New Jersey’s casino industry navigated a turbulent financial landscape in 2025, characterized by resilient revenue but shrinking profit margins. According to the latest filings from the Division of Gaming Enforcement (DGE), Atlantic City’s casino licensees reported a 5.8% drop in gross operating profit for the fourth quarter, despite a modest increase in net revenue.
The data released Wednesday paints a picture of an industry caught between successful top-line marketing and the harsh realities of rising operational expenses, including wages, energy and goods.
The 2025 Fiscal Breakdown
For the fourth quarter of 2025, the industry reported $784.6 million in net revenue, a 2.0% increase over the same period in 2024. However, that growth did not reach the bottom line, as gross operating profit fell to $124.7 million.
The full calendar year told a similar story of stagnation and pressure:
- Net Revenue: $3.29 billion (Down 0.5% from 2024)
- Gross Operating Profit: $681.6 million (Down 3.9% from 2024)
- Hotel Occupancy: 71.2% annual average (Down 0.8 percentage points)
Jane Bokunewicz, faculty director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism (LIGHT) at Stockton University, noted that while operators are generating revenue, they are struggling to pass on the full weight of inflation to the consumer.
“The relationship between the net gaming revenue and GOP trends… suggests that operators have been successful in transferring some, but not all, of the increases in operating expenses on to consumers,” Bokunewicz said. She noted that while casinos have optimized expenses, external factors like soaring energy prices and labor costs have “dulled the effects” of revenue-generating initiatives.
The Casino Association of New Jersey (CANJ) described the current environment as “increasingly challenging.” CANJ President George Goldhoff emphasized that while the industry has invested hundreds of millions into property upgrades, regional competition—particularly the looming expansion of gaming in New York City—poses a significant threat.
“These figures underscore the need for operational efficiency and bolder strategies to reverse declining occupancy trends,” Goldhoff stated. He called on the State of New Jersey, the City of Atlantic City, and the Casino Reinvestment Development Authority (CRDA) to take “immediate and comprehensive action” to bolster the city’s appeal to visitors ahead of the crucial summer season.
As Atlantic City prepares for another summer, the focus remains on “resilience.” Casino operators continue to bank on capital improvements and aggressive marketing to distinguish themselves in a crowded Mid-Atlantic market.
However, with hotel occupancy softening to 64.9% in the final quarter of the year, the industry is signaling that it cannot maintain its economic engine for Southern New Jersey without a coordinated effort to improve the city’s infrastructure and safety to attract a higher volume of tourists.
