Atlantic City Casino Profits Fell 22.6% in Q1 as Costs Hit a Nine-Year High, Only One Operator Grew

Atlantic City’s nine casinos collectively saw their gross operating profits fall 22.6% in the first quarter of 2026, with only one property managing to grow its profit compared to the same period a year ago, according to figures released by the New Jersey Division of Gaming Enforcement. The casinos posted a collective gross operating profit of $102.8 million during the first three months of the year, a figure that reflects the industry’s continuing struggle to manage escalating costs even as overall gaming revenue remains elevated.

James Plousis, chairman of the New Jersey Casino Control Commission, acknowledged the difficult quarterly performance, noting that the casinos “encountered their highest first-quarter costs and expenses in nine years, significantly constraining reported gross operating profits.” Gross operating profit, which measures earnings before interest, taxes, depreciation, and other costs, is the primary metric used to assess profitability in the Atlantic City market.

Costs Outpacing Revenue Growth

The Q1 data reveals a growing divergence between Atlantic City’s top-line revenue performance and its bottom-line profitability. While the New Jersey gambling market has continued to generate strong online gaming and sports betting revenue, the brick-and-mortar casinos in Atlantic City are bearing the brunt of higher labor costs, energy expenses, and capital expenditures tied to property upgrades. These cost pressures have been building for several quarters and have now reached a level where only one of the nine casino properties managed to improve its operating profit year over year.

The New Jersey Division of Gaming Enforcement did not immediately identify which single casino grew its profit in the first quarter, but the figure underscores the competitive disparity within the Atlantic City market. Properties with stronger hotel occupancy, convention business, and premium gaming segments have generally fared better against rising costs than those more dependent on slot floor revenue, which continues to face headwinds from online casino competition.

Online Gaming Continues to Grow While Brick-and-Mortar Struggles

The Q1 profitability decline contrasts with the broader strength of New Jersey’s regulated gambling market. New Jersey total gaming revenue exceeded $600 million in April for the first time since 2012, driven primarily by online casino and sports betting growth. That dichotomy between the thriving digital market and the struggling physical casino floor is becoming one of the defining tensions in the Atlantic City gaming economy.

Atlantic City has historically relied on its physical casinos as the primary economic engine for the city and surrounding region. As online gaming continues to capture a growing share of New Jersey gamblers’ spending, the land-based operators face structural pressure that cost-cutting alone may not be sufficient to address. Several Atlantic City properties have invested in renovations and new amenities in an attempt to differentiate the in-person experience, but those capital investments also add to the expense burden that weighed on Q1 results.

What to Watch Going Forward

The second quarter will be a critical test for Atlantic City, as warmer weather typically boosts visitation and the summer months represent the strongest seasonal period for the shore destination. However, analysts have noted that even strong summer revenue may not be enough to fully offset the cost trajectory if labor and operational expenses remain elevated throughout the year. The New Jersey Casino Control Commission is expected to release detailed property-level figures that will reveal which operator managed to grow profits and which properties experienced the steepest declines. Bettors and casino enthusiasts interested in New Jersey’s online gaming market can find current app recommendations at online casinos in New Jersey.