Wednesday, December 24, 2025
36.0°F

Virus closures send Atlantic City casinos to $112M Q2 loss

Associated Press | Hagadone News Network | UPDATED 5 years, 4 months AGO
by Associated Press
| August 24, 2020 12:27 PM

ATLANTIC CITY, N.J. (AP) — The coronavirus outbreak sent Atlantic City's casinos plunging to a $112 million second quarter gross operating loss as the gambling houses remained closed for the entire three-month period, according to figures released Monday by state gambling regulators.

That compares with an operating profit of nearly $160 million in the second quarter of last year.

Only one of the nine casinos — the Golden Nugget — reported an operating profit for the quarter, and that was helped by the market-leading internet gambling operation. The casino made $3.1 million, down nearly 69% from a year earlier when it made over $10 million.

New Jersey Gov. Phil Murphy ordered the casinos closed on March 16, and did not allow them to begin reopening until July 2. That more than covers the entire second quarter, the months of April, May and June.

The casinos offered online gambling and sports betting during the quarter, which provided them some revenue during the period their physical buildings were shuttered. The nine casinos collectively reported $121.4 million in net revenue, down nearly 85% from the second quarter of 2019.

The individual casinos, as well as gambling regulators, dismissed the numbers as not comparable to last year, when the industry was in full swing. Rather, they concentrated on efforts to convince customers the reopened casinos are clean and safe.

“During this period, the casinos undertook an amazing effort and expense to prepare a safe environment for the return of employees and guests,” said James Plousis, chairman of the New Jersey Casino Control Commission. “That critical investment enabled the casinos to begin welcoming back visitors with appropriate limits in July, and started Atlantic City on the road to recovery.”

“This closure was a setback to Ocean's momentum gained through February 2020,” said Terry Glebocki, CEO of the Ocean Casino Resort. "We want to thank our employees who worked tirelessly to prepare us for reopening and are happy to have two-thirds of our workforce back in the building.”

Ocean had an $11.8 million loss, compared to a $1.2 million loss in the second quarter of last year.

The Borgata had the biggest loss at more than $40 million for the quarter, compared to a $55 million profit in the second quarter of last year.

Hard Rock had a loss of $18.2 million, compared to a profit of $11.2 million a year ago; Harrah's had a $15.1 million loss, compared to a $23 million profit a year ago; Resorts had a $12.6 million loss, compared to a $5.3 million profit a year ago; and Tropicana had an $11.8 million loss, compared to a $22.6 million profit last year.

Caesars had a $9.9 million loss, compared to a profit of $16.3 million a year ago, and Bally's had a $8.7 million loss, compared to a $9.3 million profit a year ago.

The shutdown of the physical casinos provided an opportunity for online gambling operations, including the state's two internet-only entities. Caesars Interactive NJ earned $7.7 million in the second quarter, up more than 54% from a year earlier, and Resorts Digital posted a profit of $5.7 million, up more than 194% from a year earlier.

___

Follow Wayne Parry at http://twitter.com/WayneParryAC

ARTICLES BY ASSOCIATED PRESS

August 18, 2021 12:03 a.m.

Hong Kong police arrest 4 from university student union

HONG KONG (AP) — Four members of a Hong Kong university student union were arrested Wednesday for allegedly advocating terrorism by paying tribute to a person who stabbed a police officer and then killed himself, police said.

July 25, 2021 12:09 a.m.

For South Sudan mothers, COVID-19 shook a fragile foundation

JUBA, South Sudan (AP) — Paska Itwari Beda knows hunger all too well. The young mother of five children — all of them under age 10 — sometimes survives on one bowl of porridge a day, and her entire family is lucky to scrape together a single daily meal, even with much of the money Beda makes cleaning offices going toward food. She goes to bed hungry in hopes her children won’t have to work or beg like many others in South Sudan, a country only a decade old and already ripped apart by civil war.

July 24, 2021 12:09 a.m.

For South Sudan mothers, COVID-19 shook a fragile foundation

JUBA, South Sudan (AP) — Paska Itwari Beda knows hunger all too well. The young mother of five children — all of them under age 10 — sometimes survives on one bowl of porridge a day, and her entire family is lucky to scrape together a single daily meal, even with much of the money Beda makes cleaning offices going toward food. She goes to bed hungry in hopes her children won’t have to work or beg like many others in South Sudan, a country only a decade old and already ripped apart by civil war.