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Atlantic City Casinos Are Not Doing As Well As You Think, And Here’s Why

On the surface, Atlantic City casinos appear to be doing very well in 2021.

Casino executives are publicly expressing optimism at every opportunity and encouraging guests to return. Double-digit growth in first-quarter profits and a new monthly gambling revenue record lend credibility to the notion that Atlantic City casinos are winning big.

Expect similar results when July revenue and second-quarter industry profit reports are released later this month.

But take a closer look.

Labor levels and costs, promotional spending, and general operating expenses are all lower than two years ago. The amount of money being gambled, average customer spend per visit, non-casino revenue, and the number of occupied hotel rooms are all down.

So, why is there an unchallenged perception that Atlantic City casinos are performing as well as — or better than — they were before the pandemic?

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