New Jersey casinos saw their operating profit fall in 2022 as properties in the Garden State are continuing to struggle and failing to return to pre-pandemic levels.
Publishing its fourth quarter and full year 2022 results, the New Jersey Division of Gaming Enforcement declared improvements in revenue for the state’s nine casinos during both measuring periods, rising by 1 per cent in the quarter to $771.9m (2021: $764.1m) and by 9.3 per cent for the full year to $3.3bn (2021: $3.02bn).
However, operating profit for the casinos during both measuring periods decreased, falling by 31.6 per cent during Q4 to $119.3m (2021: $174.5m) and by 4.6 per cent for the full year to $731.3m (2021: $766.9m).
Only four casinos had an operating profit higher during 2022 than what it was in 2019, the last full year before the pandemic.
Speaking to the Associated Press, Mark Giannantonio, President of Resorts Casino and the Casino Association of New Jersey, commented that New Jersey casinos’ finances last year were impacted by inflationary pressures.
“You have revenue that’s not growing fast enough, and couple that with expenses in some categories that are up 20 to 25% or more, and you can see how quickly this can erode profits,” noted Giannantonio.
Hard Rock, Ocean Resort and Bally’s AC were the only casinos in New Jersey that saw their operating profits improve in 2022 compared to 2021. Hard Rock rose by 19.8 per cent to $128m (2021: $106.8m) while Ocean improved by 5.5 per cent to $96.2m (2021: $91.3m).
Although Bally’s had the biggest increase in operating cost at 85.7 per cent, it still came in at a loss of $1.9m (2021: $13.2m).
Resorts Casino saw the biggest decrease in operating income, declining by 23.9 per cent to $21m (2021: $27.6m), followed by Borgata which fell by 19.4 per cent to $140.2m (2021: $174.1m) and Harrah’s which dropped by 10.1 per cent to $89.4m (2021: $99.5m).
Tropicana also tumbled by 7.6 per cent to $109.7m (2021: $118.7m), as well as Caesars by 2.7 per cent to $60.4m (2021: $62.1m) and Golden Nugget declined slightly to $30.7m (2021: $35.6m).
Regarding internet operators, Caesars Interactive Entertainment NJ saw its operating profits rise by 97.7 per cent to $32.8m (2021: $16.6m), Resorts Digital grew by 2.8 per cent to $15.4m (2021: $15m) while GNOG surrendered its online casino licence in May 2022.
Compared to 2019 figures, four casinos – Hard Rock, Ocean, Resorts and Tropicana – earned more in 2022, while Harrah’s came close to breaking even.
