Atlantic City Casino Revenue July 2019
The New Jersey Division of Gaming Enforcement (NJDGE) released third-quarter revenue figures for nine Atlantic City casinos.
- Press Of Atlantic City
- Atlantic City Casino Revenue July 2019 Calendar Printable Free
- Atlantic City Casino Revenue July 2019
- Atlantic City Casino Revenue Reports
- Atlantic City Casino Revenue July 2019 Calendar Printable Free
The total net revenue for the NJ casinos came in just shy of $929 million for July through September. The figure is good for a 2.7% increase compared to the same period in 2018.
May 08, 2020 For 2019 as a whole, total revenue was up 9.5% to $3.16b, despite every casino besides Hard Rock and Ocean (and the two digital-only ops) reporting negative revenue growth. The Borgata fell 1.3% to. Atlantic City's casinos won almost $3.3 billion from gamblers in 2019, helped by surging sports and internet bets as the seaside resort continued to rebound from a mid-decade meltdown that saw five casinos close. Figures released Tuesday by the New Jersey Division of Gaming Enforcement show the nine casinos collectively won $3.29 billion in 2019, an increase of over 15% from 2018. Aug 15, 2019 Total gaming revenue for Atlantic City’s nine casino properties was $323.3 million in July, an increase of 7.8% over last summer, according to figures released Wednesday by the state Division of.
Gross operating profits were also on the rise, increasing 12.5% to $239.4 million when compared to the third quarter of 2018.
The AC casino quarterly report marks the first time revenue and profits could be compared to the prior year with the same nine casinos in operation today.
The quarterly report contains a mixed-bag of metrics that can provide a bird’s-eye view of how the industry and the region are doing.
It includes:
- Net Revenue (+2.7%): Casino revenue, minus promotions, plus other revenue, such as rooms and dining.
- Gross Operating Profit (+12.5%): The earnings before interest, taxes and payments to affiliates.
- Third-Party Business Sales (+18.7%): The sales from vendors that lease space at a casino.
- Tourism Indicators: Average occupancy (+2.6%) and room rate information for each of the casinos.
How AC casinos fared
Borgata Casino continues its dominance, nearly doubling the net revenue of its nearest competitor with $235.5 million. Even so, it is a slight decrease (0.3%) from last year.
It is the nearest competitor, that is a big surprise. Hard Rock Atlantic City came in second at $128.4 million, up an impressive 27.7% over its first months of operation in 2018.
The only other casino to report double-digit net revenue growth in the third quarter is the other newcomer to the Boardwalk, Ocean Casino (27.4%), with $79.9 million.
At the back of the pack is Resorts, posting $49.6 million in net revenue. On the bright side, along with Hard Rock and Ocean casinos, Resorts is the only other casino returning a positive net revenue number (+1.3%).
Bally’s Atlantic City was the hardest hit. It posted a net revenue number ($60.8 million) that puts it second from the bottom, down nearly 9.3% from last year. That is the largest percentage decrease for the group.
More good news for Atlantic City casinos
Casino Control Commission Chairman James Plousis spoke to the Press of Atlantic City about other key indicators from the third quarter:
“Positive trends also continued with important tourism indicators. Nongaming amenities continue to create a competitive advantage, and visitors like the diverse dining, entertainment and leisure activities that Atlantic City has to offer.”
Specifically, the industry’s hotel room occupancy came in above 90%, up 8% from last year.
The big winner was Ocean Casino. It reported a 99.6% occupancy rate and also commanded the highest average price at $219 per night.
On the bottom of the totem pole is Tropicana, with an 80.9% occupancy rate, the lowest of the nine casinos.
Additionally, Golden Nugget comes in with the lowest average nightly room rate of $90.25, nearly $71 less than the industry average.
Press Of Atlantic City
What AC casinos Q3 revenue report tells us
Obviously, a bunch of positive year-over-year numbers is a good thing.
The good news comes at a time when many are questioning the need to limit the number of AC casinos, citing market saturation, and protecting the viability of the existing properties.
It’s true that one quarterly profit statement doesn’t provide enough data to support either side of the argument. Though it does make it a bit harder to support the saturation argument when the market is returning substantial numbers.
The real key to Atlantic City’s overall health is nongaming revenue. It came in at 3.5% above the same period last year.
There is evidence that Atlantic City is continuing to shift toward a Las Vegas model. Nongaming revenue in AC now represents over 47% of total revenue. The Las Vegas nongaming revenue comes in at 65% of total revenue.
Rummy Pandit, executive director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism at Stockton University, commented on the report in the same Press of Atlantic City article.
“Continued overall growth in gaming and nongaming revenues for the destination … clearly demonstrates that not only is the top line strong but the bottom line is showing greater operational efficiency and resilience.”
Atlantic City casinos posted positive net revenue growth for the last six quarters. Year to date, however, the industry is down 4.5% compared to 2018.
It isn’t a surprise that Atlantic City is a seasonal destination. Nonetheless, if AC can continue to increase its nongaming revenue, it may successfully transition into a destination similar to Las Vegas.
If so, banking on a strong season to support the industry for the entire year will be a thing of the past.
Maybe the constant discussion around market saturation and capping casinos will then fall by the wayside.
ATLANTIC CITY, N.J. (AP) — Atlantic City’s casinos won almost $3.3 billion from gamblers in 2019, helped by surging sports and internet bets as the seaside resort continued to rebound from a mid-decade meltdown that saw five casinos close.
Figures released Tuesday by the New Jersey Division of Gaming Enforcement show the nine casinos collectively won $3.29 billion in 2019, an increase of over 15% from 2018.
When an additional $300 million in sports betting revenue is added to the equation, the casinos and two racetracks that offer sports betting won $3.46 billion last year, a figure that does not include money from horse racing bets.
It marked the first year since 2012 that Atlantic City’s casinos had won more than $3 billion from gamblers.
That was right before a brutal stretch from 2014 to 2016 that saw five of the then-12 casinos shut down, and more than 11,000 jobs lost.
The reopening in 2018 of the former Trump Taj Mahal as Hard Rock and the former Revel as the Ocean Casino Resort has brought added revenue and jobs to the market.
But those same two new casinos also are diluting the profitability of the seven casinos that were in business before they reopened. For the first three quarters of 2019, the nine casinos reported a cumulative gross operating profit of $484 million, down 4.5% from the same period in 2018.
“The revenue increase is a positive,” said David Schwartz, a gambling historian with the University of Nevada Las Vegas. “Right now the industry should be in ‘grow-the-market’ mode rather than seeking to consolidate profits, so a decrease in profits isn’t necessarily the worst news we could get. Overall, what Atlantic City needs right now is to improve its image and marketing and become a destination in a crowded Northeast casino market.”
Atlantic City Casino Revenue July 2019 Calendar Printable Free
Rummy Pandit, a gambling analyst with Stockton University, said Atlantic City has successfully diversified its gambling offerings, particularly through sports betting and internet gambling. Those two products, developed since November 2013, now account for more than 18% of Atlantic City’s winnings, he said.
Atlantic City Casino Revenue July 2019
The news was not all positive. Five of the nine casinos won less money in 2019 than they did in 2018. Tropicana was down 8.2% to $349.5 million; Harrah’s was down 6.1% to $312.6 million; Bally’s was down 5.4% to $181.5 million; Caesars was down 3.7% to $270.9 million; and Resorts was down 3.2% to $178.4 million.
The Golden Nugget was up 15.4% to $378.4 million. It finished the year as the No. 2 casino in Atlantic City in terms of revenue. The perennial leader, Borgata, was up 3.5% to $797.8 million.
There was no year-to-year comparison for the newest casinos, which had not been open for a full year in 2018. For 2019, Hard Rock won $350 million, and Ocean won $238 million.
New Jersey had a banner year at sports betting, with nearly $4.6 billion wagered on pro and college games.
The state won a landmark U.S. Supreme Court case in 2018, clearing the way for all 50 states to offer legal sports betting should they so choose. Since the first bets were taken in New Jersey in June 2018, more than $5.8 billion has been wagered on sports, putting the state right behind Nevada in the race to lead the burgeoning market.
Atlantic City Casino Revenue Reports
The Meadowlands Racetrack in East Rutherford, just outside New York City, was the runaway leader in sports betting revenue with just under $150 million. It is partnered with the FanDuel sportsbook. The other racetrack to offer sports betting, Monmouth Park in Oceanport, won nearly $26 million in sports bets. Resorts Digital, which is affiliated with the DraftKings online sports book, won nearly $80 million on sports.
Internet gambling also continued to be a bright spot in 2019, with $482 million won online from gamblers, an increase of more than 61% over 2018. In the month of December, nearly $558 million was wagered on sports in New Jersey, the second-best month ever, trailing only November’s total of nearly $563 million.
Atlantic City Casino Revenue July 2019 Calendar Printable Free
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