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

Only Hard Rock and Caesars saw profit increases, with gains of 2.4% and 11.2% respectively. The remaining casinos experienced profit declines ranging from 10.9% at Bally's to 43.8% at Golden Nugget.

Hotel occupancy dropped to 84.1%, with average nightly rates falling 8% to $201 compared to $218 in 2023. Ocean Casino maintained the highest rates at $336, while Golden Nugget offered rooms at $125.

Through the first three quarters of 2024:

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

Key challenges facing Atlantic City casinos include:

• Increased regional competition
• Rising inflation and labor costs
• Higher operational expenses
• Shifting consumer preferences post-COVID
• Revenue sharing with third-party online gaming partners

The industry maintains profitability despite these headwinds, marking the third consecutive year with net revenue exceeding $2.5 billion in the first nine months.

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