Atlantic City Casinos Stumbled in The First Quarter of 2026
Just a week after the New Jersey Division of Gaming Enforcement released a glowing report on the Atlantic City casino industry's combined revenue for April, the same agency announced a grim series of numbers for the first quarter of 2026.
Net revenue flatlined, gross operating profits dropped
The audited numbers for January, February, and March showed that net revenue of $725.6 million was virtually unchanged from the same period in 2025.
But gross operating profit declined almost 23%, to $104.7 million for the nine casinos.
Net revenue reflects dollars earned from casinos, hotel rooms, food and beverage items, and other revenue. Gross Operating Profit reflects earnings before interest, taxes, depreciation, amortization, charges from affiliates, and other miscellaneous items.
Only one AC casino gained ground in Q1
As far as net revenue for the first quarter, the only year-over-year double-digit improvement was achieved by Caesars - up 10.6% to $55.4 million. The one double-digit decline was the 10.9% slide by Golden Nugget, down to $30.6 million and down to a last-place slot in the industry.
The majority of the industry's revenues came from market leader Borgata ($182.3 million) in the Marina District and the two eight-year-old Boardwalk properties - Hard Rock at $127.9 million and Ocean casino at $115.8 million.
But those same three casinos also struggled badly in the first quarter of 2026 in terms of profits. Borgata was down almost 18% to $39.8 million, Hard Rock down almost 25% to $19.8 million, and Ocean down more than 16% to $18.8 million.
Two casinos actually reported modest net losses for the quarter - Golden Nugget and Bally's. The one casino that gained ground was Caesars, up 40.2% to $5 million in profits.
"Atlantic City reported flat net revenue in the first quarter, a reflection of ongoing general economic pressure," New Jersey Casino Control Commission James Plousis said in a statement.
"The casino hotels also encountered their highest first quarter costs and expenses in nine years, significantly constraining reported gross operating profits,” he added.
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Atlantic City casino hotel rate leaders
In the first quarter of 2026, Ocean commanded the highest hotel room bill at $234.42 per night - well ahead of runnersup Borgata ($176.98) and Caesars ($157.83).
Budget-minded travelers no doubt noticed that the most affordable rooms in the chilly start to 2026 were at Golden Nugget for just an average price of $101.01, followed by Resorts at $117.45. All seven of the other casinos charged an average of at least $140 per night.
Hotel occupancy in Q1 averaged at 64%, up from 2025
Of course, hotel room occupancy rates also play a key role in the bottom line. Both Hard Rock (78.2%) and Ocean (74.6%, in spite of a large industry lead in room prices) each topped the 70% mark for the quarter.
Even with the industry's cheapest room rates, Golden Nugget only filled 43.5% of its industry-low 717 rooms. Bally's also was unable to gain 50% occupancy for its room in the first quarter.
Borgata has the most hotel rooms - 2,727- as well as the second-highest room rate, contributing to its overall lead in profit.
The overall industry hotel occupancy rate for the quarter was 64.6%, representing an increase of 1.7% compared to the same quarter in 2025.
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