Posted on: September 3, 2024, 02:08h.
Last updated on: September 3, 2024, 02:23h.
Borgata Hotel Casino & Spa in Atlantic City will begin upgrading its gaming floor next week. The overhaul comes as the casino operated by MGM Resorts continues to lose market share, specifically high-end VIP players, to Hard Rock and Ocean.
Borgata announced Tuesday that the Gypsy Bar will close on September 6 to make way for a “reimagined gaming experience” area. The Gypsy Bar is located next to the Old Homestead and Izakaya fine dining restaurants.
The casino floor is also being equipped with a new high-end lounge featuring a curated selection of rare liquors from around the world. A new Asian-themed restaurant concept is additionally in the works.
We couldn’t be more excited about this project as we look ahead to this next phase of Borgata’s evolution,” said Nik Rytterstrom, president and chief operating officer of Borgata. “These enhancements are not just about maintaining our position in the market — they’re about pushing the boundaries of what our guests can expect from a world-class gaming destination.”
The Borgata casino floor update is the resort’s first major project since Rytterstrom took over the Marina District property in March. When he was appointed to the top role at one of MGM’s most critical assets outside of Las Vegas, Rytterstrom pledged to continue to differentiate Borgata in the competitive Atlantic City landscape, where nine casinos are battling to retain customers.
Borgata Rebound
Borgata has long been the most profitable casino in Atlantic City. It’s also long generated the most gross gaming revenue (GGR) in town. However, since Hard Rock and Ocean opened in June 2018, Borgata has seen its market dominance lessen.
In 2019, Borgata’s $709.6 million in GGR represented 26.4% of the market. Atlantic City brick-and-mortar casino revenue totaled approximately $2.68 billion that year. Hard Rock won $324 million for a 12% stake and Ocean won $215.7 million for an 8% position.
In 2023, Borgata won $729.7 million on its physical gaming floor for a 25.6% share. Hard Rock’s $512.4 million accounted for 18% of the market while Ocean’s nearly $415 million in casino win represented 14.5%.
In 2024, Borgata has managed to win back some of that lost market share, though Hard Rock continues to improve its position.
Through eight months of the year, Borgata’s roughly $427.8 million in casino win represented 26.2% of the industry. Hard Rock’s $316.9 million accounted for about 19.5%, and Ocean’s share remained stable at 14.5% with GGR of $235.6 million.
Recent Upgrades
Borgata’s investment in improvements to its casino floor comes after the resort spent $55 million to renovate the Water Club hotel tower, which was subsequently rebranded to the MGM Tower at Borgata. Each of the more than 700 guest rooms and suites were refreshed with cool, light tones.
With the main Borgata hotel, the destination offers 2,727 rooms. During the first half of 2024, Borgata reported that the rooms were occupied 71.1% of the time on an average nightly rate of $175.29.
Along with the hotel and casino, Borgata in recent years revitalized its Long Bar on the gaming floor, expanded the outdoor pool, and opened the 9,060-square-foot Overlook event space on the 32nd floor. The venue has 28-foot floor-to-ceiling windows overlooking the Marina District and Atlantic Ocean.
