The loss of four casinos in Atlantic City in 2014 continues to look like a boon for the remaining eight casinos.
According to figures released by state regulators, the eight casinos saw their gross operating profits rise by 26 percent in the first quarter of this year. The casinos posted a collective operating profit of $81.3 million, up from $64.5 million in the same period last year.
“Gaming revenue is up, total revenue is up, net revenue is up, gross operating profits are up, hotel occupancy rate is up and the average room rate is up,” said Matt Levinson, chairman of the new Jersey Casino Control Commission in a press release. “In a quarter when it is not uncommon for casinos to lose money, six properties generated gross operating profits and a seventh cut its loss by almost 40 percent. I am optimistic that we will see continued improvements through the rest of the year as casino hotels continue to expand their non-gaming attractions.”
The first quarter of the year—which includes the winter months—is usually the most difficult for Atlantic City casinos.
The Golden Nugget had the largest profit increase reversing an operating loss of nearly $1.8 million in the first quarter of 2014 to a profit of more than $4 million in the same period this year.
Caesars Atlantic City—which is in bankruptcy—posted a 143 percent increase in operating profit for the quarter, to nearly $15 million. Bally’s Atlantic City—also a Caesars property—went from a first-quarter operating loss of $1.5 million last year to a profit of $4.5 million this year. Harrah’s Atlantic City saw its profit increase more than 30 percent, to $27.6 million.
The Borgata Hotel Casino & Spa saw operating profit rise by more than 82 percent, to $38.4 million, and remains the city’s market leader.
Meanwhile, there were some losers. The Tropicana casino resort saw its operating profit fall from $32 million in the first quarter of 2014 to about $2.4 million this year.
Resorts posted an operating loss of $1.4 million, but that was a 40 percent improvement over a $2.3 million first-quarter loss last year.
The Trump Taj Mahal—which is also in the middle of a difficult bankruptcy—saw its operating loss rise from $3.2 million in the first quarter of 2014 to more than $8.7 million this year.
Gross operating profit reflects earnings before interest, taxes, depreciation, and other charges and is a widely accepted measure of profitability in the Atlantic City casino industry.
The casinos’ collective occupancy rate for the first three months of the year was more than 72 percent, with the average hotel room price being just under $99.
