Increased operational expenses have led to a decline in profits for Atlantic City casinos in 2025, with gross operating profits decreasing by 3.9% to $681.6 million, despite stable net revenue. This trend raises concerns as Atlantic City braces for competition from new casinos in New York City and renewed initiatives to permit gaming in other areas of New Jersey.
The drop in operating profits for the city’s nine casinos and two online-only operators is attributed to ongoing raises in costs related to labor, energy, and goods, as highlighted by a report from the New Jersey Division of Gaming Enforcement.
“In 2025, Atlantic City experienced stagnant annual net revenue along with a reduction in gross operating profit, marking the fifth consecutive year of rising costs and expenses,” remarked James Plousis, chairman of the New Jersey Casino Control Commission.
“Even though the pressures facing the casino industry mirror those felt by broader businesses, Atlantic City wrapped up the year on a positive note. The fourth quarter net revenue reached its highest point since 2018, and the city is effectively competing for the regional gaming and tourism market,” he added.
Land-Based Results Exhibit a Slight Decline
When excluding the two online entities—Caesars Interactive Entertainment and Resorts Digital—the nine casinos together reported a gross operating profit of $665.4 million, a decrease of 1.4% year-over-year. Gross operating profit is a key metric used to evaluate profitability in Atlantic City, reflecting earnings before interest, taxes, depreciation, amortization, affiliate charges, and other expenses.
“Casino operators in Atlantic City are adapting to competitive pressures through various strategies,” noted Jane Bokunewicz, director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism. “These initiatives include capital enhancements and investments in marketing and promotional efforts to set themselves apart from competitors and ignite consumer interest and patronage.”
“However, the return on these investments is unfolding slowly, partially due to external factors such as inflation that seem to have muted the impacts of these revenue-enhancing strategies,” she further commented. “Properties have also sought to optimize gross operating profit by meticulously analyzing their expenses. Yet, various operational costs, including wages, energy expenses, and the cost of goods sold, have been affected by outside influences.”
Property-Level Performance Varies Among Operators
Bally’s was the only casino to register an operating loss, moving from a $2.5 million profit in 2024 to a $2.8 million loss in 2025.
Borgata Hotel Casino & Spa achieved the highest gross operating profit at $237.4 million, marking a 13.8% annual increase. Hard Rock Hotel & Casino Atlantic City reported a profit of $123.8 million, a decline of 8.6%, while Ocean Casino Resort yielded $112 million, up 10.6%.
Tropicana Atlantic City saw a profit of $61.7 million, down 25%. Harrah’s Resort Atlantic City reported $56.5 million, a decrease of 12%. Caesars Atlantic City experienced a decline of over 40%, recording $34.1 million, while Golden Nugget Atlantic City saw a profit increase of nearly 57%, totaling $28.2 million.
Resorts Casino Hotel reported a profit of $14.2 million. Year-on-year comparisons are influenced by a reporting shift following the surrender of Resorts Digital’s casino license in September 2024.
Ocean Casino Resort set the record for the highest average nightly room rate at $275.87, while Golden Nugget reported the lowest at $112.65. The citywide average room rate was $175.16.
Hard Rock led in occupancy rates with 83.7%, while Golden Nugget lagged at 51.8%. The overall occupancy rate for casino hotels was 71.2%, down by less than 1% from the previous year. Room rate data includes the retail value of complimentary rooms.
New Competition Looming
The anticipated decline in profits is occurring as new casino developments are initiated in New York City, with three properties in the pipeline, including ventures associated with Bally’s and Hard Rock.
New Jersey Governor Mikie Sherrill has recognized the potential effects of fresh competition. Concurrently, lawmakers are pursuing efforts to gauge voter sentiment regarding the expansion of casino gaming beyond Atlantic City.
George Goldhoff, president of the Casino Association of New Jersey and of Hard Rock Hotel & Casino Atlantic City, stated: “Profit figures reflect a mixed and increasingly challenging landscape for New Jersey’s casino sector. Hotel occupancy rates are declining, showcasing the continuous pressures on visitor numbers. Atlantic City is grappling with mounting regional competition, broader economic challenges, and the looming possibility of further gaming expansion in the New York City area.“
“Even though the industry exhibits resilience, these figures highlight the critical need for operational efficiency and innovative strategies to address declining occupancy rates,” he continued. “They also emphasize the urgency for the State of New Jersey, the City of Atlantic City, the Casino Reinvestment Development Authority, and all stakeholders to take decisive measures to enhance the city’s appeal to visitors this summer.”
He mentioned that operators have invested hundreds of millions of dollars into their properties in recent years to ensure the delivery of high-quality experiences and sustain jobs that support economic activity throughout southern New Jersey.