Atlantic City’s Internet Gambling Boom: A September to Remember

Atlantic City, New Jersey, has long been synonymous with gambling, but in September 2023, the city reached new heights in its online gaming scene, marking significant milestones for both its physical casinos and their digital counterparts. As reported by the New Jersey Division of Gaming Enforcement, the online gambling market achieved a remarkable achievement, with total winnings surpassing $208 million for the first time. This record-setting moment signifies a pivotal shift in the landscape of gambling in the area, highlighting the growing importance of internet-based gaming in an era where traditional revenue streams are evolving.

A Record-Breaking September

With the numbers freshly tallied, the September figures illustrate the resilience and potential growth of Atlantic City’s gambling ecosystem. For the first time ever, the combined winnings from in-person and online gaming exceeded a staggering $200 million. This achievement speaks volumes about the increasing role of digital platforms in the region, especially as many physical establishments face challenges in recapturing their pre-pandemic performance.

Online gambling has become a lifeline for the casinos as traditional in-person visits begin to falter due to various economic pressures. While in-person revenue has made a modest recovery—collectively exceeding its $6 million September 2019 figure—five out of the nine casinos still recorded lower in-person winnings than they did five years ago. This disparity underscores a crucial narrative about the evolving dynamics of gaming in Atlantic City.

The Financial Breakdown

The overall gaming revenue for Atlantic City’s casinos and the two racetracks accepting sports bets totaled over $558 million in September, representing a 7.1% increase from the previous year. James Plousis, chairman of the New Jersey Casino Control Commission, stated, "The ongoing success of internet gaming helped push Atlantic City’s total gaming revenue to its highest figure for the month of September in over a decade." A significant shift is evident; just last year, this benchmark was only achieved once—in August.

Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, provided insightful analysis on the mixed evaluations of this growth. "September’s numbers were a mixed bag," she noted, acknowledging that while online revenues soared, traditional casino revenues seemed somewhat stagnant in comparison. This pattern points to an interesting dichotomy where internet gaming represents a substantial portion—40.8%—of the overall revenue year-to-date.

Casino Performance: Mixed Results

Diving deeper into individual casino performance provides a clearer picture of Atlantic City’s gaming climate. Borgata, one of the leading establishments, won $62.4 million in September, marking a 15% increase. Conversely, other notable casinos like Hard Rock and Ocean faced declines. Hard Rock reported a 4.7% drop, bringing in $44.6 million, while Ocean’s revenues plummeted by 28%, totaling $28.4 million.

Despite these challenges, the overall financial health of the casinos appears bolstered by the concurrent rise in internet and sports betting revenues. For instance, when online and sports betting earnings are factored in, Borgata’s total revenues reached $120.2 million, reflecting a significant 12% increase. Golden Nugget also saw impressive growth, with a 25.8% rise to $72.8 million. However, it is crucial to note that physical locations are grappling with uneven revenues, a cautionary tale within this burgeoning industry.

The Road Ahead for Internet Gaming

The figures released reveal an undeniable fact: internet gambling is crucial to the future of Atlantic City’s gaming industry. The last three months have consistently exceeded the $500 million mark in total gaming revenue, a feat that highlights the potential of online gaming markets, especially if traditional casinos continue facing headwinds.

Looking forward, as casinos adapt their strategies and invest further in online offerings, the trend towards internet gambling will likely continue. This radical evolution not only reshapes the gambling landscape in New Jersey but also sets a blueprint for other regions exploring the integration of online gambling into their respective markets.

Conclusion

In conclusion, September 2023 will undoubtedly be remembered as a tipping point in the history of Atlantic City’s gambling scene. The record-setting online gambling revenue reflects a significant shift in player behavior and preferences, which may redefine how casinos operate moving forward. As the industry continues to adapt to changing circumstances, both physical and digital gaming establishments must recognize this evolving relationship and strategize accordingly. The challenges ahead remain apparent, but so too does the potential for growth and innovation within this vital sector of Atlantic City’s economy.