After being shut for 108 days to July 2 owing to the coronavirus pandemic and the nine casinos in Atlantic City have now reportedly posted an aggregated third-quarter gross operating profit that is down by some 37.2% year-on-year to $150.5 million.
According to a Monday report from The Press of Atlantic City newspaper, the gambling-friendly facilities were ordered to shut their doors from March 16 and subsequently saw their combined second-quarter operating losses climb to beyond $112 million. The source detailed that these venues were moreover ravaged as re-opening brought 25% capacity restrictions as well as further constraints surrounding indoor dining and the hosting of concerts, trade shows and conventions.
Jane Bokunewicz, Institute Coordinator for Stockton University’s Levenson Institute for Gaming, Hospitality and Tourism, reportedly told the newspaper that the third-quarter figure from the New Jersey Division of Gaming Enforcement confirmed ‘what many have already suspected’ in that the almost four-month shutdown has taken a serious toll on the land-based casino industry in New Jersey.
Bokunewicz reportedly told The Press of Atlantic City…
“The current public health crisis has both suppressed consumer demand for bricks and mortar casino gaming and related amenities and increased the costs of operating these services. This is a devastating equation for casino operators and their employees as evidenced by the 37% drop in gross operating profit for the quarter.”
The newspaper reported that Atlantic City’s casinos have now recorded an aggregated gross operating profit of just over $68 million for the first nine months of 2020, which equates to a fall of almost 86% year-on-year. To make matters worse and the nine-month tallies for Hard Rock Hotel and Casino Atlantic City, Borgata Hotel Casino and Spa, Bally’s Atlantic City and Resorts Casino Hotel purportedly all stand in the red as many of these forked out large amounts of cash for extended employee medical benefits, systems to improve air quality and personal protective equipment for guests and workers.
James Plousis serves as Chairman for the New Jersey Casino Control Commission and he reportedly told The Press of Atlantic City that these additions are however paying dividends as only 251 of the city’s casino workers have been diagnosed with coronavirus since their workplaces re-opened in July.
Reportedly read a statement from Plousis…
“Re-opening with prudent restrictions on capacity, limited amenities and entertainment hindered earnings but allowed for responsible management of the casino hotels, minimizing risk and building a foundation for a successful recovery.”