The New Jersey Division of Gambling Enforcement released the Q4 2018 report on Monday, and there is plenty of data to sift through.

Unlike the monthly reports that focus on gross gaming revenue, the quarterly reports provide a more nuanced view of the Atlantic Citycasino market.

On Wednesday, the New Jersey Division of Gaming Enforcement released its November gaming revenue report, which showed brick-and-mortar gaming win of $209.2m, up 12.9% from the same month last. Atlantic City, New Jersey. Atlantic City Gaming Revenue Annual statistics for Casino, Slot, Table, & Internet Win, 1978-2019. Combined Facility Report: Atlantic City Casinos, 2012 Data on games, devices, revenue, and square footage. Combined Facility Report: Atlantic City Casinos, 2011 Data on games, devices, revenue, and square footage.

Revenue, operating profits, hotel occupancy, and room rates are just some of the data laid bare in the reporting. And because it provides a year-end synopsis, the fourth quarter report is the most anticipated.

Here’s what the latest report tells us about the Atlantic City casino market.

Revenue and profits go in opposite directions

When it comes to revenue and operating profits, 2018 was a mixed bag for Atlantic City casinos.

The market saw net revenue grow from $2.7 billion in 2017 to $2.9 billion in 2018. That’s an increase of 7.5%.

At the same time, gross operating profits decreased by 15.4% in 2018. AC casinos pocketed $688.6 million in gross operating profits in 2017, but only $582.6 million in 2018.

Neither of those results is overly surprising considering the market gained two new casinos — Hard Rock and Ocean Resort (now called Ocean Casino) — in late-June.

But not every casino experienced a decline:

• Bally’s AC: -5.7%
• Borgata: -18.8%
• Caesars: -15.4%
• Golden Nugget: 12.5%
• Hard Rock: N/A
• Harrah’s: -6.5%
• Ocean Resort: N/A
• Resorts Casino: -2.7%
• Tropicana: 1.4%

It appears Hard Rock and Ocean (larger, swankier properties) are poaching some of Borgata’s higher-end customers.

More hotel rooms cause occupancy rate to fall

Things were just like Jekyll and Hyde on the hotel side.

With the addition of the two new casinos, room inventory increased by 25%. The 15,000 rooms were the most in the market since 2014.

Atlantic City Casino Revenue November 2018 Philippines

A lot of those rooms went unoccupied. Occupancy rates decreased by 6.2%. But, as seen in the chart below, 2017 was a severe outlier on that front, so 2018 occupancy is in line with other years.

What might be a little surprising is the lower occupancy rate didn’t have a negative effect on room rates.

Casinos benefit from higher room rates

The average price of a room at Atlantic City casinos ballooned from $108.35 to $137.03 year-over-year.

So what does that tell us?

Atlantic City Casino Revenue November 2019

On average, the number of occupied rooms in Atlantic City was at its highest level since 2014:

• 2014: 14,303
• 2015: 10,873
• 2016: 11,038
• 2017: 9,819
• 2018: 12,234

And since the average room rate increased by more than 30%, the average daily haul from hotel rooms rose by 35% Y/Y.

• 2014: $1.442 million
• 2015: $1.117 million
• 2016: $1.166 million
• 2017: $1.063 million
• 2018: $1.676 million

Over the past year, Atlantic City has grown to become one of the most profitable gambling hubs in the country. New reports show that Atlantic City casino revenue increased massively in 2019’s third quarter. It’s fantastic news for the state and casino companies operating here.

Both sports betting and casino gambling continues to generate revenue here. Let’s take a look at exactly how much money the city’s gambling industry managed to generate over the past several months.

New Reports Show Atlantic City Casino Revenue is Increasing

You can’t cover the US casino industry without talking about Atlantic City. Decades ago, this was one of the most profitable gambling markets in the world. Unfortunately, the recession took a major toll on this city and it seemed on the brink of collapse.

Recently, however, things have improved dramatically. Revenue in this city has continued to increase for almost all of 2019. There are a few major reasons why this is.

The legalization of sports betting is certainly helping. New Jersey made sports gambling legal in May of 2018. Every casino in the state now operates a sportsbook. It’s helped to generate millions of dollars for the state government via taxes. New Jersey now has the most profitable sports betting market in the world.

New reports show that Atlantic City casino revenue increased massively during this year’s third quarter. Gross profit for the three months increased to $26.5 million, representing a 12.5% increase from the same time period in 2018. Atlantic City’s nine casinos generated $928.9 million in net revenue.

Things are looking very good here. Based on the way things are going, this will be the best year in the city’s history.

Which Casinos Generated the Most Money in Q3?

July, August, and September are all popular gambling months. It’s not a huge surprise to see so much money flowing into the casinos during this quarter. Some casinos managed to earn considerably more than others, though.

Borgata Casino generated the most money. It’s the most popular casino in the city and blew all of its competitors out of the water. In total, this gambling venue brought in $210,141,863. Hard Rock Atlantic City brought in the second-most money at $106,663,788.

These properties have reason to celebrate. James T. Plousis, Casino Control Commission Chairman in NJ, states that non-gambling amenities in the city proved successful last quarter, too.

“Positive trends also continued with important tourism indicators,” he said. “Non-gaming amenities continue to create a competitive advantage, and visitors like the diverse dining, entertainment and leisure activities that Atlantic City has to offer.”

Just about every casino had a solid few months. Things are obviously slowing down as winter approaches yet many are still generating more money than they did last year.

Sports Betting Revenue Surges in AC, As Well

There’s never been a better time to be a sports fan in Atlantic City. Sportsbooks in this city are continuing to improve. Both online and land-based sports gambling is legal here. For almost all of 2019, revenue from this industry has increased.

In October, sports betting helped to increase gambling revenue in this city to $266.23 million. Statewide, sports bettors here placed $487.9 million in legal sports wagers last month. 85% of these bets were placed online.

Atlantic City Casino Revenue November 2018 Events

Altogether, more than $3.5 billion has been spent on sports bets in this state.

“New Jersey sportsbooks have surpassed Nevada’s in recent months, and it continues to show significant promise for the gaming industry,” said Steve Callender, president of the Casino Association of New Jersey and senior vice president of operations for the East Region of Tropicana Atlantic City’s parent company, Eldorado Resorts Inc.“We are optimistic as we approach the end of this year that we will finish 2019 out in a strong position.”

Atlantic City casino revenue and sports betting revenue continue to increase. This city has the potential to become the country’s true gambling center.

Atlantic City Casino Revenue November 2018 Calendar

Stay tuned for more Atlantic City gambling news over the next few months!