In 2025, Atlantic City’s casinos faced a decline in profits due to increasing operational expenses, with gross operating profit decreasing by 3.9% to $681.6 million, even as net revenues remained stable. This trend raises concerns as the city braces for competition from new casinos in New York City and potential expansions in other areas of New Jersey.
The New Jersey Division of Gaming Enforcement reported that the drop in profits for the city’s nine casinos and two online-only operators was attributed to rising costs in labor, energy, and goods.
James Plousis, chairman of the New Jersey Casino Control Commission, stated, “Atlantic City reported stagnant annual net revenue and a decrease in gross operating profit for the fifth consecutive year due to escalating costs.”
Despite these challenges, Atlantic City ended the year positively, with the fourth quarter net revenue being the highest since 2018, indicating strong competition for regional gaming and tourism.
Excluding the two online operators, Caesars Interactive Entertainment and Resorts Digital, the nine casinos collectively reported a gross operating profit of $665.4 million, reflecting a 1.4% decline year-over-year. Gross operating profit is a key metric for assessing profitability in the Atlantic City market.
Jane Bokunewicz, director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism, noted that casino operators are adapting to competitive pressures through capital improvements and marketing strategies aimed at attracting customers.
However, the returns on these investments have been slow, partly due to external factors like inflation that have dampened the effectiveness of revenue-generating initiatives. Operators have also been scrutinizing their expenses to optimize gross operating profit, but many costs, such as wages and energy prices, have been influenced by outside variables.
Bally’s was the only casino to report an operating loss, shifting from a $2.5 million profit in 2024 to a $2.8 million loss in 2025. In contrast, Borgata Hotel Casino & Spa achieved the highest gross operating profit at $237.4 million, a 13.8% increase from the previous year.
Other casinos reported varying results: Hard Rock Hotel & Casino Atlantic City saw a profit of $123.8 million, down 8.6%, while Ocean Casino Resort posted $112 million, up 10.6%. Tropicana Atlantic City reported a profit of $61.7 million, down 25%, and Harrah’s Resort Atlantic City earned $56.5 million, down 12%. Caesars Atlantic City experienced a significant drop to $34.1 million, over 40% lower, while Golden Nugget Atlantic City increased its profit to $28.2 million, nearly a 57% rise.
Resorts Casino Hotel reported $14.2 million in profit, with year-over-year comparisons affected by a reporting change after Resorts Digital surrendered its casino license in September 2024.
In terms of hotel performance, Ocean Casino Resort had the highest average nightly room rate at $275.87, while Golden Nugget reported the lowest at $112.65. The citywide average room rate stood at $175.16. Hard Rock achieved the highest occupancy rate at 83.7%, while Golden Nugget had the lowest at 51.8%, resulting in an overall occupancy rate of 71.2%, a slight decrease from the previous year.
This decline in profits comes as New York City plans to develop three new casinos, including projects associated with Bally’s and Hard Rock. New Jersey Governor Mikie Sherrill has acknowledged the potential impact of this new competition, while lawmakers are also considering asking voters about the future of casino gaming in the state.