New Jersey Casino Net Revenue Up in Second Quarter Over Q1
On Thursday, the New Jersey Division of Gaming Enforcement released the second quarter report for casinos in New Jersey. The casino licensees reported a net revenue — which includes casino, room, and food and beverage revenue — of $806.8 million, an 18.2 percent increase over the same quarter last year.
But the gross operating profit — the earnings before interest, taxes, depreciation, amortization, charges from affiliates, among other various items — for the second quarter was $159.3 million, a 6.8 percent decrease compared to the same period last year. The good news for New Jersey casinos was that this was a significant improvement over 2019’s first quarter.
New Jersey Casinos Second Quarter 2019 vs. 2Q 2018
|2Q 2019||2Q 2018||Change|
|Gross Operating Profit||$159.3M||$170.9M||-6.8%|
The total net revenue and gross operating profit figures include internet gaming and sports betting in New Jersey casinos.
For the first six months of 2019, the licensees in New Jersey casinos saw a net revenue of $1.511 billion, a 17.8 percent increase over the first half of 2018, but a gross operating profit of $245.1 million, a decrease of 16.8 percent.
New Jersey Casinos First Half 2019 vs. 1H 2018
|1H 2019||1H 2018||Change|
|Gross Operating Profit||$245.1M||$294.5M||-16.8%|
Third party business — individuals or entities that lease space in the casinos and provide food, beverage, retail, hospitality, or entertainment — increased in both quarters. In the first quarter, Third Party Business reported $54.6 million, an increase of 39.3 percent. In the second quarter, Third Party Business was $61.7 million, an increase of 23.8 percent over the same period in 2018.
Net Revenue Up, Operating Profit Down
The second quarter results showed an uptick in new revenue for the second quarter of 2019 vs. the first quarter. First quarterly reports revealed that net revenue was $704.6 million, an increase of 17.6 percent for the first quarter of 2018.
Two additional casinos (Hard Rock and Ocean Resort Casino) opened in Atlantic City, for a total of nine, since last year’s number for the same period, U.S. News & World Report documented.
Initially, it seemed that more competition within casinos drove business down, when looking at first quarter figures for 2019, but the second quarter saw improvement. While the gross operating profit decreased in the second quarter for 2019 vs. 2018, it was not as dramatic of a percentage drop as the first quarter of 2019 compared to last year.
New Jersey Casinos Second Quarter 2019 vs. 1Q 2019
|2Q 2019||1Q 2019||Change|
|Gross Operating Profit||$159.3M||$87.0M||+83.1%|
The three casinos that generated the most net revenue in the second quarter of 2019 were Borgata ($202 million), Hard Rock ($103.7M), and Harrah’s ($96.4M), all in Atlantic City. The top three casinos in New Jersey for gross operating profit in the second quarter were Borgata ($55.4M), Harrah’s ($23.0M), and the Tropicana Casino and Resort ($22.6M), also in Atlantic City.
Be first to get our exclusive sports offers!
Join today to stay up to date on your states gambling news and offers.