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The virus is 80% behind the profit of Atlantic City Casino in 2020

ATLANTIC CA CITY, NEW YORK (AP) – A coronavirus outbreak last year saw more than 80% of profits in Atlantic City casinos, according to data released by the regulators of winning games in New Jersey on Friday.

But despite those disappointing numbers, seven of the nine casinos still managed to make a profit, no matter how small, in 2020.

The State Department of Gambling reported that the nine casinos together generated $ 117.5 million in gross operating profit in 2020. That was less than $ 594 million a year earlier, when the epidemic forced casinos to close for three-and-a-half months, restricting their operations. even after reopening.

Gross operating profit reflects earnings before interest, taxes, depreciation, and other expenses և This is a widely accepted measure of the Atlantic City casino industry’s profitability.

“Atlantic City և its casinos have had the most difficult year in their history,” said James Ames Plusis, chairman of the New Jersey Casino Management Committee. Even after reopening in July, casino revenues were limited by travel restrictions, amenities, and canceled entertainment.

“However, through responsible governance, casinos have proven that gambling can be played in person,” said Plusis. “When tourists return to the coast, they can be sure that Atlantic City is safe for the summer.”

Ocean Casino Resort won the largest operation with $ 21.8 million, up from $ 6.7 million in 2019. The owners announced this week that the Detroit Ilyich family, which owns the Little Caesars Pizza chain, baseball և hockey teams և Detroit Casino, is buying half of the Ocean Casino.

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

“Despite the extraordinary challenges of 2020, Ocean has shown continued growth, emerging as a leader in the gross gaming industry,” Ocean Terry CEO Terry Glebok said in a statement. “Thanks to the hard work of our team that preceded our temporary closure due to the global epidemic, the Ocean has had a successful year. “As restrictions are eased, we are opening up additional areas of our business, and I am optimistic that we will continue to see games grow in 2021.”

Tropicana earned $ 18.7 million, but it is more than 78% less than last year. Hard Rock earned $ 10.9 million, down nearly 72 percent, and Caesars – $ 10.4 million, down more than 84 percent.

Harrah’s earned $ 8.5 million, down more than 90%. Golden Nugget earned $ 7.2 million, almost 74% less, և Borgata recorded an annual operating profit of $ 650,000, 99.7% less than in 2019. It was the last casino in Atlantic City to reopen last year, a few weeks after the rest.

The resorts had $ 10.5 million in operating losses, while in 2019 they had a profit of $ 17.6 million. The resorts are in the process of renewing their contract with the Mohegan Tribe of Connecticut to manage the operations of Atlantic City casinos.

Bally’s had an operating loss of $ 10 million, compared to a profit of $ 27.5 million in 2019.

Resorts Digital alone had an operating profit of more than $ 21 million in 2019 among Internet users alone. For $ 8.5 million. Caesars Interactive Entertainment-NJ had a profit of almost $ 20 million, up more than 45% և Golden Nugget Online Gaming, which dropped last year, showed a profit of $ 18.6 million.

For the fourth quarter of 2020, the results of which were also published on Friday, Atlantic City casinos reported a collective gross operating profit of $ 57.8 million.

Ocean had the most expensive average price for a hotel room in 2020 – almost $ 202. The Borgata was a distant second – $ 160.

The lowest average room price in a resort was $ 101, followed by Hard Rock at $ 112.

Ocean also had the highest employment rate in 2020 at 84%. The city averaged 62% overall employment.


Follow Wayne Parry at http://twitter.com/WayneParryAC


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