Atlantic City Casinos Squeezed by High Operating Costs as Profits Shrink 9.3%

Atlantic City casinos grew revenue in the second quarter, but soaring labor, goods, and service costs weighed heavily on their bottom lines. The Steel Pier Ferris wheel. Atlantic City casinos reported reduced operating profits in the second quarter of 2026. (Image: Shutterstock) The New Jersey Division of Gaming Enforcement (DGE) reports that the nine casinos generated net revenue of $836.5 million for the quarter ending June 30, 2026. While that marked a 1.3% year-over-year increase in casino revenue and sales from hotel rooms, food and beverage, entertainment, and other resort amenities, gross operating profits were 9.3% lower at $164.5 million. The casino hotels encountered their highest second quarter costs and expenses in nine years, significantly constraining reported gross operating profits,” James Plousis, chair of the New Jersey Casino Control Commission, said in remarks provided to Casino.org. All but two casinos, Caesars and Ocean, reported lower profits, though all nine remained profitable. Borgata remained the market leader, with a quarterly profit of $60.1 million, down 4.7%. (Image: NJ Division of Gaming Enforcement) Difficult Trend Atlantic City casino profits are going the wrong way. Through six months, the nine resorts reported an operating profit of $265.3 million, down 14.9% from 2025. Atlantic City profits in 2024 through the first six months were $310.4 million, and in 2023, profits totaled $328.3 million. Despite higher revenues–the resorts took more than $1.55 billion from guests during the six months this year, $32 million more than they did in 2023 when profits were much higher–profits are continuing to shrink. Resorts saw the largest profit drop, though the casino told the Press of Atlantic City that was due to a deferred revenue payment to PokerStars, a former online gaming partner. Along with higher overhead, iGaming and online sports betting revenue has continually accounted for a larger share of the casino revenue reported on each property’s balance sheet. Casinos report their share of the online betting revenue on their income statement. While that props up net gaming revenue, online gamblers don’t spend money on rooms, food and beverage, or entertainment, and are therefore not as profitable as legacy gamblers. Atlantic City’s casinos managed to sell more hotel rooms during the first half of the year, with the collective occupancy rate up from 67.8% to 69%. Rates, however, remained flat from a year ago at $167. Atlantic City Remains Profitable Market There are many concerns facing Atlantic City’s future, but, at least for now, the nine casinos all remain profitable. “All casino hotels were profitable in the second quarter, with two reporting higher profits compared to the same period last year. Stable net revenue and hotel occupancy demonstrate the casinos continue to compete well for gaming and leisure tourists,” Plousis said. The months and years ahead will be critical for Atlantic City, as three full-scale New York City casinos prepare to ramp up operations. The post Atlantic City Casinos Squeezed by High Operating Costs as Profits Shrink 9.3% appeared first on Casino.org.