How bad are the second quarter revenue figures for the Atlantic City casinos?

Heneghan covered the casino beat for the Press of Atlantic City for 20 years before moving to the Casino Control Commission in 1996. He retired this past May. He retired this past May. He’s a big, friendly guy with a mustache like a push broom and a habit of lowering his voice and pausing near the end of his sentences, as if he’s telling. This June 6, 2019 photo shows the Resorts, Hard Rock and Ocean casinos, along with the non-gambling Showboat Hotel on the Boardwalk in Atlantic City, N.J. AP By The Associated Press Atlantic City’s. Now that the data for December 2019 have been added, the Division of Gaming Enforcement (DGE) reports a total of $3.29 billion in revenue for 2019 for the nine Atlantic City casinos combined. This represents an increase of more than 15% compared to 2018.

The state Division of Gaming Enforcement, in its press release filed on Monday afternoon, declared, “In light of the casino closures, the Net Revenue and Gross Operating Profit (Loss) for the 2nd quarter and year-to-date are not comparable to the 2019 period.”

So, that bad.

Instead of its quarterly listing of gross operating profits, the period of April, May, and June — when all of the casinos were shuttered the entire time due to the COVID-19 crisis — the DGE had to report a gross operating loss for once, of $112 million.

DGE won’t compare that figure to Q2 2019, but we will: In that period, the casinos had gross operating profits of $159.3 million. (The latter figure was down slightly compared to Q2 2018, by the way.)

For the year, the casinos have lost $82.4 million, while in 2019 the first six months generated $245.1 million in profit to those casinos.

DGE Announces 1st Quarter 2019 Results For Immediate Release: May 22, 2019 Contact: Kerry Langan (609) 317-6201 info@njdge.org ATLANTIC CITY — Casino Licensees Financial Results: According to financial reports filed with the Division of Gaming Enforcement (DGE), the casino licensees’ Net Revenue increased 17.6% to $704.6 million. This May 15, 2019 photo, shows the exterior of the Ocean Casino Resort in Atlantic City, N.J. On Wednesday, May 6, 2020, New Jersey gambling regulators gave New York hedge fund Luxor Capital Group.

Hotel occupancy rates for the period were zero, of course, compared to 81.5% in Q2 2019.

Market leader Borgata, which at $55.4 million had just over one-third of the industry’s profits in Q2 2019, this time had the same proportion of the industry’s losses — $40.2 million.

Every casino lost money except Golden Nugget, whose remarkably strong online casino product enabled it to eke out a $3.1 million profit for the quarter. Still, that was down two-thirds from Q2 2019’s $10 million in Golden Nugget profits.

Tropicana’s “variance” of the two second-quarter numbers of minus 152% qualified as the second-least worst of the casinos. Ocean Casino’s industry-worst figure of 885% reflects a loss of $1.2 million in 2Q 2019 — the only AC casino to show a loss in that span — and then $11.8 million in this year’s second quarter.

All of 2020 is a bust for AC casinos

The first quarter 2020 numbers only included two weeks of March when the casinos were closed due to the pandemic.

But that period normally would have included the NCAA men’s basketball March Madness tournament, which is a large driver of both gambling on the games and also hotel stays by groups of fans who annually also spend plenty of additional money on casino game play, food and beverage, and shopping.

So in that first quarter, the casinos’ net revenues decreased 14.5% to $595.7 million compared to Q1 2019, while the gross operating profit of $29.6 million was a drop of 65.4% compared to the same period in 2019.

The hotel occupancy rate in first quarter 2020 also slipped by 4.5 percentage points to 68.1% occupancy.

What’s next?

Eight of the nine casinos reopened on July 4 weekend, with Borgata following three weeks later. So all of the casinos will have two months of operation and most will have nearly the entire third quarter with hotel guests.

But casino capacity is limited to 25%, and neither alcohol nor substantial food offerings are allowed inside the casino walls.

Still, industry observers have estimated that the casinos will recoup more than 25% of Q3 2019 figures, because the “high rollers” who stay in luxury suites can have high-end food and drink brought to the room. Those same players have plenty of disposable income, and a pent-up demand to play after 3 1/2 months away from their familiar haunts.

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Over the past year, Atlantic City has grown to become one of the most profitable gambling hubs in the country. New reports show that Atlantic City casino revenue increased massively in 2019’s third quarter. It’s fantastic news for the state and casino companies operating here.

Both sports betting and casino gambling continues to generate revenue here. Let’s take a look at exactly how much money the city’s gambling industry managed to generate over the past several months.

New Reports Show Atlantic City Casino Revenue is Increasing

You can’t cover the US casino industry without talking about Atlantic City. Decades ago, this was one of the most profitable gambling markets in the world. Unfortunately, the recession took a major toll on this city and it seemed on the brink of collapse.

Atlantic city casino revenue may 2019 solicitations

Recently, however, things have improved dramatically. Revenue in this city has continued to increase for almost all of 2019. There are a few major reasons why this is.

The legalization of sports betting is certainly helping. New Jersey made sports gambling legal in May of 2018. Every casino in the state now operates a sportsbook. It’s helped to generate millions of dollars for the state government via taxes. New Jersey now has the most profitable sports betting market in the world.

New reports show that Atlantic City casino revenue increased massively during this year’s third quarter. Gross profit for the three months increased to $26.5 million, representing a 12.5% increase from the same time period in 2018. Atlantic City’s nine casinos generated $928.9 million in net revenue.

Things are looking very good here. Based on the way things are going, this will be the best year in the city’s history.

Which Casinos Generated the Most Money in Q3?

July, August, and September are all popular gambling months. It’s not a huge surprise to see so much money flowing into the casinos during this quarter. Some casinos managed to earn considerably more than others, though.

Borgata Casino generated the most money. It’s the most popular casino in the city and blew all of its competitors out of the water. In total, this gambling venue brought in $210,141,863. Hard Rock Atlantic City brought in the second-most money at $106,663,788.

These properties have reason to celebrate. James T. Plousis, Casino Control Commission Chairman in NJ, states that non-gambling amenities in the city proved successful last quarter, too.

“Positive trends also continued with important tourism indicators,” he said. “Non-gaming amenities continue to create a competitive advantage, and visitors like the diverse dining, entertainment and leisure activities that Atlantic City has to offer.”

Just about every casino had a solid few months. Things are obviously slowing down as winter approaches yet many are still generating more money than they did last year.

Sports Betting Revenue Surges in AC, As Well

There’s never been a better time to be a sports fan in Atlantic City. Sportsbooks in this city are continuing to improve. Both online and land-based sports gambling is legal here. For almost all of 2019, revenue from this industry has increased.

In October, sports betting helped to increase gambling revenue in this city to $266.23 million. Statewide, sports bettors here placed $487.9 million in legal sports wagers last month. 85% of these bets were placed online.

Altogether, more than $3.5 billion has been spent on sports bets in this state.

“New Jersey sportsbooks have surpassed Nevada’s in recent months, and it continues to show significant promise for the gaming industry,” said Steve Callender, president of the Casino Association of New Jersey and senior vice president of operations for the East Region of Tropicana

Atlantic City Casino Revenue May 2019