Atlantic City casino profits plunge 30% with two more mouths to feed

Atlantic City casino profits continued to shrink in the first quarter of 2019 as the combination of new casino competition and sports betting expansion costs dragged down the numbers.

Figures released Wednesday by the New Jersey Division of Gaming Enforcement (DGE) show that AC’s nine brick-and-mortar casinos – plus two purely online gambling operations – generated revenue of $704.6m in the three months ending March 31, a 17.6% improvement over the same period last year.

However, of the seven casinos that were operating in Q1 2018, only one – Resorts Casino Hotel – posted a year-on-year revenue gain, and Resorts was coming off an unusually low result last year. The other six casinos suffered declines ranging from the Golden Nugget’s 2.6% slip to Harrah’s 15.7% tumble.

The revenue gains were only possible due to the two casinos that opened last June – Hard Rock Atlantic City and Ocean Casino Resort – which combined for an extra $135m added to Q1 2019’s total, as well as rising online gambling contributions and new revenue from sports betting.