Atlantic City casinos reported declining profits in Q3 2024, though all nine properties remained profitable. The New Jersey Division of Gaming Enforcement's latest report shows collective gross operating profits fell 13.8% to $236.6 million, while net revenue decreased 2.5% to $925 million.

Only Hard Rock and Caesars saw profit increases, up 2.4% and 11.2% respectively. The remaining casinos experienced profit declines ranging from 10.9% at Bally's to 43.8% at Golden Nugget.

Hotel occupancy decreased 1.5% to 84.1%, with average nightly rates dropping 8% to $201. Ocean Casino commanded the highest rates at $336, while Golden Nugget offered rooms at $125.

Year-to-date figures through September show:

• Net revenue remained flat at $2.54 billion
• Overall profits declined 9% to $576.6 million
• In-person gaming revenue fell 1.6% to $2.36 billion
• Online casino revenue increased 24% to $1.94 billion
• Sports betting revenue grew 14% to $912.8 million

The industry faces ongoing challenges including:

• Increased regional competition
• Rising inflation and labor costs
• Higher operational expenses
• Shifting consumer preferences post-COVID
• Revenue sharing with third-party online gaming partners

Despite these challenges, this marks the third consecutive year Atlantic City's casinos have exceeded $2.5 billion in revenue through the first nine months.

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