Atlantic City’s nine casinos posted a collective gross operating profit of $102.8 million in the first quarter of 2026, a 22.6% decline from the same period a year earlier, according to data released by the New Jersey Division of Gaming Enforcement. The sharp drop came as casino operating costs reached their highest first-quarter level in nine years, leaving only one property in the market able to grow its profit compared to Q1 of the prior year.
New Jersey Casino Control Commission Chairman James Plousis characterized the quarter as an unusually difficult one on the cost side, saying the casinos “encountered their highest first-quarter costs and expenses in nine years, significantly constraining reported gross operating profits.” Gross operating profit, the standard profitability measure for Atlantic City casinos, reflects earnings before interest, taxes, depreciation, and amortization.
Cost Pressures Define the Quarter
The Q1 results highlight the growing challenge Atlantic City faces in converting strong gaming revenue into bottom-line profitability. Labor costs, energy prices, and ongoing capital investment in property improvements have all contributed to the expense surge. These pressures are not unique to Atlantic City but are particularly acute in a market where the casinos compete directly against growing online gaming platforms that carry significantly lower operating costs.
New Jersey’s overall gaming market has remained robust. Total gaming revenue in the state topped $600 million in April for the first time since 2012, a milestone driven largely by online casino and sports betting growth. But the prosperity of the digital market has done little to relieve the cost burden on Atlantic City’s physical properties, which continue to face structural competition from the online segment that now captures a growing share of New Jersey gamblers’ spending.
Only One Casino Improved Its Profitability
The detail that only one of the nine Atlantic City casinos managed to grow its gross operating profit in Q1 illustrates the breadth of the market’s cost problem. The New Jersey Division of Gaming Enforcement is expected to release property-level data that will clarify which operator bucked the trend and what factors contributed to its relative outperformance.
Properties with stronger hotel occupancy, convention revenue streams, and premium gaming floors have generally been better positioned to absorb rising costs. Several Atlantic City operators have invested heavily in renovations and new amenities designed to attract visitors seeking an experience beyond casino gaming, but those capital outlays also contributed to the expense growth that weighed on first-quarter results. Looking ahead, the summer season represents Atlantic City’s strongest revenue period, and the second quarter will be closely watched as an indicator of whether improved seasonal revenue can offset the cost headwinds that defined the first three months of the year. Players looking for New Jersey’s best online casino options can explore recommendations at New Jersey casino apps.
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