Atlantic City's casino industry is feeling the squeeze. Despite maintaining steady revenue streams, our nine casino resorts saw their collective profits plummet by nearly a quarter in the first three months of 2026, according to data released today by the New Jersey Division of Gaming Enforcement.
The casinos posted a combined gross operating profit of $104.7 million from January through March — a 22.9% decline compared to the same period last year. This follows an already difficult 2025, when annual profits shrank by 4%.
Rising Costs Eat Into Bottom Lines
The culprit? Escalating operational expenses. While our casinos generated $725.6 million in net revenue during the quarter — essentially flat compared to last year — the cost of doing business has surged. Labor, goods, and services all became more expensive, creating a perfect storm that eroded profit margins across the industry.
"Atlantic City reported flat net revenue in the first quarter, a reflection of ongoing general economic pressure," explained James Plousis, chair of the New Jersey Casino Control Commission. "The casino hotels also encountered their highest first quarter costs and expenses in nine years, significantly constraining reported gross operating profits."
Only two of our nine casinos — Bally's and Caesars — managed to improve their profit positions, though Bally's still operated at a loss. Golden Nugget also reported red ink for the quarter. Market leaders Borgata, Hard Rock, and Ocean all watched their profits contract.
Who's Still Winning?
Borgata maintained its position as our most profitable casino resort, though its $39.7 million profit represented an 18% year-over-year decline. Hard Rock came in a distant second at $19.7 million, down 25%, while Ocean rounded out the top three with $18.7 million, a 17% drop.
There were some bright spots in the data. Hotel occupancy rates climbed from 62.9% in the first quarter of 2025 to 64.6% this year, suggesting more visitors are choosing to stay overnight in our resort city. The average nightly room rate also edged up slightly, from $159.13 to $161.03.
But these modest gains weren't nearly enough to offset the rising tide of operational expenses.
Looking Ahead: Challenges and Optimism
Our casino industry faces additional headwinds on the horizon. Three new casinos are slated to open in New York City in the coming years, potentially siphoning off customers who might otherwise make the trip to Atlantic City.
Still, Plousis struck an optimistic tone about our city's prospects. He pointed to the more than $1.3 billion casino operators have invested in their Atlantic City properties over the past five years to enhance gaming, dining, entertainment, and leisure experiences.
"During my recent off-season tours of each casino hotel, it was clear that notable improvements have continued, and a high level of commitment to the market has not wavered," Plousis declared. "Atlantic City is ready for an exciting summer season."
The second quarter started promisingly. April casino gaming revenue hit $235.6 million — a 12-year high for the month and 12% above April 2025. Gaming revenue showed positive growth in January (up 1.6%) and March (up 2.5%), with only a slight dip in February (down 0.3%).
However, this Memorial Day weekend may have dampened momentum. Rainy weather and elevated gas prices likely kept some visitors away during what's traditionally one of the busiest weekends of the year — a reminder that our casino industry's fortunes remain closely tied to factors beyond its control.
As we head into the crucial summer season, our nine casino resorts will need that "exciting" performance Plousis anticipates. With profit margins under pressure and competition intensifying, the stakes have never been higher for Atlantic City's signature industry.
