The city’s finances are in disarray, but the casino industry in Atlantic City is on the upswing.
Total revenue for Atlantic City casinos and online gambling sites grew 2.7 percent in the first quarter of this year, according to a report from the Garden State’s Division of Gaming Enforcement.
Total revenue was $802.6 million through Mar. 31, up from $781.7 million during the same period a year prior.
An increase in gaming win was the reason. Revenue from gambling was up by roughly $20 million year-over-year. Revenue from hotel rooms was up slightly to $88.5 million. Revenue from food and beverage ($98.3 million) and entertainment and “other” ($32.8 million) were basically unchanged.
Third party business sales were up 4.7 percent to $42.5 million in the quarter.
The occupancy rate in the city’s casino hotels for the first quarter of 2016 was 73.8 percent, which was one percent higher year-over-year, the state said.
Borgata had $245.5 million of the total revenue figure, which was a 4.2-percent year-over-year gain. Resorts Casino, thanks to its online gaming business, led the way with a 10.5-percent total revenue increase in Q1 ($46.7 million).
Resorts is Amaya Gaming’s brick-and-mortar partner.
Gross operating profit for the casinos was $106.6 million in Q1, up 31.1 percent from the $81.3 million in Q1 of 2015. Gross operating profits for the city’s eight remaining casinos grew by 40 percent in 2015.
Atlantic City has eight brick-and-mortar casinos after four closed in 2014.
The owner of Revel, the most expensive casino in the city’s history, plans to re-open part of the property this summer and recently said “Atlantic City is a perfect place to put money.”
