Atlantic City’s Internet Gambling Boom: A Record-Breaking September
Introduction
The internet gambling market in New Jersey has reached a significant milestone, as Atlantic City’s casinos and their partners achieved a record-breaking win of over $208 million in September. This impressive figure highlights the growing prominence of online gambling amid fluctuating revenues from traditional, in-person casino operations. This article delves into the latest statistics, trends, and implications for Atlantic City’s gaming industry.
A New Record Set in September
According to figures released by the New Jersey Division of Gaming Enforcement, September marked a pivotal moment for the state’s gambling market as it surpassed the $200 million threshold in monthly internet gambling winnings for the first time. This record not only underscores the rapid expansion of online gaming platforms but also signifies a critical turning point for Atlantic City’s casinos, which are witnessing diminishing returns from in-person gambling, a trend exacerbated by the COVID-19 pandemic.
The Importance of Online Gambling
While the spike in online gambling revenue is noteworthy, it’s important to recognize that the winnings are not solely confined to the casinos. Many of these funds must be shared with external partners, such as technology providers and online gaming platforms. Consequently, brick-and-mortar casinos still regard revenues generated from traditional in-person gambling as the cornerstone of their business.
Mixed Results on Casino Floors
Despite the surge in online gaming, in-person revenues are recovering at an uneven pace. Last month, the casinos collectively reported $6 million more in in-person revenue compared to September 2019, but five out of nine casinos are still generating lower revenues from their gaming floors than they did before the pandemic. This presents a challenging landscape for Atlantic City’s casinos, as they navigate a post-pandemic recovery.
Total Revenue Insights
The rise in online gambling, alongside a modest boost from sports betting, pushed total revenue for casinos—and for the two racetracks that take sports bets— to an impressive $558 million in September. This marked a 7.1% increase compared to the previous year. James Plousis, chairman of the New Jersey Casino Control Commission, commented on this achievement, noting that it represents the highest figure for September in over a decade. Notably, total gaming revenue has surpassed $500 million for three consecutive months, a clear indicator of a resilient market recovering from the pandemic’s effects.
Expert Insights: A Mixed Bag
Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, provided further analysis, describing September’s performance as “a mixed bag.” While online revenues soared, traditional gaming’s contributions appeared to stagnate. She highlighted that year-to-date, internet gaming contributes a significant 40.8% of total revenue for Atlantic City operators, demonstrating the shifting dynamics of the industry.
Casino Performance Breakdown
In terms of individual casino performance, Borgata emerged as a strong player, winning $62.4 million in September—an increase of 15%. Conversely, several other casinos reported declines. Hard Rock’s winnings dropped by 4.7% to $44.6 million, while Ocean Casino faced a staggering 28% decrease, bringing its total to $28.4 million. Other casinos, including Tropicana and Harrah’s, also saw declines ranging from 16% to over 4%.
When considering internet and sports betting revenue, Borgata led once again with $120.2 million, up 12%, while Golden Nugget reported a notable 25.8% increase, bringing its winnings to $72.8 million. These figures signal the vital role that internet and sports betting revenues are playing in the financial health of operating casinos.
Conclusion
The record-breaking revenue from Atlantic City’s internet gambling sector is a testament to the evolving landscape of the gaming industry. While online platforms are flourishing and continue to attract significant financial contributions, the traditional brick-and-mortar casinos are still grappling with recovery challenges. As the industry transforms, adapting to these changes will be essential for sustaining growth and maintaining competitive edge in the ever-evolving market of gambling. As Atlantic City navigates this new era, stakeholders will need to balance the benefits of online and in-person gaming to ensure a prosperous future for all entities involved.
For continuous updates and insights on the gambling landscape in Atlantic City, follow Wayne Parry on X at www.twitter.com/WayneParryAC.
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