Bally’s Atlantic City Unprofitable Through First Half of 2025
Bally’s Atlantic City Unprofitable Through First Half of 2025
Table of Contents
- Bally’s Atlantic City has reported losses in the first half of 2025.
- Bally’s is the only casino in Atlantic City that is currently losing money this year.
- However, Q3 shows potential for a rebound for the wider New Jersey casino market.
The future outlook for Bally’s Atlantic City is becoming increasingly uncertain after the casino resort disclosed its losses during the first half of 2025. It is now officially the only casino in Atlantic City operating at a loss this year.
In new data released by the New Jersey Division of Gaming Enforcement (DGE), second-quarter and half-year revenues indicated that while most casinos in the region were profitable during the April to June period, their overall profit margins compared to the previous year have been diminishing.
In the second quarter alone, Bally’s reported a mere $2.3 million in profit, marking a 14.7% decrease from the same period in 2024, although it was a marked improvement from Q1. However, when looking at the first half of the year, Bally’s has struggled with a total operating loss amounting to $896,000. This reflects a staggering decline of 439% in gross operating profit over the same timeframe.
Understanding gross operating profit is vital here, as this metrics excludes considerations of interest, taxes, depreciation, amortization, affiliate fees, and various miscellaneous charges.
Bally’s Struggles: A Closer Look
According to the New Jersey DGE, Bally’s has seen a significant drop in both guest numbers and revenue per guest room. During 2024, the casino’s 1,121 rooms were occupied 62% of the time at an average rate of $154 per night.
In comparison, in the first half of 2025, occupancy plummeted to 55%, with an average nightly rate dropping to $142. This drop was significant and reflects a broader trend impacting the casino’s revenue streams across all operations. Bally’s total net revenue for the first half of 2025, including all income from gaming, hospitality, food, and beverage operations amounts to $90.6 million, down 7.7% from the prior year. This contrasts sharply with leading competitors like Borgata which reported net revenues of $385.1 million, Hard Rock at $284.7 million, and Ocean Casino at $243.1 million.
With increasing competition emerging from upcoming ventures in downstate New York, Bally’s Atlantic City needs a compelling turnaround strategy; many believe it has fallen behind and is at a risk of being overshadowed.
Positive Developments in the Region
Despite Bally’s struggles, Q2 results show signs of hope for the broader New Jersey casino market. Reports indicate that Borgata achieved a profit increase of 16% while Ocean Casino saw its profit surge by a staggering 67.9%. The data reflects a promising spring season, which has bolstered the neighboring casinos ahead of the summer tourist boom.
Casino gambling within the brick-and-mortar establishments has burgeoned this summer, with year-over-year increases reported in May, June, and July. Notably, even prior to this surge, eight out of nine Atlantic City casinos posted profits, with overall gains contributing to a 1% increase in industry profits when compared to the previous year. Operators have exhibited creativity in minimizing costs while enhancing profit margins, despite a generally flat revenue picture.
According to James Plousis, chair of the New Jersey Casino Control Commission, “All operators were profitable, despite the pressures from higher costs associated with goods and services they’ve been purchasing.”
Plousis also noted that the $179.9 million profit in Q2 was the second strongest performance for this period in the last four years. He emphasizes the positive advancements made within casinos, crediting over $1.1 billion reinvested in these properties over the past four years, enhancing the overall experience with first-class gaming, leisure, dining, and entertainment options.
