August 24, 2026

Comments from Brian Tyrrell, faculty director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism (LIGHT), Stockton University School of Business, on Second Quarter 2026 numbers released Monday by the New Jersey Division of Gaming Enforcement:

The second quarter of 2026 release from the New Jersey Division of Gaming Enforcement (DGE) illustrates once again that revenue at Atlantic City casinos does not always translate to profitability.

While total gross gaming revenue (GGR) increased by 7.3% in the year-to-date ended June 30 compared to the same period in 2025, and net revenues increased 0.2% in the same six-month period in 2026 compared to 2025, this did not translate to gains in gross operating profit (GOP), which recorded a 15.5% decrease in the first half of 2026 compared to 2025.

Even allowing for seasonal variation, there appears to be a clear trend in declining GOP even as the relatively mature integrated casino resort market in Atlantic City has produced steady net earnings year over year. This relationship between earnings and profits suggests that something more complex is happening.

Inflationary pressures (labor, energy, cost of goods etc.) continue to impact the profitability of the industry, but this is not the only factor. The casinos have also faced a significant increase in tax burden. The recent raising of the state’s internet and online sports wagering taxes have contributed to at least $120 million in additional expenses for operators. This year, the Internet Wagering Tax increased from 15% to 19.75%, and the Online Sports Wagering Tax increased from 13% to 19.75%.

Also not to be overlooked is the reporting that the cost of attracting patrons to the resort is increasingly putting pressure on casino resort overall revenue. Even if comped rooms, food, entertainment etc. are recorded as net nongaming revenue, they are likewise recorded as an expense for gaming operations. Comps and promotional gaming credits make it difficult to compare the performance of gaming and nongaming operations within the resorts and complicate comparisons of casino hotel operations to their noncasino peers. 

Brian Tyrrell can be reached at brian.tyrrell@stockton.edu. You can also contact Mark Melhorn, associate director of News and Media Relations, at mark.melhorn@stockton.edu to set up an interview with Professor Tyrrell.