ATLANTIC CITY, N.J. – Atlantic City’s casinos saw their profits tumble in the first quarter as rising labor and operating expenses continued to squeeze the industry, state regulators said Monday.
The nine casinos reported a combined gross operating profit of $104.7 million from January through March, according to the New Jersey Division of Gaming Enforcement. That was down 22.9% from the same period a year ago and follows a 4% profit decline in 2025.
Gross operating profit — earnings before interest, taxes, depreciation, amortization and other charges — is the industry’s standard measure of profitability.
Only Bally’s and Caesars posted year‑over‑year profit gains, though Bally’s remained in the red. Golden Nugget also reported an operating loss. Seven casinos, including market leaders Borgata, Hard Rock, and Ocean, saw profits shrink.
Casinos generated $725.6 million in net revenue during the quarter, essentially flat from a year earlier. Net revenue includes gambling, hotel rooms, food and beverage sales, and other resort amenities.
Regulators said higher expenses — particularly for labor, goods, and services — erased any benefit from stable revenue.
“Atlantic City reported flat net revenue in the first quarter, a reflection of ongoing general economic pressure,” said James Plousis, chair of the New Jersey Casino Control Commission. “The casino hotels also encountered their highest first‑quarter costs and expenses in nine years, significantly constraining reported gross operating profits.”
Borgata remained the city’s top‑earning property, though its $39.7 million profit represented an 18% decline. Hard Rock was second at $19.7 million, down 25%, followed by Ocean at $18.7 million, down 17%.
Plousis said operators remain committed to the market despite rising costs and looming competition from three full‑scale casinos expected to open in New York City later this decade. He noted that Atlantic City casinos have invested more than $1.3 billion in property upgrades over the past five years.
“During my recent off‑season tours of each casino hotel, it was clear that notable improvements have continued, and a high level of commitment to the market has not wavered,” he said. “Atlantic City is ready for an exciting summer season.”
Hotel metrics showed modest improvement. Casino‑hotel occupancy rose from 62.9% in the first quarter of 2025 to 64.6% this year, while the average nightly room rate increased from $159.13 to $161.03. Those gains were not enough to offset higher operating costs.
The second quarter began on stronger footing. Casinos won $235.6 million from in‑person gamblers in April, a 12-year high for the month and up 12% from April 2025. Gaming revenue rose 1.6% in January, fell 0.3% in February, and increased 2.5% in March.
May could be softer, however, as a rainy Memorial Day weekend and higher gas prices were expected to dampen travel.
