Atlantic City’s Internet Gambling Boom: A New Era in Casino Revenue
ATLANTIC CITY, N.J. — The sunshine-infused shores of Atlantic City continue to light the path for New Jersey’s burgeoning gambling market, with recent reports revealing a staggering record in online gaming revenue. In September, the combined winnings from the city’s casinos and their digital partners eclipsed $208 million, marking a historic moment as online gambling in the area continues its rapid ascent.
A New Milestone
Figures released by the New Jersey Division of Gaming Enforcement illustrated that the threshold of $200 million in monthly internet gambling revenue was finally surpassed. This is a testament to the increasing importance of online gambling in the state, especially as traditional casino earnings have been slow to recover post-pandemic. While physical casino revenues are significant, there’s a complicating factor: much of the internet gaming revenue is shared with outside technology providers, making in-person gambling earnings crucial to the casinos’ bottom lines.
Uneven Growth on the Casino Floor
Despite the robust online numbers, the performance of brick-and-mortar casinos paints a contrasting picture. Although September’s overall casino win surpassed pre-pandemic levels from September 2019 by $6 million, five of the nine casinos reported lower in-person revenues compared to five years ago. This discrepancy underscores a complex narrative: while virtual gambling flourishes, many traditional venues struggle to recapture their share of the local gaming landscape.
Insights from Industry Experts
James Plousis, chair of the New Jersey Casino Control Commission, reflected on this trend, stating, “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.” It’s noteworthy that total gaming revenue crossed the $500 million mark for the third consecutive month, particularly impressive since it had only previously achieved this feat once in August of the previous year.
Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, echoed Plousis’ sentiment but also provided a sobering analysis. She categorized September’s results as a “mixed bag,” where the rapid growth in internet revenues contrasted starkly with a more stagnant performance in brick-and-mortar gaming. To put this in perspective, internet gaming accounted for an impressive 40.8% of total revenue in the industry through the first three quarters of 2023.
Casino by Casino Performance
Breaking down individual casino performances reveals both winners and losers. Borgata continued its stronghold with $62.4 million in September, representing a notable 15% increase. However, neighbors like Ocean suffered dramatically, seeing a decline of 28% with winnings of just $28.4 million.
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In-Person Casino Revenue:
- Borgata: $62.4 million (up 15%)
- Hard Rock: $44.6 million (down 4.7%)
- Ocean: $28.4 million (down 28%)
- Caesars: $20.5 million (down 4.1%)
- Other casinos, including Harrah’s, Tropicana, and Resorts, also experienced declines of varying degrees.
- Combined Internet and Sports Betting Revenue:
- Borgata: $120.2 million (up 12%)
- Resorts: $106.5 million (down 3.4%)
- Golden Nugget: $72.8 million (up 25.8%)
- Notably, Ocean, despite its in-person struggles, saw significant activity with $33.9 million, though this still represented a 24% decline compared to previous years.
Despite the fluctuations, total revenue for the casinos and the two racetracks engaging in sports betting accumulated to $558 million last month, reflecting a 7.1% increase from the same month in the previous year. Out of nearly $1.1 billion wagered, casinos retained $119.5 million, showcasing the financial dynamics at play in this robust gaming ecosystem.
The Road Ahead
As Atlantic City navigates these fluctuating tides of online and offline gambling, it faces both opportunities and challenges. While the internet gambling sector appears to be booming, it compounds the need for casinos to adapt their strategies to meet evolving consumer preferences. Whether through enhanced digital offerings or revitalized in-person experiences, the future of gambling in Atlantic City will hinge on innovation and adaptability.
With the undeniable impact of online gambling continuing to reshape the revenue landscape, this once-storied resort city must evolve or risk falling behind in a competitive and ever-changing market. As we look ahead, the intertwining paths of internet and traditional gambling will be critical in shaping the next chapter for Atlantic City’s iconic casinos.
For now, the glimmering lights of Atlantic City radiate with promise and potential, firmly establishing themselves in the rapidly diversifying world of modern gaming.
