“Based upon filings made with the Division of Gaming Enforcement, the casino licensees reported 4th quarter 2020 Net Revenue of US$538.1m reflecting a 25.9% decrease and Gross Operating Profit decreased 53.1%. For the 12months of 2020, Net Revenue was US$1.9bn and the Gross Operating Profit was US$117.5m. In light of the casino closures during the entire 2nd quarter and operating restrictions in the 3rd and 4th quarters, the Net Revenue and Gross Operating Profit for the year-to-date period are not comparable to 2019,” informed the New Jersey Division of Gaming Enforcement.
“The occupancy rate in the industry’s casino hotels for the three months ended December 2020 was 46.3% and the occupancy rate for the 12 months ended December 2020 was 61.7%. Due to COVID-19 pandemic, the casino hotels were closed on March 16, 2020 and began to reopen on July 2, 2020. The occupancy rates exclude the duration of the shutdown period,” the entity also stated.
James Plousis, Chair of the New Jersey Casino Control Commission, said: “Atlantic City and its casinos endured their most challenging year in history. Yet, through responsible management, the casinos proved that in-person gaming could happen safely. As tourists return to the shore, they can have every confidence Atlantic City is safe for the summer.”
Ocean was the only gaming floor in New Jersey that actually boosted its profits during the year. It also had the best occupancy level during 2020 at 84%.
Terry Glebocki, Ocean’s CEO, added: “Despite 2020’s extraordinary challenges, Ocean showed continued growth, emerging as an industry leader in gross gaming revenue. Thanks to our team’s hard work and determination in the months before and after our temporary closure due to the global pandemic, Ocean had a successful year. As restrictions ease and we reopen additional areas of our business, I’m optimistic we’ll continue to see gaming growth throughout 2021.”
Leading the way the Tropicana came in with a profit of US$18.7m, marking a fall in profits of 78%. Hard Rock generated US$10.9m, marking a fall of 72%. Caesars generated US$10.4m in profit falling by 84%. Harrah’s was down 90% generating a profit of US$8.5m. Golden Nugget’s profit fell 74% to US$7.2m. The Borgata’s profit came in at US$650,000 for the year, a fall of 99.7% Resorts reported an operating loss of US$10.5m, from a profit of US$17.6m in 2019. Bally’s generated an operating loss of US$10m, compared to a US$27.5m profit last year.
Source: G3 Newswire
