Atlantic City casinos see drop in revenue and profits in Q1 as economic pressures mount

Atlantic City’s casino industry experienced a sharp decline in revenue and profits during the first quarter of 2025, according to figures released Thursday by the New Jersey Division of Gaming Enforcement (DGE). The nine casinos collectively generated $730.3 million in net revenue, down 5.1% from the same period in 2024.

The dip in revenue, which includes earnings from casino gaming, hotel stays, food and beverage sales, and digital operations such as iGaming and sports betting, contributed to a 15% fall in gross operating profit. The casinos reported nearly $132 million in profit for the quarter.

Hard Rock and Tropicana were the only two casinos to post higher profits year-over-year. Eight of the nine operators remained profitable overall, with Bally’s being the sole exception, reporting an operating loss of $6.6 million.

Gross operating profit, as defined by the DGE, reflects earnings before interest, taxes, depreciation, amortization, affiliate charges, and other miscellaneous items, and is considered a key measure of financial health in the industry.

James Plousis, Chair of the New Jersey Casino Control Commission, attributed the downturn to broader economic challenges. “Atlantic City’s first quarter net revenue declined in comparison to the same periods of the past two years, reflecting economic pressure that affects regional gaming and leisure tourism,” Plousis said. 

This marks the third consecutive year that Atlantic City’s casinos have reported a year-over-year profit decline in Q1. The previous year’s first quarter also showed a nearly 9% decrease in profits.

The start of the second quarter has not brought relief. April’s in-person casino play declined nearly 3%, while sports betting revenue dropped 15% compared to the same month last year.

Declining hotel occupancy has added to concerns. The nine casinos, which together have 15,424 rooms, reported an average occupancy rate of 62.9% in Q1, the lowest since 2014, apart from the pandemic-disrupted first quarter of 2021. The average nightly rate was $159, down 3% from Q1 2024.

Industry leaders reassure that Atlantic City is on the verge of revitalization. In a recent conversation with Casino.org, Resorts president and Casino Association of New Jersey head Mark Giannantonio described the city as undergoing a “renaissance.”

Plousis echoed that optimism, noting that casinos had used the winter season to refresh their offerings ahead of the summer season.