Atlantic City Casino 2021 Exceeds Pre-Pandemic Levels

Atlantic City casino revenue has topped where it was before the coronavirus pandemic hit

Figures released Friday by the New Jersey Division of Gaming Enforcement show that eight of nine casinos posted gross operating profit last year.

Collectively, the nine casinos earned $766.8 million in 2021, far eclipsing the $117.5 million they earned in 2020.

But their 2021 performance also surpassed that of 2019, the year before the coronavirus outbreak, when casinos collectively earned nearly $594 million.

Gross operating profit reflects earnings before interest, taxes, depreciation, and other expenses, and is a widely accepted measure of profitability in the Atlantic City casino industry.

Jane Bokunewicz, director of the University of Stockton’s Lloyd Levenson Institute, which studies Atlantic City’s casino industry, said improved profit margins are encouraging for casinos.

“This should help operators as they seek to offset significant reductions in (gross operating profit) from 2020 and fund major capital improvement projects currently underway at City properties,” she said.

Joe Lupo, president of Hard Rock Casino, said the increase in gross operating income compared to 2019 is almost entirely due to the performance of his casino and the Ocean Casino Resort.

“You’re releasing Hard Rock and Ocean and the other seven properties have been stable since 2019,” he said. “It’s discouraging.”

Only Bally’s reported an operating loss for 2021 ($13 million), but that was half of its loss a year earlier.

The Borgata posted the biggest operating profit at $174 million, up from $650,000 a year earlier. The Tropicana earned $118.7 million, up from $18.7 million a year earlier.

Hard Rock earned nearly $107 million, up from nearly $11 million in 2020; Harrah’s earned more than $99 million, up from $8.5 million a year earlier; Ocean Casino earned more than $91 million last year, up from $21.8 million in 2020, and Caesars earned $62 million, up from $10.4 million a year earlier.

Golden Nugget earned $35.5 million, down from $7.2 million a year earlier, and Resorts earned $27.6 million, down from an operating loss of $10.5 million a year earlier. early.

COVID-19 caused Atlantic City’s casinos to close for 3.5 months in 2020. And even when they reopened, they were subject to limitations on their operations that lasted through 2021.

For internet-only entities, Golden Nugget Online Gaming earned $32.8 million in 2021, up more than 72% from the prior year. Caesars Interactive Entertainment NJ earned $16.5 million, down nearly 17% from a year earlier, and Resorts Digital earned just under $15 million, down more than 29% from a year earlier. compared to the previous year.

Net casino revenue was just over $3 billion in 2021, a statistic that includes casino revenue (minus promotional allowances such as free play) plus revenue from hotel rooms, hotel operations, and more. catering and other sources. It was up from $1.8 billion in 2020.

The Ocean Casino had the highest hotel occupancy rate in 2021 at 89%. The Borgata had the lowest at 53%.

Ocean also had the highest average rate at $239.40, while resorts had the lowest at $116.31.

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