Atlantic City's casino industry is feeling the pinch. Despite maintaining steady revenue, our city's nine casinos and two online-only operators saw gross operating profit drop 3.9% to $681.6 million in 2025, according to a new report from the New Jersey Division of Gaming Enforcement. The decline marks the fifth consecutive year of increased costs and expenses for the industry that anchors our regional economy.
"Atlantic City reported flat annual net revenue and lower gross operating profit during 2025, having encountered increased costs and expenses for a fifth consecutive year," said James Plousis, chairman of the New Jersey Casino Control Commission. He noted that while the fourth quarter showed promise—posting the highest net revenue since 2018—the industry continues to face headwinds from rising labor, energy, and goods costs.
Winners and Losers Among Local Properties
The financial picture varied dramatically across our boardwalk. Borgata Hotel Casino & Spa led the pack with $237.4 million in gross operating profit, up an impressive 13.8% year over year. Ocean Casino Resort also posted strong gains, climbing 10.6% to $112 million, while Golden Nugget Atlantic City surged nearly 57% to $28.2 million.
However, several properties struggled. Bally's was the only casino to report an operating loss, shifting from a $2.5 million profit in 2024 to a $2.8 million loss in 2025. Caesars Atlantic City saw profits plummet more than 40% to $34.1 million, while Tropicana Atlantic City dropped 25% to $61.7 million.
Hard Rock Hotel & Casino Atlantic City reported $123.8 million in gross operating profit, down 8.6%, while Harrah's Resort Atlantic City posted $56.5 million, down 12%. Resorts Casino Hotel recorded $14.2 million in profit, though year-over-year comparisons are affected by a reporting change after Resorts Digital surrendered its casino license in September 2024.
Room Rates Rise, Occupancy Softens
The hospitality side of our casino industry showed mixed signals. Ocean Casino Resort commanded the highest average nightly room rate at $275.87, while Golden Nugget reported the lowest at $112.65. The citywide average stood at $175.16.
Occupancy rates tell a concerning story. Hard Rock posted the highest occupancy at 83.7%, while Golden Nugget recorded the lowest at 51.8%. Overall occupancy across casino hotels was 71.2%, down slightly from the prior year—a trend that industry leaders say reflects ongoing pressures on visitation.
New York Competition Looms Large
These financial challenges come as our city prepares to face unprecedented competition. Three new casinos are planned for New York City, including projects linked to Bally's and Hard Rock. New Jersey Gov. Mikie Sherrill has acknowledged the potential impact, while state lawmakers are pursuing another effort to ask voters whether casino gaming should be allowed outside Atlantic City.
"The earnings figures show a mixed and increasingly challenging environment for New Jersey's casino industry," said George Goldhoff, president of the Casino Association of New Jersey and of Hard Rock Hotel & Casino Atlantic City. "Atlantic City is facing growing regional competition, broader economic headwinds, and the prospect of additional gaming expansion in the New York City market."
Industry Calls for Action
Jane Bokunewicz, director of Stockton University's Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism, explained that our casino operators have been investing heavily in capital improvements and marketing to distinguish themselves from competitors. "The return on these investments has been slow in its realization, partly due to external variables, like inflation, that on paper seem to have dulled the effects of these revenue-generating initiatives," she said.
Goldhoff emphasized the urgency of the situation, calling for immediate action from state and local stakeholders. "These figures underscore the need for operational efficiency and bolder strategies to reverse declining occupancy trends," he said. "They also highlight the urgency with which the State of New Jersey, the City of Atlantic City, the Casino Reinvestment Development Authority and all stakeholders must take immediate, comprehensive action to make the city more attractive to visitors this summer."
Despite the challenges, Goldhoff noted that operators have invested hundreds of millions of dollars into their properties in recent years "to continue delivering high-quality experiences and supporting jobs that drive economic activity across southern New Jersey." For our community, those jobs and that economic activity remain vital as we navigate an increasingly competitive regional gaming landscape.
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South Jersey NewsBeat
South Jersey NewsBeat is a contributor to LocalBeat, covering local news and community stories.
