Atlantic City's nine casinos experienced declining profits in Q3 2024, though all properties remained profitable. The New Jersey Division of Gaming Enforcement (DGE) reported that gross operating profits fell 13.8% to $236.6 million, while net revenue decreased 2.5% to $925 million.

Key Q3 2024 Performance Metrics:

• Only Hard Rock (+2.4%) and Caesars (+11.2%) saw profit growth
• Other casinos' profits declined between 10.9% (Bally's) to 43.8% (Golden Nugget)
• Hotel occupancy dropped 1.5% to 84.1%
• Average room rates fell 8% to $201 (from $218 in 2023)

Year-to-Date Performance (January-October 2024):

• Net revenue remained flat at $2.54 billion
• Overall profits declined 9% to $576.6 million
• In-person casino revenue down 1.6% to $2.36 billion
• Online casino revenue up 24% to $1.94 billion
• Sports betting revenue increased 14% to $912.8 million

Major Challenges Facing Atlantic City Casinos:

• Increased regional gaming competition
• Persistent inflation
• Higher labor costs amid workforce shortages
• Increased operational overhead
• Shifting consumer preferences post-COVID
• Revenue sharing with third-party online gaming partners

Despite these challenges, Atlantic City's casino industry maintains profitability across all nine properties, marking the third consecutive year of net revenue exceeding $2.5 billion in the first nine months of the calendar year.

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