Author: Joe Kizlauskas
Last Updated: 12th April 2021
Last year, earnings at Atlantic City’s casinos fell by more than 80 percent to US$117.5 million due to the closing of its casinos for three and a half months, though seven of the nine casinos managed to stay out of the red.
The Division of Gaming Enforcement in New Jersey stated: “Based upon filings made with the Division of Gaming Enforcement (Division), the casino licensees reported 4th quarter 2020 Net Revenue of $538.1m reflecting a 25.9 percent decrease and Gross Operating Profit decreased 53.1 percent. For the 12months of 2020, Net Revenue was $1.9bn and the Gross Operating Profit was $117.5m.
“In light of the casino closures during the entire 2nd quarter and operating restrictions in the 3rd and 4th quarters, the Net Revenue and Gross Operating Profit for the year-to-date period are not comparable to 2019.
“The occupancy rate in the industry’s casino hotels for the three months ended December 2020 was 46.3 percent and the occupancy rate for the 12 months ended December 2020 was 61.7 percent. Due to COVID-19 pandemic, the casino hotels were closed on March 16, 2020 and began to reopen on July 2, 2020. The occupancy rates exclude the duration of the shutdown period.”
Most challenging year in history
The Chair of the New Jersey Casino Control Commission, James Plousis, stated: “Atlantic City and its casinos endured their most challenging year in history. Yet, through responsible management, the casinos proved that in-person gaming could happen safely. As tourists return to the shore, they can have every confidence Atlantic City is safe for the summer.”
Ocean was the only gaming floor in New Jersey to see an increase in earnings over the course of the year. It has had the highest occupancy rate of 84 percent in 2020.
Ocean’s CEO, Terry Glebocki, added: “Despite 2020’s extraordinary challenges, Ocean showed continued growth, emerging as an industry leader in gross gaming revenue. Thanks to our team’s hard work and determination in the months before and after our temporary closure due to the global pandemic, Ocean had a successful year. As restrictions ease and we reopen additional areas of our business, I’m optimistic we’ll continue to see gaming growth throughout 2021.”
The Tropicana came in first with a profit of $18.7 million, a 78 percent drop in earnings. Hard Rock made $10.9 million, a 72 percent decrease. Caesars had a loss of $10.4 million, a decrease of 84 percent. Harrah’s lost 90 percent of its money, netting $8.5 million in profit. Golden Nugget’s earnings fell 74 percent to $7.2 million. The Borgata’s earnings for the year was $650,000, down 99.7 percent from the previous year. From a profit of $17.6 million in 2019, Resorts posted an operating loss of $10.5 million. Bally’s made a $10 million net loss, compared to a $27.5 million profit the previous year.