Atlantic City’s 11 casinos saw a 35 percent increase in gross operating profit for the second quarter of 2014.
The increase can be largely traced to the Borgata Hotel Casino & Spa, which reached an $88 million tax settlement with Atlantic City in June. Most of the city’s casinos saw a decline in profits.
Figures released by the state show the casinos posted a collective gross operating profit of more than $83 million in April, May and June of this year—an increase of 34.9 percent over 2013.
Net revenue from January through June, however, was 4.9 percent less than in 2013.
Gross operating profit reflects earnings before interest, taxes, depreciation and other charges, and is a widely accepted indicator of profitability in the casino industry.
The Borgata posted an operating profit at $43.2 million, compared with $28.1 million in 2013. Casino officials said $11.8 million of the tax settlement was applied to second quarter earnings.
Two casinos that are closing their doors saw losses. Revel, which closed Labor Day weekend, had the biggest loss at $24.3 million but still saw a 44 percent increase over 2013. Trump Plaza, which is shutting down Sept. 16, showed a $3.3 million operating loss for the quarter, compared to a $143,000 profit last year.
The Showboat, which has also closed, showed an operating profit of $7.6 million for the quarter, down from $9.5 million in 2013. The fact that Caesars Entertainment has closed a profitable casino in the resort has caused backlash against the company, but Caesars officials say they are trying to protect their other three city casinos.
Resorts casino posted a nearly $2 million profit compared to a $1.3 million loss in the second quarter of last year.
Caesars Interactive posted a $2.7 million quarterly loss associated with continuing expenses of ramping up Internet gambling operations.
Hotel occupancy in the city was more than 83 percent for the quarter, up nearly 5 percent from the same period last year.
