The operating profits of Atlantic City's nine casinos fell by 9.3% to $162.4 million in the second quarter, indicating a troubling trend of diminishing profitability, according to a Stockton University analyst.
When including the online-only Caesars Interactive Entertainment New Jersey, the overall decline reached 10.1%, as reported by the New Jersey Division of Gaming Enforcement. Despite all nine casinos remaining in the black, only Ocean Casino Resort and Caesars Atlantic City saw year-on-year profit increases.
Brian Tyrrell, director of Stockton's Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism, noted, “There is a discernible trend in decreasing gross operating profits, even as Atlantic City's established integrated casino resort market has maintained stable net earnings annually.”
The Borgata Hotel Casino & Spa led in profits with $60.1 million, although this was a 4.7% decrease. Ocean Casino followed with $30.1 million, marking a 12.2% increase, while Hard Rock Hotel & Casino Atlantic City reported $29.1 million, down 10.5%.
Tropicana Atlantic City posted $13.5 million, down 8.7%, and Caesars reported $12.9 million, a slight increase of 2.9%. Harrah’s Resort Atlantic City earned just over $11 million, down 6.8%.
Golden Nugget Atlantic City saw a significant profit drop of 43%, bringing its total to $2.9 million, while Bally’s Atlantic City reported $2.1 million, a decrease of 8.8%. Resorts Casino Hotel experienced a staggering decline, posting only $473,000, a drop of over 95%. Caesars Interactive recorded an operating profit of $2.4 million, down 43.5%.
Tyrrell pointed out that revenue at Atlantic City casinos does not necessarily equate to profitability.
In the first half of 2026, gross gambling revenue rose by 7.3% compared to the same period in 2025, while net revenue increased by 0.2%. However, gross operating profit saw a significant decline of 15.5%.
The analyst attributed some of this pressure to rising costs for goods and labor, alongside increased expenses related to internet and sports betting, which added approximately $120 million to costs for the casinos and their partners.
Resorts President Mark Giannantonio linked his casino’s profit drop to a deferred revenue payment from PokerStars in 2025, which was not repeated this year after their contract ended.
New Jersey Casino Control Commission Chairman James Plousis remarked that the casinos faced their highest costs and expenses in the second quarter in nine years. Despite the profit decline, he noted that stable net revenue and hotel occupancy rates indicate that casinos are still competing effectively for gaming and leisure tourists.
Ocean Casino achieved the highest hotel occupancy rate at 87.1%, while Golden Nugget had the lowest at 53%. Ocean also boasted the highest average nightly room rate at $269.24, compared to Golden Nugget's $109.96.
Overall, the nine casino-hotels had an occupancy rate of 73.2% and an average nightly room rate of $171.71.
Atlantic City’s casino market is also poised for potential shifts due to new casinos planned in New York City and changes in ownership among existing operators.
A proposed sale of Caesars Entertainment to Tilman Fertitta, owner of Golden Nugget, could significantly impact Atlantic City’s market. If this deal goes through, Fertitta’s company would control four of the city’s nine casinos.
New Jersey regulators would need to evaluate whether this ownership structure contravenes state laws against excessive economic concentration, which could lead to mandates for the sale or closure of one or more casinos.
Meanwhile, Bally’s Corp. is facing hurdles as it seeks to develop casinos in New York, Chicago, and Las Vegas.