Atlantic City Casinos See Q1 Profits Plummet 23% Amid Higher Costs
Posted on: May 25, 2026, 10:47h.
Last updated on: May 25, 2026, 10:47h.
- Atlantic City casino profits fell 23% in the first quarter
- Higher costs were blamed against flat net revenue
- Two casinos reported operating losses
Atlantic City casino profits shrunk 4% in 2025. The first quarter of 2026 saw bottom lines further narrow.
The New Jersey Division of Gaming Enforcement (DGE) reports that the nine casinos collectively posted a gross operating profit of $104.7 million in the first three months of 2026. That represents a 22.9% decline from Q1 last year.
Gross operating profit reflects earnings before interest, taxes, depreciation, amortization, affiliate charges, and other miscellaneous items. The DGE says it is a “widely accepted measure of profitability in the Atlantic City gaming industry.”
Only Bally’s and Caesars saw their profits improve, though Bally’s remained operating in the red. Golden Nugget also reported an operating loss in the first quarter.
Seven of the nine casinos, including market leaders Borgata, Hard Rock, and Ocean, all saw their profit lines contract.
Higher Costs Blamed
Atlantic City casinos generated net revenue of $725.6 million from January through March 2026.
Net revenue includes money from casino gaming, room sales, food and beverage, and other resort facilities like entertainment and events. Net revenue was flat year-over-year, with higher costs for labor, goods, and services blamed for cutting into profits.
Atlantic City reported flat net revenue in the first quarter, a reflection of ongoing general economic pressure. The casino hotels also encountered their highest first quarter costs and expenses in nine years, significantly constraining reported gross operating profits,” said James Plousis, chair of the New Jersey Casino Control Commission.
Borgata remained the most profitable casino, though its $39.7 million yield marked an 18% slide. Hard Rock was distant second at $19.7 million, down 25%, and Ocean was third at $18.7 million, down 17%.
Plousis tried to paint Atlantic City’s future positively, despite more economic pressures poised in the coming years with three casinos opening in New York City.
“Over the past five years, casino operators have invested over $1.3 billion in their Atlantic City properties to elevate visitor experiences with first-class gaming, leisure, dining, and entertainment. During my recent off-season tours of each casino hotel, it was clear that notable improvements have continued, and a high level of commitment to the market has not wavered. Atlantic City is ready for an exciting summer season,” Plousis declared.
The nine resorts certainly need an “exciting summer season.”
Their investments have seemingly brought in some new and returning visitors to town, as casino hotel occupancy climbed from 62.9% in Q1 2025 to 64.6% in 2026. The average nightly rate also increased from $159.13 to $161.03.
The room rate occupancy and rate bumps weren’t nearly enough to offset the ongoing higher operating costs.
Q2 Started Strong
Atlantic City casinos started their second quarters strong, at least in terms of gaming.
Casino revenue from in-person play totaled $235.6 million, a 12-year April high and up 12% from April 2025. Atlantic City GGR in January was up 1.6%, down 0.3% in February, and up 2.5% in March.
May, however, could be subdued, as a rainy Memorial Day weekend and higher gas prices likely dampened some travel plans.
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