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Casinos in Atlantic City, New Jersey, witnessed an impressive 22.5% rise in gross operating profits in 2017.
The data released on Monday by the New Jersey Division of Gaming Enforcement (DGE) reveal that casinos located in Atlantic City experienced a 22.5% hike in gross operating profits in 2017, which is 5% more than the net gaming revenue over the previous year.
Almost all of the city’s seven casinos posted significant gains, reporting approximately US$133 million in gross operating profit from 2016. Overall casino net revenue jumped to US$2.67 billion for the 12-month period, up from the US$2.5 billion registered during the same period in 2016. Those figures include online gambling net revenue as well.
Christopher Glaum, deputy chief of financial investigations for DGE, said: “In a positive sign for the Atlantic City casino industry, three casino hotels reported record net revenue and gross operating profit under current ownership and both Internet casino licensees had their best year as well. Industry-wide, strong growth in net revenue led to gross operating profit growth in excess of 20 per cent for the year. These operating results bode well for the industry expansion expected to occur in mid-2018.”
Total revenue increased 0.9 per cent to US$3.54 billion and combined sales (which include sales from third-party businesses as defined) increased 0.5 per cent to US$3.74 billion for the twelve months ended December 2017.
James Plousis, Chairman of the Casino Control Commission also talked about the opening of both Hard Rock Hotel & Casino Atlantic City and Ocean Resort Casino and said: “The industry is on the verge of a significant expansion this summer which will create a new array of attractions and attract a lot of additional visitors to the city. That expansion may put pressure on the current operators, but I think the industry is well positioned to deal with the new competition.”
Source: European Gaming Media and Events