Atlantic City Casino Profits Fell in Q1, But Summer and Online Gaming Tell a Bigger Story

Atlantic City Casinos Report Q1 Profit Pressure

Atlantic City casino profits fell sharply in the first quarter of 2026, but the headline number does not tell the full story of New Jersey’s gaming market.

According to the New Jersey Division of Gaming Enforcement, Atlantic City casino licensees reported $725.6 million in net revenue for the first quarter, down 0.6% from the same period in 2025. Gross operating profit fell 22.9% to $104.7 million.

That gap matters. Revenue was nearly flat, but profit dropped much faster. That points to higher operating costs, not a collapse in demand, as the larger issue facing casino operators.

The official state report is the key source for the first-quarter financial picture. The numbers show that the pressure was concentrated in operating profit, not overall revenue. That is a different story than saying Atlantic City casino demand disappeared.

That makes the Q1 report important, but not necessarily alarming. Atlantic City’s casino industry is still producing substantial revenue. The concern is how much it costs operators to produce that revenue.

Why Q1 Does Not Tell the Whole Atlantic City Story

The first quarter is often a difficult period for tourism-driven businesses. January, February, and March come after the holiday season, before summer travel, and during months when cold weather can limit visitor traffic.

That context is especially important for Atlantic City Casinos. The city depends heavily on overnight stays, restaurants, entertainment, gaming floors, conventions, and weekend visitors. Q1 can show real pressure, but it is not the same as the summer season.

Atlantic City’s 2025 performance shows why the first quarter should not be viewed alone. After a slower start to the year, casinos posted their best summer in more than 10 years, according to NJBIZ. The report said June-through-August in-person casino win reached $855.1 million, compared with $810.5 million during the same summer period in 2024.

That summer performance is important context for the Q1 report. Atlantic City’s casino economy is seasonal, and the first quarter often does not reflect the full demand picture for hotels, restaurants, entertainment, and gaming floors.

That does not erase the Q1 profit decline. It does show why the summer season matters. Atlantic City can look very different once hotels fill, beach traffic increases, events return, and casino resorts benefit from peak-season visitation.

Online Casino Revenue Is Changing the New Jersey Market

The other major story is online casino growth.

New Jersey online casino revenue has become one of the strongest parts of the state’s gaming industry. Official revenue data available through the DGE financial and statistical information page shows how internet gaming has grown into a central part of New Jersey’s gaming revenue mix.

That state data supports the bigger trend: New Jersey’s gaming market is no longer defined only by casino floors in Atlantic City. Online casino revenue is now a major part of the state’s overall gaming business.

AP News reported that New Jersey internet gambling revenue exceeded $200 million in a month for the first time in September 2024, showing how important online gambling had become as physical casino revenue continued to move unevenly across the nine Atlantic City properties.

That does not mean Atlantic City casinos are becoming less important. Physical casino resorts still support hotel jobs, restaurants, entertainment venues, meetings, tourism, and local tax activity in ways online gaming cannot replace.

What it does mean is that New Jersey now has two major casino revenue engines. Atlantic City remains the land-based center of the market, while online casino has become a powerful statewide growth channel.

Borgata Led Q1, While Caesars Posted a Rare Gain

At the property level, Borgata remained the clear Atlantic City market leader in Q1 2026. The first-quarter casino licensee results showed Borgata at the top of the market by both revenue and operating profit.

Hard Rock and Ocean also remained major Atlantic City profit contributors during the quarter. Their results showed that the city’s newer-generation casino resorts continued to hold strong positions even as market-wide profit margins tightened.

Caesars stood out for a different reason. Its first-quarter results showed year-over-year improvement while several competitors faced sharper profit pressure.

That matters because it shows the Q1 decline was not evenly distributed. Some operators were hit harder by cost pressure, while others found ways to improve year over year.

The market is not moving in one simple direction. Profit pressure is real, but individual properties are still competing, investing, and finding opportunities.

What Comes Next for Atlantic City Casinos

The next test for Atlantic City is summer.

A weak first-quarter profit report creates concern, but the city is entering the same peak season that helped 2025 turn into the best summer for casino win in more than a decade. If visitation, hotel occupancy, entertainment demand, and gaming activity strengthen again, Q1 may look more like an early-year cost problem than a sign of broader weakness.

Online casino will also remain central to the story. New Jersey’s digital gaming market is growing quickly, and that revenue is now too large to treat as a side category. The question going forward is how Atlantic City casinos, online casino brands, regulators, and tourism leaders use both sides of the market together.

The positive view is that New Jersey is not relying on only one gaming channel anymore. Atlantic City still gives the state a physical casino destination with resorts, restaurants, entertainment, and jobs. Online casino gives the state a high-growth digital revenue stream that continues to expand.

Q1 showed pressure. Summer will show whether Atlantic City can repeat the strength it delivered in 2025. Online casino has already shown that New Jersey’s gaming market is still growing, even as the business model changes.