Atlantic City casinos struggled last year, as inflation and increased costs led to a 4.5 percent decline in operating profit for 2022, compared to the previous year.
Figures released by the New Jersey Division of Gaming Enforcement show that the city’s nine casinos had a gross operating profit of $731.2 million in 2022, down from $766.8 million in 2021.
Only four casinos had an operating profit higher than they reported in 2019, the last full year before the Covid-19 pandemic.
In comments to the Associated Press, Mark Giannantonio, president of Resorts Casino and the Casino Association of New Jersey, pointed to inflation as a contributor to the flat earnings.
“You have revenue that’s not growing fast enough, and couple that with expenses in some categories that are up 20 percent to 25 percent or more, and you can see how quickly this can erode profits.” he said.
Only two of the nine casinos had higher operating profits in 2022 than in 2021: Hard Rock and Ocean.
Hard Rock earned over $128 million, up nearly 20 percent over the previous year, while Ocean earned $96.2 million, up 5.5 percent. Bally’s reduced its operating loss dramatically, losing $1.8 million compared to $13.1 million a year earlier; Borgata had an operating profit of $140.2 million, down 19.4%, and Caesars earned $60.4 million, down 2.7%.
Meanwhile, Golden Nugget was down a fraction at $30.6 million; Harrah’s earned $89.3 million, down over 10 percent; Resorts earned $21 million, down nearly 24 percent; and Tropicana earned nearly $110 million, down 7.6 percent.
