In 2018, Atlantic City casino profits dropped more than 15% due to competition within the casino industry. The full year gross reports for nine casinos in the city were reported by the New Jersey Division of Gaming Enforcement. The gross operating profit for the gaming industry dropped to 15.4 %. Back in 2014 and 2016, five Atlantic City’s casinos closed down because of a decrease in gross operating profits. These five casinos were functioning until new casinos – Ocean Resort and Hard Rock – opened last year June causing profits to decrease.
Atlantic City Facing Overpopulated Casino Market
A gross operating profit is the money that is calculated prior to tax, interest and other charges incurred, a system Atlantic City casino market uses to measure their profits. Golden Nugget and Tropicana are the only two casinos that increased their gross profits. While Borgata casino reported having the biggest decrease in profits. Chairperson of the New Jersey Casino Control Commission, James Plousis said that the profit margins were tight. On the other side of the coin many job opportunities were created and there are more people visiting Atlantic City.
Showboat owner, Bart Blatstein, took steps to obtain the gaming license for Boardwalk. The nine casinos gross profits will be affected if Bart Blatstein goes ahead with the gaming inquiry. Wayne Schaffel mentioned last year that if gaming profits don’t grow by 15% then competition will be rife.
It is evident that the gambling industry is growing and more competition means Atlantic City casinos need to adapt and maybe change things a bit.