Ocean Casino Resort Fire Costs Property an Estimated $1.4 Million in Lost Gaming Revenue

Gaming at Ocean Casino Resort remains suspended hours after a fire triggered the property’s fire suppression system.

The Atlantic City Boardwalk casino closed early Monday (July 27) morning after a small fire in the linen room caused water sprinklers to turn on to extinguish the blaze. The fire produced heavy smoke, according to eyewitness reports, as it was doused.

The fire suppression response caused a pipe to burst, leading to a partial ceiling collapse in the casino’s main lobby. Ocean Casino Resort subsequently closed its gaming floor temporarily while crews assessed the damage.

“Due to unforeseen circumstances regarding a water pipe bursting resulting in damage, gaming at Ocean Casino Resort will not be available at this time,” the casino posted to its website and social media channels.

The gaming disruption applies to slots, table games, and sports betting. The incident canceled a planned $30,000 slot tournament that was scheduled to run today from 1 pm until 8 pm.

The resort is operating in a limited capacity, with hotel rooms, most restaurants, and pools remaining available to guests.

Costly Casino Closure

Ocean is among the most profitable casinos of the nine in Atlantic City. In the first quarter, the resort posted a gross operating profit of $18.8 million, which ranked third behind only Borgata ($39.8 million) and Hard Rock ($19.8 million).

Ocean is considered a luxury resort in the Atlantic City market, and as such, demands the highest room rates.

For the first quarter, which is the slow season in Atlantic City, Ocean managed to charge an average nightly rate of $234 for its 1,860 guestrooms. Ocean reported an occupancy rate of 74.6% for the three months. Only Hard Rock had a higher occupancy rate at 78.2%, though its 1,973 guestrooms went for an average of $143.

Ocean is also a gaming leader, as its high-end clientele have healthy casino budgets. Ocean’s slots won $164.1 million from January through June, while its table games kept $69.1 million of players’ bets. Ocean’s retail sportsbook powered by Fanatics generated gross sports betting revenue of $504,000.

Last July, Ocean reported gross casino revenue of $43.1 million. That equates to about $1.39 million per day, highlighting the steep losses that Ocean is incurring by today’s pipe burst.

New Ownership

Ilitch Gaming, the newly formed gaming unit of Ilitch Holdings, fully acquired Ocean Casino Resort in June.

The organization of the billionaire Ilitch family, who made their fortune by founding Little Caesars, bought a 50% stake in the Atlantic City casino in 2021 for $175 million. Ilitch Gaming bought out private equity firm Luxor Capital for an undisclosed sum.