Atlantic City Profits Increase in Quarter 3
The success is due to minimal marketing expenses incurred at Ocean Casino Resort and Hard Rock. This is according to statistics from New Jersey Division of Gaming Enforcement. The stats reveal the gross operating profits (GOP) reached $239.4 million from July through September. In 2018, Atlantic City has basically seen a 12.5 percent premium on the three-month period.
In late June of 2018, two of Atlantic City’s casinos reopened with new identities. Another contributing factor to Atlantics City’s success is the new Boardwalk casinos which have attracted customers in quarter three. All the casinos earned a profit that adds up to $239 million between July, August, and September of 2019.
There was an improvement from the Ocean Casino Resort which saw a $10 million profit more than that of the previous year. Hard Rock and Ocean resumed operation in June 2018 and initially struggled the attract customers.
Atlantic City Net Revenue
Casino gaming revenue figures are usually based on the company’s overall performance. For Atlantic City, the high figure is a reflection of the casino’s food and beverage, promotional allowances plus rooms as well as other ancillary earnings which was also up in quarter 3 of 2019. The company’s net revenue is up 10.8% through three quarters of 2019 although seven of the Ocean and pre-Hard Rock properties are down when compared to the same time in 2018.
Hotel Rates and Fine Print for Atlantic City
In terms of hotel room occupancy, Atlantic City climbed up to 90.8% in 2019 compared to 88.2% for the third quarter in 2018. With 1,399 rooms, Ocean Casino is the star of the show. The casino achieved the average rate per occupied room which is $219.01. Ocean Casino also saw an industry high of 99.6% occupied rooms. Borgata, on the other hand, had a $184.77 average rate with a 91% occupancy rate. The casino with the lowest average was Golden Nugget. The casino has 717 rooms available at a rate of $90.25.
According to DGE, net revenue differs with gross operating profit in that net calculates casino revenue plus food and beverage revenue as well as rooms revenue all of this excluding all promotional allowances.