Atlantic City Casinos Hit by 23% Q1 Profit Drop as Costs Soar

Atlantic City’s casino industry is feeling the squeeze, with first-quarter profits in 2026 plunging 23% compared to the same period last year. The sharp decline comes as operators grapple with higher costs and flat net revenue, according to the latest report from the New Jersey Division of Gaming Enforcement (DGE).

The nine casinos in the city collectively saw their bottom lines narrow further after a 4% profit drop in 2025. While revenue remained stagnant, escalating expenses—including labor, utilities, and regulatory fees—ate into profits. Two casinos even reported operating losses for the quarter, highlighting the financial strain.

Industry analysts point to a mix of economic pressures and increased competition as key factors behind the downturn. With no immediate relief in sight, Atlantic City’s gaming market may face continued challenges in the months ahead.