Atlantic City Casino Revenue December 2018

  • “Since Borgata arrived in the Atlantic City market more than 15 years ago, we have maintained a steadfast dedication to property growth and development, with our new concept exemplifying this objective.” Source: “DGE Announces December 2018 Total Gaming Revenue Results”, nj.gov, January 14, 2019.
  • The full report for this gaming infographic can be found at Atlantic City Gaming Revenue: ANNUAL STATISTICS FOR TOTAL,SLOT,TABLE, & INTERNETWIN,1978-2017 CENTER FOR GAMING RESEARCH,JANUARY 2018.

Atlantic City’s casinos have a ways to go reverse that 50% decline: The 2018 figure of $2.896 billion in total revenue, though up 7.5% from 2017, only gets the industry back to 2013 levels. It’s worth noting that had the city’s casino industry stuck to brick-and-mortar gambling only, 2018 would have shown the lowest total revenues in AC. Atlantic City sustained its recent positive results in 2018. Gaming revenue was over $2.8. Commission on December 26, 2017. Atlantic City High School, Cooper. Even the Borgata, Atlantic City's perennial market leader, saw its casino revenue decline in 2018. It was down 4 percent to $771.1 million. Tropicana was down 2.5 percent to nearly $381 million.

Atlantic city casino revenue december 2019

The New Jersey Division of Gambling Enforcement released the Q4 2018 report on Monday, and there is plenty of data to sift through.

Unlike the monthly reports that focus on gross gaming revenue, the quarterly reports provide a more nuanced view of the Atlantic Citycasino market.

Revenue, operating profits, hotel occupancy, and room rates are just some of the data laid bare in the reporting. And because it provides a year-end synopsis, the fourth quarter report is the most anticipated.

Here’s what the latest report tells us about the Atlantic City casino market.

Revenue and profits go in opposite directions

Atlantic City Casino Revenue December 2018

When it comes to revenue and operating profits, 2018 was a mixed bag for Atlantic City casinos.

The market saw net revenue grow from $2.7 billion in 2017 to $2.9 billion in 2018. That’s an increase of 7.5%.

At the same time, gross operating profits decreased by 15.4% in 2018. AC casinos pocketed $688.6 million in gross operating profits in 2017, but only $582.6 million in 2018.

Atlantic city casino revenue december 2019

Neither of those results is overly surprising considering the market gained two new casinos — Hard Rock and Ocean Resort (now called Ocean Casino) — in late-June.

But not every casino experienced a decline:

  • Bally’s AC: -5.7%
  • Borgata: -18.8%
  • Caesars: -15.4%
  • Golden Nugget: 12.5%
  • Hard Rock: N/A
  • Harrah’s: -6.5%
  • Ocean Resort: N/A
  • Resorts Casino: -2.7%
  • Tropicana: 1.4%

It appears Hard Rock and Ocean (larger, swankier properties) are poaching some of Borgata’s higher-end customers.

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More hotel rooms cause occupancy rate to fall

Things were just like Jekyll and Hyde on the hotel side.

Atlantic city casino revenue december 2018 calendar

With the addition of the two new casinos, room inventory increased by 25%. The 15,000 rooms were the most in the market since 2014.

A lot of those rooms went unoccupied. Occupancy rates decreased by 6.2%. But, as seen in the chart below, 2017 was a severe outlier on that front, so 2018 occupancy is in line with other years.

What might be a little surprising is the lower occupancy rate didn’t have a negative effect on room rates.

Atlantic City Casino Revenue December 2018 2019

Casinos benefit from higher room rates

The average price of a room at Atlantic City casinos ballooned from $108.35 to $137.03 year-over-year.

So what does that tell us?

Atlantic City Casino Revenue December 2018 Calendar Printable

On average, the number of occupied rooms in Atlantic City was at its highest level since 2014:

Atlantic City Casino Revenue December 2018
  • 2014: 14,303
  • 2015: 10,873
  • 2016: 11,038
  • 2017: 9,819
  • 2018: 12,234

And since the average room rate increased by more than 30%, the average daily haul from hotel rooms rose by 35% Y/Y.

Atlantic City Casino Revenue December 2019

  • 2014: $1.442 million
  • 2015: $1.117 million
  • 2016: $1.166 million
  • 2017: $1.063 million
  • 2018: $1.676 million