Statewide Revenue Down 5.1% as Market Faces Continued Operational Challenges
New Jersey’s casino sector has begun 2025 on shaky ground, with first-quarter revenue falling 5.1% year-on-year to $730.3 million, according to the latest figures from the Division of Gaming Enforcement (DGE). The drop follows a sluggish end to 2024, when Q4 revenues dipped 1.7%, highlighting a sustained period of underperformance in the Atlantic City gaming market.
The decline extended beyond top-line figures, with gross operating profit across the sector tumbling 15.1% to $132 million. The results underscore mounting financial pressure on operators, exacerbated by fluctuating tourism trends and rising operational costs.
Bright Spots: Hard Rock and Tropicana Buck the Trend
Not all casinos fared poorly. Hard Rock Hotel & Casino Atlantic City defied the general downturn, posting a modest 1.2% increase in revenue to $135 million. Meanwhile, Tropicana delivered the strongest profit performance, growing its operating profit by 7.1% to $13.4 million.
Resorts Casino Hotel also moved into the black in Q1 2025, reversing losses from the same period last year. However, comparisons are complicated by its September 2024 integration of Resorts Digital, which altered its revenue base.
Sharp Declines for Caesars and Borgata
Other operators saw steep drops. Caesars recorded a 15.9% revenue decline and an alarming 66.5% drop in operating profit. Its digital arm, Caesars Interactive Entertainment NJ (CIENJ), was hit even harder, with revenue falling 31.3% year-on-year.
Borgata, Atlantic City’s market leader, maintained the top spot with $174.2 million in revenue, though that was still 2.7% lower than Q1 2024. The property also suffered a 6.8% decrease in operating profit.
Hotel Occupancy and ADR Reveal Consumer Shifts
Hotel metrics also suggest softer demand. Occupancy rates across casino hotels fell to 62.9%, down from 64.8% in Q1 last year. The average daily rate (ADR) per occupied room rose slightly to $159.13, with Ocean Casino Resort commanding the highest at $229.66.
These declines come despite early-year optimism sparked by a 5.1% revenue increase in February, but that momentum failed to sustain through the quarter.
Long-Term Outlook: Atlantic City’s Uneven Recovery Continues
The Q1 results reaffirm that Atlantic City’s recovery remains uneven, impacted by changing consumer behaviors, increased competition from neighboring states, and persistent economic pressures. The DGE previously reported a 0.5% full-year decline in 2024 casino revenue to $3.31 billion, coupled with a 9.2% drop in operating profit, setting the stage for a challenging 2025.
As operators adapt with new strategies, property upgrades, and digital integrations, all eyes will be on Q2 figures to see if the city’s gaming market can regain stability amid broader industry headwinds.
