Atlantic City casino operating profits double in first quarter
ATLANTIC CITY — Gross operating profits for Atlantic City’s casino industry more than doubled in the first quarter as the eight survivors benefited from the closings of four competitors last year.The key indicators show that the current operators continue to improve,” Levinson said. “Gaming revenue is up, total revenue is up, net revenue is up, gross operating profits are up, hotel occupancy rate is up and the average room rate is up.”
Hotel occupancy climbed nearly 3 percentage points in the first quarter, to 72.8 percent. The average room rate was $98.87, compared to $96.25 in the first quarter of 2014.The first quarter covers the winter months, normally a challenging time for casinos to turn a profit. Levinson noted that in a quarter when it is not uncommon for casinos to lose money, six properties generated gross operating profits. Resorts Casino Hotel and Trump Taj Mahal Casino Resort posted operating losses for the quarter.
When compared to how well they did last year, the eight surviving casinos saw their operating profits increase 26 percent, from $64.5 million to $81.3 million.
Golden Nugget turned things around in the first quarter this year, swinging from last year’s $1.8 million loss to a $4.1 million operating profit. Bally’s also climbed out of a money-losing hole last year to post a $4.5 million operating profit for the first quarter this year.
Perennial powerhouse Borgata Hotel Casino & Spa continues to lead the market in gross operating profits. Borgata’s $38.5 million operating profit in the first quarter represented an 83 percent increase compared to last year.
