Atlantic City’s Internet Gambling Market Shatters Records
Introduction
In a thrilling development that highlights the shifting dynamics of the gambling industry, Atlantic City’s internet gambling sector has reached new heights. The New Jersey Division of Gaming Enforcement recently revealed that the combined winnings from casinos and their online partners surpassed a staggering $208 million in September 2023. This achievement marks the first time monthly internet gambling revenues have crossed the $200 million threshold, underscoring the growing significance of online gambling within the Atlantic City gaming landscape.
The Rise of Internet Gambling
The rise of online gambling in Atlantic City is indicative of a broader trend that has seen traditional casino revenues face challenges in the wake of the COVID-19 pandemic. While the $208 million figure demonstrates robust growth in digital revenues, it is essential to note that this amount is shared with various external stakeholders, including technology providers and online gaming platforms. As a result, while internet gambling has become an increasingly vital revenue stream, the physical casinos still regard revenue earned from in-person gaming as the cornerstone of their business.
Comparing Current Figures with Pre-Pandemic Performance
Despite the impressive spikes in internet gambling, many physical casinos in Atlantic City are still struggling to rebound to pre-pandemic performance levels. Statistically, five out of the nine casinos recorded lower in-person winnings in September 2023 compared to September 2019, a crucial pre-pandemic benchmark. Overall, casinos collectively generated an additional $6 million in in-person revenue compared to the same month in 2019, demonstrating that recovery remains uneven across the board.
Total Gaming Revenue on an Upward Trend
The combined impact of online gambling and sports betting pushed the total revenue for casinos, racetracks, and their partners to $558 million in September 2023, representing a 7.1% increase from the same period last year. James Plousis, chairman of the New Jersey Casino Control Commission, emphasized the ongoing success of internet gaming and its contributions to achieving the highest total gaming revenue figures for September in over a decade. For the third month in a row, total gaming revenues have surpassed the $500 million mark, a threshold only reached once in 2022.
Insights from Industry Experts
Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, emphasizes the mixed implications behind these numbers. While internet revenues continue to soar, they appear to overshadow the traditional brick-and-mortar gaming revenues, indicating a potential shift in consumer behavior and preferences. As of now, internet gaming comprises a substantial share of the overall revenue mix for operators — accounting for approximately 40.8% of total industry revenues in the first three quarters of the year.
Casino-Specific Performance Metrics
A breakdown of in-person winnings for the casinos reveals notable differences in performance. Borgata led the charge with $62.4 million in September, reflecting a 15% increase. In stark contrast, Ocean Casino experienced a dramatic decline of 28%, with in-person winnings dropping to $28.4 million. Other casinos, such as Hard Rock, Caesars, and Tropicana, also faced declines in their physical revenue streams, highlighting crucial areas of concern within the industry’s recovery trajectory.
When factoring in internet and sports betting revenue, the financial outlook for various casinos shifts significantly. Borgata’s total revenue surged to $120.2 million when considering online contributions, while Golden Nugget experienced a notable 25.8% increase, amounting to $72.8 million. The data paints a picture of resilience in some sectors, juxtaposed against the sagging fortunes of others.
Conclusion
Atlantic City’s gaming landscape is at a critical juncture, marked by the juxtaposition of flourishing online gambling revenues against the struggles of traditional casinos to regain their footing. As the industry navigates these transformations, the reliance on internet gambling becomes increasingly evident, shaping the future of how revenues are generated and where consumers prefer to place their bets. With the state of New Jersey paving the way for innovative gambling solutions, stakeholders and operators alike must adapt to this rapidly evolving environment to ensure sustainable growth and success in the coming years.
As the online and in-person gaming sectors continue to evolve, only time will tell how Atlantic City will balance its rich gaming heritage with the demands of modern technology and consumer preferences. As we move forward, one thing remains clear: the thrill of the game — whether played online or on the casino floor — is alive and well in Atlantic City.
