Atlantic City’s Gambling Industry Shatters Records with Continued Online Growth
ATLANTIC CITY, N.J. – New Jersey’s burgeoning internet gambling market has once again proven its significance, achieving a staggering milestone in September. The state’s casinos and their technology partners reported over $208 million in internet gambling winnings, marking the first time the monthly total has exceeded the $200 million mark. This remarkable achievement underscores the growing importance of online gaming in Atlantic City, particularly as the physical casino revenues struggle to reach pre-pandemic levels.
A New Era for Internet Gambling
The figures released by New Jersey’s Division of Gaming Enforcement indicate a clear shift in the landscape of gambling within the region. The internet gaming results highlight the resilience and adaptability of Atlantic City’s gambling industry. However, it is crucial to note that while this pool of winnings is significant, it is not solely pocketed by the casinos; a portion is shared with external technical partners and providers. This dynamic has led casinos to focus heavily on in-person gaming, which they still deem the backbone of their business model.
In-Person Revenue Challenges
Despite the record-breaking numbers for online gaming, the in-person revenue for many casinos shows a mixed picture. Although the overall in-person revenue rose by $6 million compared to September 2019, five out of the nine casinos reported lower takings than they did five years ago, long before the disruptions caused by the COVID-19 pandemic. This divergence highlights the uneven recovery trajectory within the industry.
The latest revenue figures reveal a stark contrast; even as brick-and-mortar revenues lag, the internet gaming sector continues to thrive. "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," said James Plousis, chairman of the New Jersey Casino Control Commission. This trend paints a complex picture of the state of gambling in Atlantic City, where traditional practices are increasingly being overshadowed by online innovations.
Year-to-Date Perspectives
Year-to-date statistics reinforce the ascendancy of internet gaming, which has been responsible for 40.8% of the total revenue for the industry through the first three quarters of the year. Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, emphasized that these numbers reflect a mixed bag of results, with soaring internet revenues that seem to indicate a departure from brick-and-mortar gaming success.
Breaking Down the Numbers
In examining the detailed figures for September, it is clear that certain casinos excelled while others floundered. The Borgata led the pack with in-person earnings of $62.4 million, marking a 15% increase. Conversely, Ocean Casino faced a notable decline, winning just $28.4 million, down 28% from the previous year. The Hard Rock, Caesars, and Harrah’s also reported declines, reinforcing the uneven recovery of physical casino operations.
However, when factoring in online and sports betting revenue, Borgata’s total revenue surged to $120.2 million, a 12% increase overall. Meanwhile, Golden Nugget saw a remarkable 25.8% increase in its combined revenue, signaling potential growth sectors even amid traditional losses.
The Bigger Picture
The total revenue from the casinos and horse racing tracks that accept sports bets reached $558 million in September—a 7.1% increase compared to the prior year. This collective figure, bolstered significantly by internet gambling, highlights both the potential and the challenges faced by Atlantic City’s gaming market as it evolves. With gross revenues keeping $119.5 million from nearly $1.1 billion wagered, the industry’s foundations seem to be undergoing a seismic shift.
Conclusion
As Atlantic City navigates this transitional phase in its gambling industry, the juxtaposition of thriving online gaming revenues against struggling in-person operations will likely shape its future trajectory. While the internet gambling sector continues to break records, traditional casinos must adapt to the changing landscape. The story of Atlantic City is not just about the numbers; it’s about understanding how they fit into a larger narrative of resilience, adaptation, and ongoing change in the world of gaming. As the state and its casinos look ahead, the lessons learned may guide strategies in the foreseeable future, ensuring they remain pertinent in an ever-evolving industry.
For continued updates on the exciting developments within Atlantic City’s gambling market, follow Wayne Parry on X at www.twitter.com/WayneParryAC.
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