantic City Boardwalk’s north end, is leading the market and Ocean Casino Resort, Resorts and Hard Rock Atlantic City are showing the majority of increase compared to 2019.
Golden Nugget Online Gaming Is the Top Internet-Only Entity
Golden Nugget Online Gaming’s revenue for Q3 in 2021 was upwards of $9 million, making it the top earner in entities that are only on the Internet, even though it is a decrease from the $9.4 million reported in the same period of 2020.
Caesars Interactive Entertainment New Jersey’s revenue was $5 million, which is an increase from $4.8 million. The profit of Resorts Digital was $3.8 million, which is a massive decline from the $6 million profit recorded in Q3 of 2020.
For hotel occupancy, the highest average room cost belonged to Ocean at $331 and Resorts had the cheapest at $148. The total occupancy for all nine casinos was over 81%, with Hard Rock and Ocean having the highest occupancy rate at upwards of 96%. Caesars’ occupancy rate was 93%, while Golden Nugget was at the bottom with 64%.