The New Jersey Division of Gaming Enforcement has published data about the local casinos’ performance in Q4 2023, reporting a decrease in gross operating profit despite an increase in net revenue.
The report highlights Q4 net revenue of $781.9 million, reflecting a 1.3% increase year-on-year. As mentioned, gross operating profit declined by 3.6% to $148.5 million.
Additionally, the Division of Gaming Enforcement published data about its licensees’ full-year performance. According to the authority, net revenue reached $3.33 billion for the calendar year, representing an increase of 0.8% year-on-year. In the meantime, licensed casino companies in New Jersey reported FY 2023 gross operating profit of $780.7 million, a 4.1% decrease year-on-year.
The division also published hotel occupancy figures for the period, saying that casino hotels in the state reported a Q4 occupancy rate of 66.5%. This figure marks a slight 0.7% increase compared to the prior year period. The occupancy rate for the twelve months ended December 2023, on the other hand, reached 73%, which demonstrates a decline of 0.4%.
Most Hotels Experienced a Decline
The most profitable casino resort in 2023 was the Borgata with Q4 net revenue of $190.4 million and gross operating profit of $47.9 million. The property’s FY 2023 results included net revenue of $785.6 million and gross operating profit of $226.1 million.
Next up was Hard Rock with Q4 net revenue of $140.3 million and gross operating profit of $28.5 million. Its FY net revenue stood at $572.7 million, resulting in a gross operating profit of $125.5 million
Rounding up the top three, Ocean Resort posted Q4 net revenue of $119.8 million and gross operating profit of $26.6 million. The venue was one of the only three licensees to report an increase in gross profit for 2023, with net revenue of $491.8 million (+16.3%) and gross operating profit of $117.2 million (+21.8%).
Bally’s AC was notably the biggest winner in 2023 as it was able to greatly bolster its profitability from a gross operating loss of $1.8 million in 2022 to a profit of $11.1 million in FY 2023. Resorts Casino, on the other hand, saw its gross operating profit plummet from $21 million in 2022 to $9.5 million in 2023.
Here’s how New Jersey’s other licensees fared in terms of FY 2023 gross operating profit:
- Caesars: $51.7 million
- Golden Nugget: $29.8 million
- Harrah’s: $80.6 million
- Tropicana: $93 million
- CIENJ: $23.6 million
- Resorts Digital: $12.2 million
In other news, Atlantic City’s casino workers continue to push for a ban on smoking in the local casinos.