Atlantic City casinos appear to have righted their sinking ships after the market reported profits rising nearly two-thirds in the third quarter of 2015.
According to figures released Monday by the New Jersey Division of Gaming Enforcement (DGE), AC’s eight surviving casinos posted a total Q3 profit of $237.4m, up 61% from the same quarter last year. For the year-to-date, profits are up 67.5% to $450.9m.
The profit surge reflects the casinos’ increased focus on cost-control, as their collective net revenue improved a mere 5% to $783m in Q3. In fact, two casinos – Caesars and the Trump Taj Mahal – posted year-on-year net revenue declines in Q3 while still managing to turn a profit.
Also turning things around was Caesars Interactive Entertainment New Jersey, whose online gambling operations reported Q3 revenue of $5.5m, which was up a mere $100k year-on-year but resulted in an operating profit of $1.5m compared to a $2.2m loss in Q3 2014. Resorts Digital, the other online-only operator tracked separately by the DGE, reported revenue of just over $2.2m and a net loss of $2m. (Resorts’ online division launched this spring so there are no year-on-year comparisons.)