Atlantic Metropolis casinos generated considerably extra income in 2022 than the 9 properties did in 2021, however their backside strains collectively declined practically 5%.
The Atlantic Metropolis Boardwalk is pictured on Thursday, July 7, 2022. Atlantic Metropolis casinos noticed their income decline by nearly 5% final yr. (Picture: NJ Advance Media)
The New Jersey Division of Gaming Enforcement (DGE) issued web income and gross working reviews for the 9 Atlantic Metropolis casinos on Tuesday. The information offered regarding numbers, as solely two of the 9 casinos reported larger income in contrast with 2021.
Full-year web income was greater than $3.3 billion, a 9.3% year-over-year leap, however gross working income dropped 4.6% to $731.2 million. The revenue decline represents an earnings lack of about $35.6 million.
Borgata, the richest property in Atlantic Metropolis, noticed its working revenue decline greater than 19% to $140.3 million.
Arduous Rock and Ocean, the most recent casinos on the town that each opened in June 2018, have been the 2 winners. The Boardwalk resorts respectively noticed income enhance by nearly 20% and 6% to $128 million and $96.2 million.
(Picture: New Jersey Division of Gaming Enforcement)
Bills Outpacing Income
The month-to-month gross gaming income (GGR) reviews for Atlantic Metropolis learn effectively final yr, because the 9 casinos continued to generate larger earnings on their gaming flooring and on-line channels.
2022 GGR from brick-and-mortar casinos, iGaming, and retail and cell sports activities betting totaled greater than $5.2 billion, an all-time document excessive that simply eclipsed the state gaming trade’s earlier better of $4.8 billion set in 2007.
The 9 casinos have been stressing that the gross income reviews are deceptive as they relate to the general well being of the brick-and-mortar resorts. The trade argues that a lot of the gross income generated on-line via iGaming platforms and on-line sportsbooks is retained by the casinos’ third-party companions like DraftKings and FanDuel.
Greater overhead, a results of the US experiencing document inflation final yr, additionally significantly impacted income as bills outpaced the stronger web income.
You could have income that’s not rising quick sufficient, and couple that with bills in some classes which are up 25% or extra, and you may see how shortly this will erode income,” Resorts On line casino President Mark Giannantonio advised the Related Press.
The ultimate three months of 2022 have been particularly poor as income tumbled practically 32% to $119.3 million.
Smoking Debate Impression
The 2022 revenue reviews for the Atlantic Metropolis on line casino trade gained’t do any favors for the grassroots coalition that’s looking for to get rid of indoor tobacco smoke from the gaming properties. The trade has been strongly against these efforts and has argued {that a} full smoking ban would put Atlantic Metropolis at a aggressive drawback with casinos in close by Philadelphia the place indoor on line casino smoking additionally stays permitted.
The On line casino Affiliation of New Jersey, which Giannantonio heads, tasks that annual land-based gaming would decline by as a lot as 25% within the first yr following a smoking ban. That will result in 2,500 job losses, the trade claims.
Smoking opponents may counter that regardless of on line casino income dropping nearly 5% final yr, all however one — Bally’s — was nonetheless worthwhile. Bally’s is present process a substantial renovation that continues to maintain bills far larger than income.
