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US – Atlantic City casinos more profitable as GGR stays steady

By - 11 April 2017

The New Jersey Division of Gaming Enforcement confirmed that gross operating profits in the fourth quarter reached $118.1m up from $99.8m in 2015, according to figures from the state. Gross operating profits for the year as a whole increased by 7.3 per cent to $587.4m.

Gross Gaming Revenue included internet revenues came in at $3.71bn in 2016 compared to $3.7bn in 2015. At its peak Atlantic City had 12 casinos but the long suffering downturn has seen five venues close. The big change last year for the remaining casinos was the closure of the Taj Mahal. Gross gaming revenue for 2016 came in at $2.5m, an increase of nearly one per cent over 2015.
Colin Mansfield of Fitch Ratings said of the Taj Mahal gambling spend: “Most of that has gone back into the market. Properties are using the same amount of people and having more business come in.”

David Rebuck, Director of the Division of Gaming Enforcement, said: “The casino industry was able to grow net revenue and improve its cost efficiency. It is significant, in my view, that every casino hotel was able to show improvement in gross operating profit in the historically slower fourth quarter of the year. When this recent operational momentum is combined with the growth in casino revenues thus far in 2017, especially from internet operations, I am optimistic that the casino hotels can continue to improve operating results during 2017. I am encouraged by these results and the stability that exists in the industry after many years of revenue declines.”

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