Atlantic City’s downsized casino market reported a 30.4 percent increase in gross operating profit for the first quarter of 2017 over 2016.
The figures represent profits for the city’s seven operating casinos.
“If there were any doubt about the health of Atlantic City’s casino industry, these results should lay them to rest,” said Matt Levinson, chairman of the state Casino Control Commission. “It’s clear to me that the industry has stabilized and operators are showing healthier bottom lines. With the summer upon us, there are a host of concerts, festivals and other events over the next several months that should help casinos continue to grow.”
According to an analysis by the Associated Press, the Borgata had the highest operating profit at $61.4 million, an increase of about 29 percent from the first quarter last year. Harrah’s had an operating profit of $23.7 million, down 11.3 percent from last year. Caesars had an operating profit of $20.1 million, up 31.6 percent from the first quarter of last year.
The Tropicana had an operating profit of $16.2 million, compared to a $7.3 million profit In the first quarter of 2016. The Golden Nugget’s profit was about $6.2 million, a decrease of 7.7 percent from last year; Bally’s had a $4.5 million profit, down 19.9 percent from last year, and Resorts had a $4 million profit, nearly 10 times its profit from the first quarter of last year.
For online gaming, Caesars Interactive-NJ had an operating profit of $2.3 million, down 6.6 percent from last year, and Resorts Digital saw a $570,000 profit, compared with a $1.1 million loss in the first quarter of last year, according to the AP.
In another Atlantic City matter, a judge has ruled that the city government can cut police department salaries, but stopped short of allowing layoffs.
The proposed moves are part of the New Jersey’s takeover of the city’s municipal finances in an effort to bring the resort back to financial solvency.
The state wants to break union contracts and cut pay and institute layoffs. The city’s public safety unions are challenging the moves in a lawsuit.
The Press of Atlantic City reported that Atlantic County Superior Court Judge Julio Mendez said the state can go forward with altering union contracts to cut pay for police officers. Mendez said the pay cuts do not amount to “irreparable harm” as officers could be paid back for damages if the city’s police unions win their case.
Mendez, however, temporarily blocked the state from laying off 19 police officers to reduce the department’s staff to 250. He said the unions could likely prove the staff reductions would harm public safety.
