Gaming activities at Ocean Casino Resort are currently paused following a fire that activated the property’s fire suppression system.

A small fire erupted in the linen room early Monday (July 27), leading to the closure of the Atlantic City Boardwalk casino. The fire set off water sprinklers, which extinguished the flames, but eyewitnesses noted the presence of heavy smoke during the incident.

The fire suppression efforts resulted in a burst pipe, causing a partial ceiling collapse in the casino’s main lobby. As a result, Ocean Casino Resort has temporarily shut down its gaming area while maintenance crews assess the situation.

“Due to unforeseen circumstances surrounding a water pipe burst that caused damage, gaming at Ocean Casino Resort will be unavailable for the time being,” the casino announced on its website and social media platforms.

This disruption impacts all gaming operations, including slots, table games, and sports betting. Additionally, a scheduled slot tournament with a prize pool of $30,000 was canceled, which was set to occur from 1 PM to 8 PM today.

Despite the gaming closure, the resort continues to function at a limited capacity, with hotel accommodations, most dining options, and pool access still available for guests.

Financial Impact of Casino Closure

Ocean Casino Resort is among the top-performing casinos in Atlantic City. In Q1, the resort garnered a gross operating profit of $18.8 million, which positioned it third, just behind Borgata ($39.8 million) and Hard Rock ($19.8 million).

Recognized as a luxury destination within the Atlantic City landscape, Ocean commands premium room rates.

During the first quarter, typically a slow season for the area, Ocean achieved an average nightly rate of $234 for its 1,860 guest rooms, with a reported occupancy rate of 74.6%. Only Hard Rock surpassed this, with an occupancy rate of 78.2%, while maintaining an average room rate of $143 for its 1,973 rooms.

Ocean also leads in gaming revenue, with its slots generating $164.1 million from January to June, complemented by table games that retained $69.1 million of player bets. The casino’s retail sportsbook, powered by Fanatics, reported a gross sports betting revenue of $504,000.

Last July, Ocean’s gross casino revenue reached $43.1 million, translating to approximately $1.39 million daily, underscoring the significant financial repercussions of today’s incident involving the burst pipe.

New Management at Ocean Casino Resort

In June, Ilitch Gaming, a new gaming division of Ilitch Holdings, completed the full acquisition of Ocean Casino Resort.

The Ilitch family, renowned for founding Little Caesars, originally purchased a 50% stake in the Atlantic City venue in 2021 for $175 million. Ilitch Gaming subsequently acquired the remaining shares from private equity firm Luxor Capital for an undisclosed sum.