Although some believed the Boardwalk casinos would experience an uptick in 2022 just like New Jersey sports betting, it was quite the opposite as the nine gambling palaces reported a combined loss of 4.6% from the previous year.
Profits Eroded in 2022
A 4.6% annual loss is not the direction Atlantic City casinos was expecting but when the receipts were tallied, the combined profits in 2022 showed $731.2 million, down from 2021’s $766.8 million. The lingering effects of the global pandemic continue to cast a pall over the Atlantic City market.
Mark Giannantonio, president of Resorts Casino and the Casino Association of New Jersey, stated, “You have revenue that’s not growing fast enough, and couple that with expenses in some categories that are up 20 to 25% or more, and you can see how quickly this can erode profits.”
However, the dip in profits has not dampened Giannantonio’s spirits regarding the immediate future of the Atlantic City gaming industry. “We are confident that the Atlantic City market will continue to grow and thrive,” said Giannantonio. “We have a lot of exciting developments in the pipeline, and we are committed to providing our guests with the best possible experience.”
Borgata Still Reigns Despite Loss
The Hard Rock and Ocean Casino Resort were the only two casinos that showed a year-over-year increase in operating profits. The Hard Rock saw a 20% increase from 2021 to 2022 and revealed an operating profit of over $128 million while Ocean bumped up 5.5% and delivered $96.2 million in operating profit.
However, the Borgata still led the other eight on the big block with $140.2 million in operating profit but that was still a substantial 19.4% decrease from 2021. And while Bally’s was the only Atlantic City casino with a net loss of $1.8 million it was a far cry from the $13.1 million they lost in 2021.
As for the others, Tropicana was just shy of $110 million (-7.6%), Harrah’s earned $89.3 million (-10%), Caesars earned $60.4 million (-2.7%), Golden Nugget earned $30.6 million (-14.1%) and Resorts earned $21 million (-23.9%).
Union Boss Exiting
After negotiating one of the best contracts ever for the members of Local 54 of Unite Here, Bob McDevitt is leaving as one of the brashest and most successful union bosses in the gambling town’s history.
“We represent people who traditionally have not been what you would consider high-wage workers – housekeepers, bartenders, cocktail servers, people who clean public areas,” McDevitt said. “It’s one thing to work as a waiter over the summer while you’re in college; it’s quite another to try to support yourself and a family on that. That’s where we come in.”
The 60-year-old boss will resign on May 1st to take over as chairman of the Unite Here national pension fund.
“I’ve been focused on pension for my whole career, so it’s a natural progression for me,” said McDevitt. “There has only been one other chair, that’s John Wilhelm. I’m filling big shoes.”
Calculators
