The third quarter of the nine Atlantic City casinos was nothing short of amazing, as state figures, released on Monday, showed their gross operating profit to be more than double compared to the same period in 2020. Like The New Jersey division of Gaming Enforcement reported, total profit for July, August and September was over $ 310 million.
Third quarter 2020 profit was $ 151 million
With the new figures, it is clear that profit is more than twice that of the third quarter of 2020 when it reached $ 151 million. During this period, Atlantic City casinos were still operating under massive state-imposed restrictions due to COVID-19.
This is why the president of the New Jersey division of games enforcement, James Plousis, said the results are not “directly comparable.”
Therefore, he compared to the third quarter of 2019, when the pandemic was not even on the radar, and the results show that casinos this year have 30% less revenue. In a statement, Plousis noted that operators were able to make a decent profit in the third quarter of 2021 thanks to the efficiency.
He added that while the times are tough, Atlantic City is gaining momentum with its recovery and is expected to end 2021 on a high. Operators are now open to offering customers new experiences, including the high limit slot experience at Ocean Casino.
Gross operating profit presents the numbers before the calculation of expenses such as taxes, depreciation and interest and is an accepted measure of the profitability of the casino industry in the city.
Atlantic City Casinos “Run Lean”
According to the director of the Lloyd Levenson Institute at the University of Stockton, Jane Bokunewicz, the casinos have managed to reach this milestone with few workers by “running lean”. The Lloyd Levenson Institute at Stockton University studies the gaming industry in Atlantic City, and as Bokunewicz has pointed out, casinos have been successful in balancing growing consumer demand for amenities such as accommodation with reduced supply. labor.
He went on to say that this case raises the question of whether some unfilled jobs at these facilities could be cut in the future.
The highest operating profit was recorded by The Borgata at $ 57.2 million, an increase of $ 2.3 million from the same period in 2020. Tropicana took second place with 48 million, while profit at the site in 2020 was $ 18.2 million.
Hard Rock’s profit was $ 46 million, which is also an increase from $ 21 million last year. Harrah’s profit in 2020 was $ 19.3 million and in 2021 it reached $ 44 million. Ocean Casino’s profit was $ 37 million, which is an increase from $ 24 million last year.
Caesars profit reached $ 27.6 million, an increase from $ 17.5 million, Resorts profit was $ 16.1 million, an increase from $ 7.7 million , while Golden Nugget’s profit was $ 14.3 million, an increase from $ 7 million.
Bally’s, which was owned by Caesars Entertainment in 2020 and made a profit of $ 13 million at the time, posted an operating profit of $ 2 million in 2021. Long Island-based Bally’s Corp. now owns the casino.
Hard Rock President Joe Lupo said North Beach, which is the northern end of the Atlantic City Boardwalk, leads the market and Ocean Casino Resort, Resorts and Hard Rock Atlantic City have the majority of the market. increase compared to 2019.
Golden Nugget Online Game Is The Best Internet-Only Feature
Golden Nugget Online Gaming’s revenue for the third quarter of 2021 was over $ 9 million, making it the top revenue for internet-only entities, even though it is a down from $ 9.4 million reported in the same period of 2020.
Caesars Interactive Entertainment New Jersey’s revenue was $ 5 million, an increase from $ 4.8 million. Resorts Digital’s profit was $ 3.8 million, which is a massive drop from the $ 6 million profit recorded in the third quarter of 2020.
For hotel occupancy, the highest average room cost belonged to Ocean at $ 331 and Resorts had the lowest at $ 148. The total occupancy rate of the nine casinos was over 81%, with Hard Rock and Ocean having the highest occupancy rate at over 96%. Caesars occupancy rate was 93%, while Golden Nugget was at the bottom with 64%.