Atlantic City casinos still profitable, but their bottom line is getting leaner

abcnews.go.com:

All nine Atlantic City casinos turned a profit in the second quarter of this year, although that collective profit was down more than 20% from a year ago

ATLANTIC CITY, N.J. — All nine Atlantic City casinos turned a profit in the second quarter of this year, although that collective profit was down more than 20% from a year ago.

Only three casinos and one online entity recorded a larger profit in April, May and June of this year than they did in those same months in 2019, before the pandemic hit.

Figures released Tuesday by the New Jersey Division of Gaming Enforcement show the casinos posted a gross operating profit of nearly $146 million in the second quarter of this year. That is down 20.5% from the same period a year ago, and also less than the $159 million operating profit they posted in the second quarter of 2019.

Gross operating profit represents earnings before interest, taxes, depreciation, and other expenses, and is a widely-accepted measure of profitability in the Atlantic City casino industry.

Its decline in the second quarter is due to several factors, including a new contract reached last summer that pays many casino workers considerably more, said Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, which studies the Atlantic City gambling industry.

“Given the increases in labor expenses that did not exist prior to July 2022 and increases in operational expenses overall, this decline is not unexpected,” she said.

The fact that all nine casinos were profitable despite higher costs is encouraging, said James Plousis, chairman of the New Jersey Casino Control Commission. The casinos currently employ about 1,000 more people than they did a year ago, he said.

Hard Rock posted the