Atlantic City’s casino industry recorded higher revenue during the second quarter of 2026, while rising operating expenses reduced profitability across most properties.
The nine casinos generated $844.5 million in net revenue during the quarter, representing a 0.9% increase compared with the same period in 2025. Gross operating profit, however, declined 10.1% to $164.9 million.
The results continued a pattern seen earlier in the year, when revenue remained relatively stable while profits weakened. Industry figures showed that expenses related to labor, goods, services, and online operations placed additional pressure on casino earnings.
James Plousis, chair of the New Jersey Casino Control Commission, said casinos faced their highest second-quarter costs and expenses in nine years.
“The casino hotels encountered their highest second-quarter costs and expenses in nine years, significantly constraining reported gross operating profits,” Plousis said.
Borgata Maintains Profit Leadership
As published in New Jersey Division of Gaming Enforcement (DGE)’s release (pdf), Borgata Hotel Casino & Spa remained the most profitable casino in Atlantic City during the second quarter, generating $60.1 million in gross operating profit. The figure represented a 4.7% decline from the previous year, while revenue increased 3.6% to $218.4 million.
Ocean Casino Resort recorded the strongest profit growth among the major properties, with gross operating profit rising 12.2% to $30.1 million. Its revenue increased 9.2% to $142 million.
Hard Rock Hotel & Casino Atlantic City reported $29.1 million in profit, down 10.5%, while revenue decreased slightly to $148.4 million.
Caesars Atlantic City was another property to post higher earnings, with profit increasing 2.9% to approximately $13 million and revenue rising 7.7% to $68.1 million.
The remaining casinos reported lower quarterly profits. Tropicana Atlantic City’s profit fell 8.7% to $13.6 million, Harrah’s Atlantic City declined 6.8% to $11.1 million, and Bally’s Atlantic City dropped 8.8% to $2.1 million.
Golden Nugget Atlantic City recorded a 43% profit decline to $2.9 million, while Resorts Casino Hotel experienced the largest reduction, with profit falling 95.2% to $473,000. Resorts attributed much of the decline to a deferred revenue payment from PokerStars in the previous year that was not repeated after the partnership ended.
Revenue Growth Fails to Offset Rising Costs
During the first half of 2026, Atlantic City casinos generated $1.57 billion in net revenue, a 0.2% increase year over year. Gross operating profit dropped 15.5% to $269.6 million, leaving the market approximately $49.6 million below the previous year’s profit total.
The industry’s profit margin also narrowed from 20.4% to around 17.2%.
Borgata remained the first-half profit leader with $99.9 million, although that represented a 10.2% decrease. Hard Rock and Ocean followed with approximately $48.9 million each, together accounting for most of the market’s first-half earnings.
Caesars improved its first-half profit by 11.1% to $17.9 million, while Bally’s moved from a loss of $896,000 in the first half of 2025 to a $1.3 million profit in 2026.
Brian Tyrrell, director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism, said the figures reflected a broader profitability challenge.
“Even allowing for seasonal variation, there appears to be a clear trend in declining gross operating profit, even as the relatively mature integrated casino resort market in Atlantic City has produced steady net earnings year-over-year,” Tyrrell said.
He also noted that higher costs for goods, labor, internet operations, and sports betting contributed to the pressure on casino margins.
“Revenue at Atlantic City casinos does not always translate to profitability,” Tyrrell said.
Hotel Demand Remains Stable
Despite weaker profits, casino hotels continued to attract visitors during the first half of 2026.
Second-quarter hotel occupancy reached 73.2%, up 0.6 percentage points from the previous year. The average room rate was $171.71.
Ocean Casino Resort reported the highest occupancy rate at 87.1% and the highest average room rate at $269.24. Hard Rock followed with 86.4% occupancy, while Caesars reached 82.2%.
Across the first six months of the year, casino hotel occupancy increased to 69%, compared with 67.8% during the same period in 2025.
“All casino hotels were profitable in the second quarter, with two reporting higher profits compared to the same period last year. Stable net revenue and hotel occupancy demonstrate the casinos continue to compete well for gaming and leisure tourists,” Plousis said.
Atlantic City’s casino market faces additional changes ahead, including competition from planned New York City casinos and possible ownership changes among existing operators.
A potential acquisition of Caesars Entertainment by Golden Nugget owner Tilman Fertitta could alter the city’s ownership structure. If completed, the transaction could result in Fertitta’s company controlling four of Atlantic City’s nine casinos, requiring regulators to review whether the arrangement creates concerns under New Jersey’s economic concentration rules.