The New Jersey Division of Gaming Enforcement reported Q2 2026 casino revenue up slightly year-on-year, but gross operating profit fell sharply, highlighting ongoing margin pressure for Atlantic City operators
The New Jersey Division of Gaming Enforcement has released its official Q2 2026 report, showing that while casino revenue in the state edged up compared to last year, gross operating profit for Atlantic City’s licensees declined by double digits. The figures reflect a challenging environment for operators, with rising costs and competitive pressures continuing to impact bottom lines even as topline revenue remains stable.
Revenue and Profit Trends
According to the DGE, net revenue from New Jersey’s nine casino licensees reached $844.5 million in the second quarter, a 0.9% increase from Q2 2025. However, gross operating profit for the same period dropped 10.1% to $164.9 million. The first half of 2026 followed a similar pattern: net revenue rose 0.2% year-on-year to $1.57 billion, while gross operating profit fell 15.5% to $269.6 million. These results suggest that while demand for casino gaming remains steady, operators are facing higher expenses or other margin pressures that are eroding profitability.
Casino-by-Casino Breakdown
Performance varied significantly among Atlantic City’s casinos. Only Caesars and Ocean Casino reported increases in both net revenue and gross operating profit for Q2. Here’s how each licensee performed:
Bally’s posted $47.5 million in net revenue (down 3%) and $2.1 million in operating profit (down 8.8%). Borgata led the market in revenue with $218.4 million (up 3.6%) but saw profit fall 4.7% to $60.1 million. Caesars reported $68 million in revenue (up 7.7%) and $12.9 million in profit (up 2.9%). Golden Nugget’s revenue dropped 6% to $36.3 million, with profit down 43% to $2.9 million. Hard Rock saw a slight revenue dip to $148.4 million (down 0.9%) but managed a 10.5% increase in profit to $29.1 million. Harrah’s revenue rose 2.7% to $69.6 million, but profit declined 6.8% to $11 million. Ocean Casino posted $142 million in revenue (up 9.2%) and $30.1 million in profit (up 12.2%). Resorts experienced the steepest declines, with revenue down 20.3% to $39.6 million and profit down 95.2% to $474,000. Tropicana’s revenue slipped 0.5% to $66.6 million, with profit down 8.7% to $13.6 million. CIENJ, which operates internet gaming for Resorts, reported $8 million in revenue (down 28.2%) and $2.5 million in profit (down 43.5%).
Hotel Occupancy and Market Context
Hotel occupancy rates at casino hotels also improved modestly. The DGE reported a 73.2% occupancy rate for Q2, up 0.6 percentage points year-on-year. For the first half of 2026, occupancy averaged 69%, a 1.2-point increase from the previous year. These figures indicate that while more visitors are staying at casino hotels, the additional volume has not translated into higher profits for most operators.
Competitive Pressures and Regulatory Developments
New Jersey’s casino sector continues to face competition from neighboring states and the ongoing expansion of online gambling. Operators are also contending with rising labor and operational costs, which are squeezing margins even as revenue remains relatively flat. The DGE’s quarterly reports are closely watched by industry stakeholders for signs of market health and regulatory trends. For context on how regulators in other jurisdictions are responding to industry challenges, see how the Victorian Gambling and Casino Control Commission is addressing gambling harm through its recently announced Strategy 2029.
Gross operating profit is a key metric used by regulators and analysts to assess the financial health of casino operators. Unlike net revenue, which measures total income after payouts to players, gross operating profit reflects the earnings left after accounting for operating expenses such as labor, utilities, and marketing. This figure provides a clearer picture of how much money casinos are actually making from their core business, and is often used to compare performance across operators and over time. Persistent declines in gross operating profit, even when revenue is stable, can signal underlying cost pressures or shifts in market dynamics that may affect future investment and employment in the sector.
