Atlantic City operating profits increase 40 percent

Apr 8, 2016 9:56 AM

Atlantic City’s eight surviving casinos saw their gross operating profit increase by more than 40 percent last year, according to figures released by the Division of Gaming Enforcement.

The news prompted Casino Control Commission Chairman Matt Levinson to declare that the casino industry is “alive and well."

The casinos posted a collective operating profit of over $547 million in 2015, with seven of the eight posting increases for the year. Only the Tropicana showed a decline. It was down about 22 percent to  $46.4 million.

But the improvement may be short-lived: New Jersey residents will vote in November on whether to authorize two new casinos in the northern part of the state near New York City. If built, those casinos are widely expected to further damage the Atlantic City market, with many analysts expecting the closure of two or more additional casinos in Atlantic City.

For now, however, the news is good for a change. Resorts led the way with a whopping 525 percent increase in profits, to $15.6 million. The Golden Nugget was up more than 396 percent to $22.6 million.

Phil Hevener has been writing about the Nevada gaming business for more than 30 years. Email: [email protected].