The nine casinos in Atlantic City saw their gross operating profit decline by nearly 30% in 1Q.
US.- According to figures released on Wednesday by the New Jersey Division of Gaming Enforcement (DGE), the nine casinos in Atlantic City experienced a decline in their gross operating profit during the first quarter of the year.
The casinos in Atlantic City suffered a decline of almost 30% in the first three-month period of 2019 when compared to the previous year when there were only seven functional facilities. The casinos posted US$87 million profit in the first quarter of the year.
Gross operating profit includes earnings before interest, taxes, depreciation, and other charges. When Hard Rock Atlantic City and Ocean Casino Resort opened in June 2018, executives in the city believed that the extra competition might drive down profits.
The nine casinos in New Jersey’s gambling hub reported US$250.7 million in total gaming revenue in April. As the DGE detailed, the industry has generated US$977.3 million in gaming revenue through the first four months of the year. The figure represents a 20.8% year-on-year increase when seven casino properties were operational.
Revenue from table games and slot machines in Atlantic City casinos reported an 8.4% growth to US$207.6 million in April. Despite these results, Borgata Hotel Casino & Spa was the only facility to report an increase.