With states like Pennsylvania, Delaware, and Maryland rolling back historically tough laws prohibiting casino gambling, the decline of Atlantic City looked like something that was only going to continue. In reality, however, we are seeing that the opposite is true. The 3rd quarter of 2017 proved to be yet another positive one for AC casinos, and did a good job of disproving the idea that internet gambling was going to ruin the casino industry.
Most people who are familiar with casinos look at Atlantic City and associate it with being on the brink of complete and total collapse. For a time, through the first parts of this decade, the casino town by the sea was struggling, and noticeably so. With casinos shutting their doors and crime rates rising, the idea of a vacation trip to Atlantic City did not have the appeal it once did.
But earlier this week, 3rd quarter earnings for AC casinos were posted, and the numbers did well to shock everyone. All casinos included, the 3rd quarter of 2017 saw earnings improve by more than 20% from this point last year. The city’s 7 gambling destinations posted gross operating profits that exceeded $250 million. For those unfamiliar with the casino industry, gross operating profit is earnings before any deductions, such as taxes and depreciation. It is the commonly accepted way by which the casino industry measures performance.
All but one of Atlantic City’s casinos posted year over year 3rd quarter earnings, but Tropicana far outpaced them all. As crazy as it sounds, Tropicana’s earnings were up by more than 65%, totaling a little more than $45 million. The Golden Nugget and Caesar’s also posted earnings increases, however they earned over 15% and over 10%, respectively. The only site to post a 3rd quarter, year over year loss was the Borgata, which was down by a measly half percent.
As you may or may not know, online casino gambling is now live in New Jersey, and that sector of the casino industry is mimicking the performance of its brick and mortar coutnerparts. Caesars Entertainment-NJ was up by more than 55% during the 3rd quarter, bringing in just shy of $4 million in total. Resorts Digital also posted healthy earnings.
While the 3rd quarter did emit some impressive financial performances on the Jersey Shore, the whole of this year has been great to Atlantic City. Since the beginning of 2017, Atlantic City casinos have seen their earnings grow by just shy of 20% from the previous year. With casino hotel room rates on the rise, occupancy rates are as well. It is tough to say whether this is going to truly result in the total revitalization of Atlantic City, but the past year and a half has been encouraging, to say the least. People had predicted that Atlantic City had no future, but it is clear to see that perhaps those projections were wrong. AC is still a premier gambling destination, and the financial earnings from the 3rd quarter help prove that.