Atlantic City Casino Q1 Profits Disappoint, Consumer Complaints Continue
Posted on: May 22, 2025, 04:10h.
Last updated on: May 22, 2025, 04:10h.
- Atlantic City operating profits were down in the first quarter of 2025
- However, eight of the nine casino resorts remained profitable
- Bally’s was the only casino to post an operating loss
Atlantic City casinos generated less revenue from guests and therefore saw their operating margins narrow in the first quarter of 2025.
On Thursday, the New Jersey Division of Gaming Enforcement (DGE) revealed that net revenue for the nine casinos amounted to $730.3 million, a 5.1% year-over-year decline. Net revenue includes money from the casino floors, hotel rooms, food and beverage, and most iGaming and sports betting win.
The revenue loss led to reduced profits. The nine properties, along with Caesars Entertainment’s interactive gaming unit, reported a gross operating profit of nearly $132 million. That represented a 15% slide from the first quarter of 2024.
Only two casinos reported higher profits — Hard Rock and Tropicana — but eight of the nine were in the black, with Bally’s the exception with an operating loss of $6.6 million.
Economic Pressures
Gross profits, the DGE explained, reflect earnings before interest, taxes, depreciation, amortization, affiliate charges, and other miscellaneous items. It is a widely accepted measure of profitability in the Atlantic City gaming industry.
New Jersey Casino Control Commission Chair James Plousis said in prepared remarks to Casino.org that the casino beach town suffered from higher costs of goods and services.
Atlantic City’s first quarter net revenue declined in comparison to the same periods of the past two years, reflecting economic pressure that affects regional gaming and leisure tourism. Lower gross operating profit due to the elevated cost of goods and services purchased by the operators continued to be seen in the first quarter,” Plousis said.
Atlantic City’s disappointing Q1 in 2025 followed Q1 2024 where profits dropped almost 9%. The gaming resorts haven’t posted a year-over-year profit gain in Q1 since 2022.
The start to the second quarter of 2025 didn’t fare well, either. In-person casino play in April was down almost 3%, and oddsmakers, which are taking considerably fewer bets this year than they did in 2024, saw revenue tumble 15%.
The Q1 report on the health of the Atlantic City casino industry also exposed that the nine properties are accommodating fewer overnight guests. The casinos’ 15,424 guestrooms were occupied less than 63% of the time on an average nightly rate of $159.
The 62.9% casino hotel occupancy rate is the lowest for Atlantic City since 2014 aside from Q1 2021 when COVID-19 continued to interrupt travel. The $159 going rate represented a 3% decline from Q1 2024.
Consumer Complaints
Casino.org continues to field many critical comments about Atlantic City. Our readers continue to push back against our recent conversation with Mark Giannantonio, the president of Resorts and the Casino Association of New Jersey, that the town is embarking on a “renaissance” and its best days are still ahead.
Plousis shares Giannantonio’s stance, writing today that the Atlantic City resorts used the winter slow season “to improve and freshen their offerings” and that the town is “ready to welcome guests and open an exciting summer season this Memorial Day weekend.”
Recent guests dispute such claims.
“Went to Atlantic City last week — pitiful. No payouts on slots. Just keeps taking money. No bonus, can’t get a bottle of water. Tropicana room was so-so. It’s a shadow of what it used to be. I won’t be returning,” said Casino.org commenter Joslyn Johnson.
Why should people drive to AC and waste money on high tolls, gas, and parking fees? In Philly, there are six casinos with free parking. The AC government is highly corrupt. Atlantic Avenue has needed paving for years,” opined Steve Winnings.
“The biggest problem in Atlantic City is that there is no fun. I haven’t had a winning trip in three years. I go four times a year. Resort fee keeps going up and fewer room and food vouchers,” added Mary.
All three comments came over the last week. They are three of many.
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