Atlantic City Casinos Report Q2 Revenue Increase of 0.9 Percent Offset by 10.1 Percent Profit Drop on Record Costs
TL;DR — Atlantic City casinos posted $844.5 million Q2 net revenue, up 0.9%, but gross operating profit dropped 10.1% to $164.9 million on nine-year high costs. Borgata led at $60.1 million profit. First-half margins narrowed to 17.2% as expenses outpaced modest revenue gains.
SCCG Take — Persistent cost growth in labor and operations is compressing Atlantic City margins in a mature market. Operators must contain expenses ahead of added New York competition and potential ownership changes.
Atlantic City’s nine casinos generated $844.5 million in net revenue in the second quarter of 2026. That figure marked a 0.9 percent increase from the same period in 2025. Gross operating profit fell 10.1 percent to $164.9 million as operating expenses reached their highest second-quarter level in nine years.
The pattern held through the first half of 2026. Net revenue edged up 0.2 percent to $1.57 billion while gross operating profit declined 15.5 percent to $269.6 million. The industry profit margin narrowed from 20.4 percent to 17.2 percent. Expenses tied to labor, goods, services, internet operations, and sports betting drove the compression.
Property Performance Shows Clear Leaders
Borgata Hotel Casino & Spa remained the most profitable operator with $60.1 million in gross operating profit, down 4.7 percent, while its revenue rose 3.6 percent to $218.4 million. Ocean Casino Resort recorded the largest profit gain among major properties, up 12.2 percent to $30.1 million on revenue of $142 million that climbed 9.2 percent.
Hard Rock Hotel & Casino Atlantic City posted $29.1 million in profit, down 10.5 percent, with revenue at $148.4 million. Caesars Atlantic City increased profit 2.9 percent to approximately $13 million. Tropicana Atlantic City, Harrah’s Atlantic City, and Bally’s Atlantic City each reported profit declines of 8.7 percent, 6.8 percent, and 8.8 percent respectively. Golden Nugget Atlantic City profit fell 43 percent to $2.9 million. Resorts Casino Hotel saw the steepest drop, down 95.2 percent to $473,000 after a prior-year deferred revenue payment from PokerStars did not repeat.
Cost Trends and Forward Indicators
James Plousis, chair of the New Jersey Casino Control Commission, stated that casino hotels faced their highest second-quarter costs and expenses in nine years, significantly constraining reported gross operating profits. Brian Tyrrell, director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism, observed a clear trend of declining gross operating profit despite steady net earnings in this mature market. Tyrrell cited higher costs for goods, labor, internet operations, and sports betting as key factors. Revenue at Atlantic City casinos does not always translate to profitability.
Hotel occupancy held stable at 73.2 percent for the quarter, up 0.6 percentage points, with an average daily rate of $171.71. First-half occupancy rose to 69 percent from 67.8 percent. The market faces pending competition from planned New York City casinos and potential ownership consolidation, including a possible acquisition that could place four of the nine casinos under common control.
These results, as reported by World Casino News, illustrate the persistent gap between top-line stability and bottom-line erosion in Atlantic City.
Reporting: World Casino News
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Revenue growth means nothing when costs grow faster — Atlantic City's margin compression is a clear warning shot for mature markets.
We've been tracking Atlantic City since the brick-and-mortar days, and this is a margin crisis disguised as stability. Flat revenue, soaring labor and ops costs, New York looming — operators need cost discipline and efficiency plays now, or they'll watch profits evaporate even as the top line holds. Mature markets don't forgive bloat.
- Q2 net revenue $844.5M (+0.9%), but gross profit fell 10.1% to $164.9M on record costs
- First-half margin compressed to 17.2% from 20.4% as expenses outpaced revenue gains
- Borgata led at $60.1M profit; Ocean up 12.2%, but Golden Nugget and Resorts plunged
SCCG angle: SCCG has deep Atlantic City roots and national operator relationships. We're connecting properties to operational efficiency partners — tech, workforce optimization, smarter promotional spend — and advising on defensive positioning as New York competition arrives. Margin defense starts with the right partners and hard decisions today.
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