ATLANTIC CITY — The city’s casino industry is riding a winning streak.
For the third consecutive quarter, the city’s seven remaining casinos reported double-digit growth in gross operating profits, according to figures from a state Division of Gaming Enforcement news release Tuesday.
“Revenue, occupancy rates and profits all increased, and with everything else that’s going on or going up in Atlantic City right now, I think the industry’s future looks a little bit brighter every day,” said Matthew B. Levinson, chairman and chief executive officer of the Casino Control Commission. “They must be doing something right.”
The city’s remaining casinos saw their profits increase by more than 16.2 percent during the second quarter of this year. Gross operating profits for the properties totaled $169.3 million in the second quarter, compared with $145.7 million during the second quarter of 2016.
Gross operating profits for the year are up more than 20 percent, totaling more than $308.6 million.
Despite the increase in profits for the surviving casinos, Colin Mansfield, a director at Fitch Ratings and a lead analyst in the gaming, lodging and leisure sector, said the market is stagnant overall.
Five casino closings since 2014 helped contribute to the remaining properties’ increases in profit, Mansfield said.
“If you look at the market in terms of profit it looks healthy,” Mansfield said. “But if you look at the other numbers it’s still a $2.4 billion market over a rolling 12-month period.”
Overall, casino revenues remained stable during the first six months of the year.
“It should remain this way until through 2018,” Mansfield said about casino revenues. “I don’t see it moving one way or the other.”
Total casino revenue, including internet, gaming and hospitality, totaled more than $1.7 billion during the first six months, according to the report. Gross gaming revenue through June totaled $1.2 billion, up nearly 2.5 percent over the same period last year.
“The results for 2017, thus far, show the ongoing stability in the casino industry’s revenue and an overall improvement in Gross Operating Profit,” said David Rebuck, director of the Division of Gaming Enforcement. “These latest financial results, combined with the renewed interest in Atlantic City, continue to provide a basis for optimism regarding the casino hotels and overall tourism in Atlantic City.”