Atlantic City casinos saw an increase in revenue in the second quarter, but faced challenges due to rising labor, goods, and service costs affecting their overall profits.
The Steel Pier Ferris wheel. Atlantic City casinos reported reduced operating profits in the second quarter of 2026. (Image: Shutterstock)
The New Jersey Division of Gaming Enforcement (DGE) reported that the nine casinos generated net revenue of $836.5 million for the quarter ending June 30, 2026. While this marked a 1.3% year-over-year increase in casino revenue and sales from various amenities, gross operating profits were down by 9.3% at $164.5 million.
The casino hotels faced significant cost challenges in the second quarter, impacting their reported gross operating profits,” James Plousis, chair of the New Jersey Casino Control Commission, stated.
With only two exceptions, Caesars and Ocean, all casinos reported lower profits, though all nine remained profitable. Borgata held its position as market leader, with a quarterly profit of $60.1 million, a 4.7% decrease.
(Image: NJ Division of Gaming Enforcement)
Challenges Ahead
Atlantic City casino profits are facing a downward trend.
For the first six months of the year, the nine resorts reported an operating profit of $265.3 million, a 14.9% decrease from the previous year. In 2024, the profits for the same period were $310.4 million, and in 2023, they totaled $328.3 million.
Despite higher revenues, with the resorts earning over $1.55 billion in the first six months this year compared to $32 million less in 2023, profits continue to decline.
Resorts experienced the largest profit drop, attributing it to a deferred revenue payment to PokerStars, a former online gaming partner, along with increased overhead costs. Additionally, iGaming and online sports betting revenue contributed more to the total casino revenue reported.
While online betting revenue boosts net gaming revenue, online gamblers are not as profitable as traditional gamblers who spend money on various resort amenities.
During the first half of the year, Atlantic City’s casinos managed to increase hotel room sales, with the occupancy rate rising to 69% despite flat rates at $167.
Continued Profitability
Despite challenges, all nine casinos in Atlantic City remain profitable.
“All casino hotels were profitable in the second quarter, with two reporting higher profits compared to the same period last year. Stable net revenue and hotel occupancy demonstrate the casinos continue to compete well for gaming and leisure tourists,” Plousis noted.
The future of Atlantic City will be crucial as three new New York City casinos prepare to increase their operations.
