Atlantic City Casinos Post Revenue Gains but See Profits Fall 9.3 Percent on Record Costs
TL;DR — Atlantic City casinos generated net revenue of $836.5 million for the quarter ending June 30, 2026, a 1.3% year-over-year increase. Gross operating profits were 9.3% lower at $164.5 million as the casino hotels encountered their highest second quarter costs and expenses in nine years. All nine casinos remained profitable.
SCCG Take — Margin compression from labor and online mix will intensify as New York casinos launch, requiring tighter cost controls to protect profitability.
Atlantic City casinos generated $836.5 million in net revenue for the second quarter of 2026. That figure reflects a 1.3 percent increase from the prior year. Gross operating profits contracted 9.3 percent to $164.5 million as labor, goods, and service costs reached their highest second-quarter level in nine years.
“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 nine casinos stayed profitable. Caesars and Ocean were the only two to report higher profits than the year-earlier period. Borgata led the market with $60.1 million in profit, down 4.7 percent.
Multi-Year Profit Compression
First-half operating profit for the nine resorts totaled $265.3 million, a 14.9 percent decline from 2025. The drop continues a pattern: first-half profits stood at $310.4 million in 2024 and $328.3 million in 2023. Revenue exceeded $1.55 billion in the first six months of 2026, $32 million ahead of 2023 levels.
Resorts recorded the steepest profit decline after a deferred revenue payment to PokerStars. The growing share of iGaming and online sports betting revenue lifts reported gaming totals but delivers lower margins because those customers spend less on rooms, food and beverage, and entertainment. Hotel occupancy rose to 69 percent from 67.8 percent, while average daily rates remained flat at $167.
Cost Trajectory and Market Pressures
According to reporting by Casino.org, stable net revenue and hotel occupancy indicate the casinos continue to compete effectively for gaming and leisure tourists. Plousis added: “All casino hotels were profitable in the second quarter, with two reporting higher profits compared to the same period last year.” The months ahead will test that resilience as three full-scale New York City casinos prepare to ramp up operations.
Reporting: Casino.org News
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Revenue growth means nothing if costs eat your margin — and New York will only turn up the heat.
We've watched Atlantic City fight through every regional headwind for three decades. Rising costs and channel mix are squeezing profit even as top-line holds — that's the warning light before New York casinos pull high-value customers north. Operators need cost discipline and better yield management now, not after the damage shows up.
- Q2 net revenue $836.5M, up 1.3%; gross profit $164.5M, down 9.3%
- First-half profit fell 14.9% to $265.3M despite stable occupancy and room rates
- iGaming and sports betting lift revenue but deliver lower on-property margins
SCCG angle: SCCG works with procurement, labor analytics, and revenue-management partners who help casinos control the cost side when top-line growth stalls. We connect operators to vendors who've solved margin issues in competitive corridors — and to intelligence on what New York openings will actually do to customer flow and ADR.
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