New Jersey casino sector slips in Q1 with $132M drop in profits

New Jersey’s casino sector is showing signs of strain following the release of Q1 2025 figures, revealing venues’ revenues falling 5.1% year-on-year (YoY) to $730.3 million.

According to the New Jersey Division of Gaming Enforcement’s first quarter reporting, the decline translated into a staggering 15.1% plunge in gross operating profit, equating to over $132 million.

Worryingly, Atlantic City’s Q1 results were preceded by a 0.3% drop in New Jersey’s overall casino revenue figures over the course of 2024.

However, the alarm bells were sounding loudest at Bally’s Atlantic City, which was the only casino venue to post operating losses. In contrast, despite declining revenues, the remaining eight other Atlantic City casino venues still all remained profitable.

At the core of the problem appears to be Atlantic City’s overall hotel occupancy rate at its casino resorts, which slipped to 62.9%, down from 64.8% a year ago. This is coupled with the news that the average nightly rate also fell by 3% to $159, showing how venues are locked in a pricing war as they compete for dwindling patron numbers to the gambling hub.

It wasn’t all bad news, as Hard Rock and Tropicana were two venues which recorded a profit – if only a modest total. However, Bally saw its Atlantic City net revenues plummet 7.7% to $41.7 million, resulting in an astonishing operating loss of $6.6 million in Q1.

Reflecting a 169.3% YoY decline, industry experts suggest that Bally’s issues indicate deeper-rooted problems beyond the broader market headwinds witnessed elsewhere.

One explanation for the drop in visitor numbers to Atlantic City as a whole may stem from the surge in consumer complaints, which range from poor slot machine payouts to subpar hospitality services.

However, Bally’s CEO, Robeson Reeves, also blamed their poor results on bad weather and increased regional competition.

While Q1 signifies that Bally faces the biggest challenge ahead, across the board, casino operators will all be hoping for a reversal of fortunes as they head into the peak summer season.

The industry will need to embrace changes to improve overall guest experience levels for Atlantic City’s casino sector to keep pace with the state’s soaring iGaming revenues. Inevitably, continued competition between the casino resorts could see venues forced to slash their nightly rates even further.