US – Higher labour costs eat into Atlantic City’s casino profitBy Phil - 23 May 2023
Profit for Atlantic City’s nine casinos fell by almost 15 per cent in the first quarter of 2023 compared with the first quarter of 2022 due to spiralling labour costs as the industry looks to grow.
The Borgata, Hard Rock, and Tropicana casinos were the hardest hit, losing around 50 per cent of their profits. The New Jersey Division of Gaming Enforcement released figures showing an operating profit of $135.4m for the first quarter of 2023, a decline from $159m last year.
James Plousis, Chairman of the New Jersey Casino Control Commission, highlighted higher costs and higher wages as the reason for the fall.
“Compared to the first quarter last year, the casino hotels are employing more people and a progressive labor agreement was reached,” Mr. Plousis said. “These steps are emblematic of an industry that is preparing for growth and success.”
Bally’s, Harrah’s, Caesar’s and Ocean Resort were the success stories. Having reported a loss of $6.8m in the first quarter of last year, Bally’s reported a profit of $88,000 thsi first quarter. Ocean Casino Resort meanwhile saw its profit increase by 27.6 per cent, reaching $23.6m Harrah’s also saw a gain with its profit increasing by 21 per cent to $19.2m. Caesars’ profit increased by seven per cent, reaching $11.3m.
The remaining five casinos took the total profit down though. Resorts dropped from a $527,000 profit in 2022’s first quarter to a $284,000 loss in this year’s quarter. Borgata’s profit dropped by more than 50 per cent to $22.8m. Hard Rock’s profit fell by 17.5 per cent to $22.2m. Tropicana dropped 15.3 per cent to $16.7m whilst Golden Nugget fell from a profit of $5.6m to $4.8m.