Published on: May 25, 2026, 10:47h.
Updated on: May 25, 2026, 10:47h.
- Atlantic City casino earnings dropped 23% in Q1
- Increased costs cited against stagnant net revenue
- Two casinos reported negative operating profits
In 2025, Atlantic City casino profits declined by 4%. The first quarter of 2026 witnessed a further contraction in profit margins.
According to the New Jersey Division of Gaming Enforcement (DGE), the nine casinos collectively recorded a gross operating profit of $104.7 million in the initial three months of 2026. This marks a 22.9% decrease compared to Q1 last year.
Gross operating profit indicates earnings before interest, taxes, depreciation, amortization, affiliate charges, and other assorted expenses. The DGE identifies it as a “commonly accepted profitability metric in the Atlantic City gaming sector.”
Only Bally’s and Caesars reported a profit increase, though Bally’s continued to operate at a loss. Golden Nugget also experienced an operating loss in the first quarter.
Seven out of nine casinos, including key players like Borgata, Hard Rock, and Ocean, reported a reduction in profits.
Increased Costs at Play
From January to March 2026, Atlantic City casinos amassed a net revenue of $725.6 million.
Net revenue encompasses income from casino gaming, hotel sales, food and beverage services, as well as entertainment and events within the resorts. The revenue figures remained flat year-over-year, attributed to escalating costs associated with labor, goods, and services affecting overall profits.
Atlantic City’s stable net revenue during the first quarter highlights persistent economic challenges. The casino hotels faced their highest Q1 costs and expenses in nearly a decade, which severely impacted gross operating profits,” stated James Plousis, chairman of the New Jersey Casino Control Commission.
Borgata retained its position as the most lucrative casino, although its profits of $39.7 million represented an 18% decline. Hard Rock followed with $19.7 million, down 25%, while Ocean ranked third with $18.7 million, reflecting a 17% drop.
Despite the mounting economic pressures expected in the coming years, particularly with three new casinos set to open in New York City, Plousis offered an optimistic outlook for Atlantic City’s future.
“In the past five years, over $1.3 billion has been invested by casino operators into their Atlantic City properties, enhancing visitor experiences with top-tier gaming, recreation, dining, and entertainment options. Recent tours of the casino hotels during the off-season underscored significant improvements and a steadfast commitment to the market. Atlantic City is poised for an exhilarating summer season,” Plousis asserted.
The nine resorts are in dire need of a successful summer.
Their investments appear to be attracting both new and returning visitors, as hotel occupancy rates increased from 62.9% in Q1 2025 to 64.6% in 2026. Additionally, the average room rate rose from $159.13 to $161.03.
However, the increases in occupancy and room rates were insufficient to counteract the persistent rise in operating expenses.
Q2 Off to a Promising Start
The second quarter for Atlantic City casinos initialized strongly, particularly in gaming revenue.
Casinos reported in-person gaming revenues of $235.6 million, marking a 12-year high for April, which is a 12% increase compared to April 2025. Atlantic City’s gross gaming revenue recorded a 1.6% rise in January, a slight decline of 0.3% in February, and a 2.5% increase in March.
However, May may not sustain this momentum due to a rainy Memorial Day weekend and rising fuel prices that have impacted travel plans.