Operating profits at Atlantic City’s nine casinos declined by 9.3% to $162.4 million in the second quarter, indicating a clear trend of decreasing profitability in the city’s casinos.
The overall decline, including online-only Caesars Interactive Entertainment New Jersey, was 10.1% according to the New Jersey Division of Gaming Enforcement’s data. While all nine casinos remained profitable, only Ocean Casino Resort and Caesars Atlantic City showed year-on-year profit increases.
“Even with seasonal variation taken into account, there is a noticeable trend in decreasing gross operating profit in the relatively mature integrated casino resort market in Atlantic City, resulting in steady net earnings year-over-year,” said Brian Tyrrell, director of Stockton’s Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism as reported by the Press of Atlantic City.
Borgata Hotel Casino & Spa recorded the highest profit at $60.1 million, a decrease of 4.7%. Ocean followed with $30.1 million, up 12.2%, while Hard Rock Hotel & Casino Atlantic City reported $29.1 million, a 10.5% decrease.
Tropicana Atlantic City’s profit decreased by 8.7% to $13.5 million, while Caesars reported $12.9 million, a 2.9% increase. Harrah’s Resort Atlantic City reported just over $11 million, down 6.8%.
Golden Nugget Atlantic City saw a 43% decline in profit to $2.9 million, while Bally’s Atlantic City reported $2.1 million, down 8.8%. Resorts Casino Hotel saw a significant decline of over 95% to $473,000. Caesars Interactive recorded an operating profit of $2.4 million, down 43.5%.
“Revenue at Atlantic City casinos does not always directly translate to profitability,” added Tyrrell.
Gross gambling revenue increased by 7.3% in the first half of 2026 compared to the same period in 2025, while net revenue rose by 0.2%. However, gross operating profit saw a significant decline of 15.5%.
Tyrrell attributed the pressure partly to higher costs for goods and labor, as well as increased expenses for internet and sports betting, which added $120 million in costs for casinos and their partners.
Resorts President Mark Giannantonio attributed the casino’s profit decline largely to a deferred revenue payment from PokerStars in 2025 that was not repeated this year after their contract ended in 2025.
New Jersey Casino Control Commission Chairman James Plousis noted that the casinos faced their highest second-quarter costs and expenses in nine years. Despite the profit decline, he emphasized that stable net revenue and hotel occupancy indicated that the casinos continued to compete for gaming and leisure tourists.
Ocean recorded the highest hotel occupancy at 87.1%, while Golden Nugget had the lowest at 53%. Ocean also posted the highest average nightly room rate at $269.24, compared to $109.96 at Golden Nugget.
Overall, the Atlantic City casino market potentially faces changes from new casinos planned in New York City and ownership changes among its existing operators.
A pending sale of Caesars Entertainment to Golden Nugget owner Tilman Fertitta could significantly impact Atlantic City’s market, with the potential need for New Jersey regulators to assess the ownership structure for compliance with state laws against undue economic concentration.
Meanwhile, Bally’s Corp. highlighted challenges as they work to develop new casinos in New York, Chicago, and Las Vegas.