Are Atlantic City’s casinos bouncing back?

ntic City’s casinos boasted a significant boost to profitability during 2016, according to the latest figures from the State Division of Gaming Enforcement.

Gross operating profits increased by 7.3%, according to figures released on Friday, with the eight casinos accounted for generating an operating profit of over $587m. As the Trump Taj Mahal casino closed in October, removing its figures from the equation results in the figure climbing to a 9% profit increase for the remaining seven casinos.

As well as a 1.5% increase in the amount casinos won from gamblers last year, the figures shown on Friday are encouraging news for a resort city which had fallen on hard times in recent years.

The earnings were boosted by a strong fourth quarter, normally the slowest period of the year. This was helped by ongoing increases in internet gambling winnings for the casinos. For the last three months of 2016, the casinos received $116m in operating profit, an increase of 20.3% from the same period in 2015.

The Chairman of the New Jersey Casino Control Commission, Matt Levinson, called the fourth quarter results “a strong finish to a very good year.” Levinson also said the casinos generated $3.7bn in economic activity, including hotel room revenue and third-party sales last year.

“I am encouraged by these results and the stability that exists in the industry after many years of revenue declines,” said David Rebuck, the state’s Gaming Enforcement Director. “When this recent operational momentum is combined with the growth in casino revenues thus far in 2017, especially from internet operations, I am optimistic that the casino hotels can continue to improve operating results during 2017.”

Difficulties faced over the last three years have taken their toll on the city, with five of its 12 casinos shutting down. Thanks to less competition, and revenue from online operations, the surviving seven casinos are now regaining their footing.

The Borgata reported the biggest operating profit at almost $245m, which is an increase of 13.3% from 2015. Casino President, Tom Ballance, said the Borgata is off to a roaring start in 2017, with March being the casino’s best ever month for $40m in gross slot machine winnings so far.

Harrah’s posted the next largest profit at $119m, down 3% from 2015, while Caesars generated $80m in profit, also down 3.7%. Tropicana, however, was up 15.7% from last year at $53.7m profit.