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Rising operating costs pushed Atlantic City casino profits lower in 2025, with gross operating profit falling 3.9% to $681.6 million despite steady net revenue. The results are seen as a worrisome development as Atlantic City prepares to fight off new casinos in New York City and a renewed effort to allow casinos in other parts of New Jersey.
The decline in the operating profits for the city’s nine casinos and two online-only operators follows continued increases in expenses across labor, energy, and goods, according to the New Jersey Division of Gaming Enforcement‘s report.
“Atlantic City reported flat annual net revenue and lower gross operating profit during 2025, having encountered increased costs and expenses for a fifth consecutive year,” said James Plousis, chairman of the New Jersey Casino Control Commission.
“While pressure felt by the casino industry has been in line with businesses at large, Atlantic City finished the year on a positive note — fourth quarter net revenue was the highest recorded since 2018 — and it is competing well for regional gaming and leisure tourists.”
Land-based results show a narrow decline
Excluding the two internet entities—Caesars Interactive Entertainment and Resorts Digital—the nine casinos posted $665.4 million in gross operating profit, down 1.4% for the year. Gross operating profit measures earnings before interest, taxes, depreciation, amortization, affiliate charges, and other expenses, and is widely used to assess profitability in the Atlantic City market.
“Atlantic City’s casino operators have been responding to competitive pressures in a variety of ways,” said Jane Bokunewicz, director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism. “These efforts include capital improvements and investments in marketing and promotions to distinguish themselves from competitors and stimulate consumer interest and patronage.”
“The return on these investments has been slow in its realization, partly due to external variables, like inflation, that on paper seem to have dulled the effects of these revenue-generating initiatives,” she added. “Properties have also tried to optimize (gross operating profit) by taking a careful look at their expenses. However, a lot of operational expenses, such as wages, energy prices, and the cost of goods sold, have been impacted by external factors.”
Property-level results vary across operators
Bally’s was the only casino to report an operating loss, shifting from a $2.5 million profit in 2024 to a $2.8 million loss in 2025.
Borgata Hotel Casino & Spa recorded the highest gross operating profit at $237.4 million, up 13.8% year over year. Hard Rock Hotel & Casino Atlantic City reported $123.8 million, down 8.6%, while Ocean Casino Resort posted $112 million, up 10.6%.
Tropicana Atlantic City reported $61.7 million, down 25%. Harrah’s Resort Atlantic City posted $56.5 million, down 12%. Caesars Atlantic City recorded $34.1 million, down more than 40%, while Golden Nugget Atlantic City reported $28.2 million, up nearly 57%.
Resorts Casino Hotel posted $14.2 million in profit. Year-over-year comparison is affected by a reporting change after Resorts Digital surrendered its casino license in September 2024 and began reporting under Resorts’ license.
Ocean Casino Resort recorded the highest average nightly room rate at $275.87. Golden Nugget reported the lowest at $112.65. The citywide average room rate was $175.16.
Hard Rock posted the highest occupancy rate at 83.7%, while Golden Nugget recorded the lowest at 51.8%. The overall occupancy rate across casino hotels was 71.2%, down less than 1% from the prior year. Room rate figures include the retail value of complimentary rooms.
New competition on the horizon
The profit decline comes ahead of new casino development in New York City, where three properties are planned, including projects linked to Bally’s and Hard Rock.
New Jersey Gov. Mikie Sherrill has acknowledged the potential impact of new competition. At the same time, lawmakers are pursuing another effort to ask voters whether casino gaming should be allowed outside Atlantic City.
George Goldhoff, president of the Casino Association of New Jersey and of Hard Rock Hotel & Casino Atlantic City, said: “The earnings figures show a mixed and increasingly challenging environment for New Jersey’s casino industry. Hotel occupancy continued to soften, reflecting ongoing pressures on visitation. Atlantic City is facing growing regional competition, broader economic headwinds, and the prospect of additional gaming expansion in the New York City market.“
“While the industry demonstrates resilience, these figures underscore the need for operational efficiency and bolder strategies to reverse declining occupancy trends,” he added. “They also highlight the urgency with which the State of New Jersey, the City of Atlantic City, the Casino Reinvestment Development Authority and all stakeholders must take immediate, comprehensive action to make the city more attractive to visitors this summer.”
He added that operators have invested hundreds of millions of dollars into their properties in recent years “to continue delivering high-quality experiences and supporting jobs that drive economic activity across southern New Jersey.”