Atlantic City casino profits up in Q2 but more competition is on the way

Seven of Atlantic City’s eight surviving casinos enjoyed a profit boost in the first half of 2015, but more regional competition is headed their way.

Figures released on Monday by the New Jersey Division of Gaming Enforcement showed total revenue – including both land-based and online gaming, hotel, food & beverage, et al – at AC’s eight gaming venues rose 2.6% to $875.3m in the three months ending June 30. More importantly, operating profits were up 28.3% to $132.1m.

Of the five casinos to post year-on-year gains, the Borgata led the way, with revenue up 2.8% to $247.4m. The biggest year-on-year improvement came from the Golden Nugget, which gained 16.3% to $71.1m. At the other end of the revenue spectrum, the Trump Taj Mahal fell 12.4%, while Bally’s was down 3.3% and Caesars AC slipped 1.5%.

The Taj was also the only casino to record a profit decrease in Q2, falling a hefty 150% to a net loss of $900k. The Golden Nugget shone in this category as well, with profit up 902% to $7.8m. Resorts also exceeded expectations, boosting profits by 153% to $4.9m.