Revenue Rises but Operating Profits Fall
The New Jersey Division of Gaming Enforcement published its Q4 and full year 2022 results, highlighting improvements in revenue for the state’s nine casinos during both periods. According to a report published on APnews, revenue rose by 1% in Q4 to $771.9m and 9.3% for the full year, reaching $3.3bn.
However, operating profits fell, decreasing by 31.6% in Q4 to $119.3m and 4.6% for the full year to $731.3m. Only four casinos reported higher operating profits in 2022 compared to 2019, the last full year before the pandemic.
Mark Giannantonio, President of Resorts Casino and the Casino Association of New Jersey, commented on the financial struggles faced by the New Jersey casinos last year, stating, “You have revenue that’s not growing fast enough, and couple that with expenses in some categories that are up 20 to 25% or more, and you can see how quickly this can erode profits.“
A Mixed Bag for Individual Land Based Casinos
Hard Rock, Ocean Resort, and Bally’s AC were the only casinos in New Jersey that saw their operating profits improve in 2022 compared to 2021. Hard Rock’s profits rose by 19.8% to $128m, while Ocean’s profits improved by 5.5% to $96.2m.
Resorts Casino suffered the most significant decrease in operating income, declining by 23.9% to $21m, followed by Borgata at 19.4% to $140.2m, and Harrah’s at 10.1% to $89.4m. Tropicana also fell by 7.6% to $109.7m, as well as Caesars by 2.7% to $60.4m, and Golden Nugget, which declined slightly to $30.7m.
Regarding internet operators, Caesars Interactive Entertainment NJ enjoyed a 97.7% increase in operating profits to $32.8m, and Resorts Digital grew by 2.8% to $15.4m. GNOG. This demonstrates the growing trends towards mobile and watches gaming.
When comparing 2019 figures, four casinos – Hard Rock, Ocean, Resorts, and Tropicana – earned more in 2022, while Harrah’s came close to breaking even.