Virus knocks 80% off Atlantic City casino earnings in 2020

ATLANTIC CITY, N.J. (AP) — The coronavirus outbreak sent earnings plunging at Atlantic City’s gambling enterprises by significantly more than 80% a year ago, in accordance with numbers released Friday by nj-new jersey gambling regulators.

But despite those dismal figures, seven for the nine gambling enterprises nevertheless was able to eke a profit out, no matter how small, in 2020.

The state Division of Gaming Enforcement reported the nine casinos collectively posted $117.5 million in gross operating profits in 2020. That was down from nearly $594 million a earlier, before the pandemic forced casinos to close for 3 1/2 months, and limited their operations even after reopening.

Gross year running revenue reflects profits before interest, fees, depreciation along with other costs, and it is a widely accepted way of measuring profitability into the Atlantic City casino industry.

“Atlantic City as well as its gambling enterprises endured their many year that is challenging history,” said James Plousis, chair of the New Jersey Casino Control Commission. Even after being allowed to reopen in July, the casinos’ earnings were limited by travel restrictions, limited amenities, and canceled entertainment, he added.

“Yet, The casinos proved that in-person gaming could happen safely,” Plousis said through responsible management. “As tourists go back to the coast, they could have every self-confidence Atlantic City is safe for summer time.”

The Ocean Casino Resort posted the operating profit that is largest at $21.8 million, up from $6.7 million in 2019. Its owners announced this week that the Ilitch family of Detroit, which owns the Little Caesars pizza chain, pro baseball and hockey teams and a Detroit casino, is buying half of the Ocean casino.

Ocean was the only Atlantic City casino to increase its profits during the year.

“Despite that is pandemic 2020’s extraordinary challenges, Ocean showed growth that is continued emerging as an industry leader in gross gaming revenue,” Terry Glebocki, Ocean’s CEO, said in a statement. “Thanks to our team’s hard work and determination in the months before and after our temporary closure due to the global pandemic, Ocean had a year that is successful. As limitations simplicity and now we reopen extra aspects of our company, I’m we’ll that is optimistic to see gaming growth throughout 2021.”

The Tropicana earned $18.7 million, but that was down more than 78% from a earlier year. Tough Rock received $10.9 million, down almost 72%, and Caesars received $10.4 million, down more than 84%.

Harrah’s received $8.5 million, down more than 90%; Golden Nugget received $7.2 million, down almost 74%, as well as the Borgata posted an operating revenue of simply $650,000 for the down 99.7% from 2019 year. It was the last Atlantic City casino to reopen year that is last many weeks following the rest.

Resorts had an operating loss in $10.5 million, when compared with a revenue of $17.6 million in 2019. Resorts is within the procedure of expanding the Mohegan tribe to its management agreement in Connecticut to handle its Atlantic City casino operations.

Bally’s had a $10 million running loss, when compared with a $27.5 million revenue in 2019.

Among internet-only entities, Resorts Digital had a working revenue of over $21 million, up from $8.5 million in 2019. Caesars Interactive Entertainment-NJ had a revenue of almost $20 million, up more than 45%, and Golden Nugget on line Gaming, that has been spun down year that is last showed an $18.6 million profit.

For the fourth quarter of 2020, whose results also were released Friday, Atlantic City’s casinos reported a collective gross operating profit of $57.8 million, down over 53% from 2019.

Ocean also had the most expensive average hotel room rate in 2020 at nearly $202. The Borgata was a distant second at $160.

Resorts had the average room rate that is lowest at $101, followed closely by complex Rock at $112.

Ocean additionally had the greatest occupancy price in 2020 at 84%. The town all together averaged almost 62per cent occupancy.

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