15% Decline in profit for Atlantic City casinos
Between 2014 and 2016, five of Atlantic City's 12 casinos closed in a difficult operating climate. Although we're now in 2019, the city never quite recovered even though last June saw the opening of the Ocean Resort Casino and the Hard Rock.
In 2018, profit was down 15% to $582m even though revenue was up by 7% to $2.9 billion. The explanation for the decline was mainly influenced by the 41% decline in gross operating profit after taking into account business investment designed to lure in new customers.
There were only two casinos with an increase in operating profit in 2018. These were the Tropicana and the Golden Nugget. while Ocean Resort reported an operating loss of $17.8 million and Hard Rock reported an operating loss of $9.1 million. The Hard Rock President Joe Lupo expressed satisfaction with the volumes and momentum go into 2019.
How will Atlantic City casinos perform in 2019? While we can't be certain, investments to attract new players as well as momentum going in 2019 may be just what the doctor ordered, so stay tuned!