2025 Atlantic City Casino Profits Fall 3.9%

(AsiaGameHub) –   Atlantic City casinos avoided a revenue collapse in 2025, but the primary issue arose after the funds were collected. As costs continued to rise and margins narrowed, operating profit trended downward. This occurs just as the market prepares for stiffer competition from New York and renewed discussions about casino expansion within New Jersey.

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Good to Know

• In 2025, gross operating profit for Atlantic City casinos and two online-only operators decreased by 3.9% to $681.6 million.
• Net revenue remained flat, though fourth-quarter net revenue was the highest since 2018, according to James Plousis.
• New York is still pursuing three downstate casino licenses, which creates additional pressure for Atlantic City.

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Profit Declines Despite Stable Revenue

The most significant figure is profit, not revenue. The nine Atlantic City casinos and two online-only entities reported a gross operating profit of $681.6 million for 2025, a drop of 3.9%, even though annual net revenue remained largely steady. This represents the fifth consecutive year in which escalating expenses have squeezed the market.

James Plousis stated it clearly, noting that Atlantic City experienced “flat annual net revenue and lower gross operating profit during 2025, having encountered increased costs and expenses for a fifth consecutive year.” He also observed that the market finished on a stronger note, with fourth-quarter net revenue hitting its highest level since 2018.

Focusing strictly on the nine land-based casinos, profits still declined, though the drop was smaller. Their total gross operating profit reached $665.4 million, down 1.4%. This distinction is crucial because online expansion has helped sustain total revenue in New Jersey, even as land-based operators confront higher labor, energy, and product costs.

Results were mixed across properties. Borgata led the market with $237.4 million in gross operating profit, an increase of 13.8%. Ocean hit $112 million, up 10.6%, and Golden Nugget rose to $28.2 million, an increase of nearly 57%. In contrast, Hard Rock fell 8.6% to $123.8 million, Tropicana dropped 25% to $61.7 million, Harrah’s declined 12% to $56.5 million, and Caesars fell by over 40% to $34.1 million. 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.

Hotel performance offers some insight. Ocean achieved the highest average nightly room rate at $275.87, while Golden Nugget had the lowest at $112.65. Hard Rock recorded the highest occupancy at 83.7%, while Golden Nugget had the lowest at 51.8%. Throughout the city, the average room rate was $175.16 and occupancy was 71.2%, a slight decrease from the previous year.

Jane Bokunewicz remarked that operators have attempted to respond to pressure through capital upgrades, marketing, and promotions, but inflation has lessened the impact. Essentially, casinos are spending to maintain demand while trying to reduce expenses, a difficult balance to strike when external costs continue to increase.

This would be a difficult situation regardless, but the timing makes it worse. Atlantic City is facing the potential of three New York City casinos, and New Jersey is once again hearing discussions about casino gambling outside of Atlantic City. George Goldhoff stated that the market is dealing with I