A recent report from the New Jersey Division of Gaming Enforcement has revealed a profit decrease for Atlantic City Casinos during 2023.
New Jersey Division Of Gaming Enforcement Reveal Profit Decrease For Atlantic City Casinos
On Monday 8th April 2024, the report revealed that the nine Atlantic City Casinos in New Jersey have accumulated a total of $774.7 million in gross operating profit during 2023 – a 1.6% decrease from 2022.
Another key factor is when including the two internet-only casinos, the decline in profit was increased by 4.1% and totaled at $780m.
During 2023 each of the nine casinos were profitable, but just the three managed to achieve a final increase in profitability.
These final numbers have alerted the director of the Lloyd Levenson Institute at Stockton University, who has questioned the spending by the patron.
She said: “The figures suggest it is getting more expensive for New Jersey’s casinos to operate, and patron spending may not be keeping pace,”
“The same forces that might be tightening visitors’ purse strings — inflation, increased consumer prices — are also forcing operators to dig deeper into their pockets.”
Bokunewicz believes the increased amount spent on operational costs such as wages, more costly goods and the aim of improving customer experience with free play, rooms, meals and drinks has not seen the expected increase.
These figures could prove crucial in the current debate over the legislation of smoking in on-land casinos, which is currently allowed in Atlantic City sites.
A legal battle has been in the works for three years over stopping the ability to smoke inside the premises and a lawsuit was filed by the United Auto Workers Union in early April.
Atlantic City Casinos higher ups have said banning smoking will damage its chances at battling with competitors, but the on-site employees believe the competition that prohibit smoking are already outperforming the New Jersey casinos.
When looking at the internet casinos, Caesars Interactive Entertainment NJ earned $23.6m, a decrease of 28% and Resorts Digitial saw a 20.5% decrease with £12.2m.
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