Atlantic City casinos are struggling to exceed their pre-pandemic revenues as is seen from the results on overall gaming revenue coming from gambling activities in the state of New Jersey in the second quarter of 2022 ending on June 30 as reported by the New Jersey Division of Gaming Enforcement.
The New Jersey Gambling Sector is Doing Great as a Whole
On August 22, the New Jersey Division of Gaming Enforcement reported on the total revenues coming from gambling activities in the state of New Jersey in Q2, 2022. The gambling industry in the state is actually recovering pretty well from the effects of COVID-19 when the results are compared to the same period in 2021.
Net revenue for the three months of April, May, and June totaled $828.8 million, which marks a 14.1% boost when comparing the results with the same period last year. The sector also reported gross operating profit amounting to $183.6 million.
Looking at the first six months of 2022, there was an increase of 19.9% in net revenue to $1.5 billion in comparison to the first six months of 2021. H12022’s gross operating profit also saw a 20.9% rise to $339.3 million year-on-year.
The New Jersey Division of Gaming Enforcement also reported on hotel occupancy for the casino hotels in the state, which was 77.4% during the second quarter of 2022. This also marked an increase of 7.4% in Q22022 compared to the same period last year.
Looking at the individual casinos, Hard Rock ranked highest in terms of hotel occupancy with over 95%, while the lowest performer was Golden Nugget with occupancy lower than 58%.
Five Casinos Failed to Exceed Their Pre-Pandemic Profit Levels
However, if we look at how casinos were doing before the pandemic, things are not looking just as good. According to the figures released by the New Jersey Division of Gaming Enforcement, the nine casinos that operate in New Jersey have posted collective profits surpassing the $159.3 million that they reported for the same quarter in 2019, but four of the casinos reported a decline in profits in Q22022 compared to Q22019 and one reported a net loss when comparing the same two periods.
When comparing the results for July 2022 and July 2019, we can also notice the same pattern. The nine casinos posted $299 million in profits from in-person gambling in July 2022 while they collected just $277 million in July 2019. Yet looking at the individual casino results for Bally’s, Borgata, Golden Nugget, Harrah’s, and the Tropicana, profits for July 2022 were lower than the revenues in July 2019.