(ConservativeSense.com) – Profits in Atlantic City casinos are down by 20% since the summer of 2022. The New Jersey Division of Gaming Enforcement released figures on August 22 showing a collective decline to $146 million, which is also lower than numbers from 2019, when profits were $159 million.
The figures represent the profit made by all major casinos combined, minus taxes, depreciation, and expenses.
Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, said part of the reason for the fall in profits is a pay increase secured by casino workers last year. “Given the increases in labor expenses that did not exist prior to July 2022 and increases in operational expenses overall, this decline is not unexpected,” she said.
While collective profit is down, not all of the city’s major casinos saw a reduction; some demonstrated an income upswing. Caesars Atlantic City was up 8.3% compared to the second quarter of 2022, and Bally’s Hotel Casino Atlantic City turned a profit of $1.8, which is a dramatic transformation of its fortunes compared to last year when it endured a $3.7 million loss.
Among those to register profit falls were Hard Rock Hotel and Casino, down by 20%, and Tropicana Hotel and Casino, which dropped by 18%. However, both casinos still turned a profit of $30.4 million and $25 million, respectively.
Over in Nevada, analysts predict a similar falloff for casinos on the Las Vegas strip. Colin Mansfield, an analyst for Fitch Ratings Service, said he believes 2023 will see a drop of 10% in collective profits at the world-famous gambling hub. This is despite respectable numbers, in terms of visitors and profits, recorded on the strip in 2022.
The Las Vegas Strip attracted 38 million visitors in 2022, 20% higher than 2021 but lower than the pre-pandemic 42.5 million. Concerning revenue, figures released in December 2022 showed income for the year was $14.8 billion, more than 10% higher than the year before.
Copyright 2023, ConservativeSense.com
