Atlantic City’s Internet Gambling Market Sets New Records
Atlantic City, New Jersey, is witnessing a significant evolution in its gambling landscape, with the online segment reaching unprecedented heights. According to the latest report from the New Jersey Division of Gaming Enforcement, September 2023 marked a historic peak for internet gambling in the state, as combined winnings soared past the remarkable threshold of $208 million. This milestone not only underscores the burgeoning popularity of online gambling but also highlights the shifting nature of revenue streams for the city’s traditional casinos.
The Surge in Online Gambling Revenue
For the first time, online gambling winnings collectively surpassed the $200 million mark in a single month. This extraordinary growth emphasizes the increasing significance of digital platforms in the gambling ecosystem of New Jersey. As in-person gambling in many casinos continues to lag behind pre-pandemic levels, it becomes clear that online gaming is emerging as a vital lifeline for Atlantic City’s gaming industry.
The casino operators have recognized that these online revenues, while impressive, must be divided among various stakeholders, including technical service providers. As such, they continue to prioritize revenue generated from in-person gambling, viewing it as their core business. Despite the growth in online gaming, the physical casino floors are still essential to the overall experience and financial plans of these establishments.
Uneven Progress on the Casino Floor
While the internet gaming surge has helped exceed the in-person revenue totals from September 2019 by $6 million, five of the nine casinos reported lower in-person winnings compared to five years ago. This uneven progress highlights a crucial dilemma facing Atlantic City. The recovery from the COVID-19 pandemic has proven inconsistent, leading to challenges for many casinos trying to recapture their former glory.
Nevertheless, the total revenue for Atlantic City’s casinos, which includes earnings from internet gambling and sports betting, rose to an impressive $558 million last month—a 7.1% increase compared to the previous year. This upward trend is a positive sign for the industry, showcasing its ability to adapt in a shifting landscape.
Expert Insights: A Mixed Bag for Atlantic City
James Plousis, chairman of the New Jersey Casino Control Commission, commented on the robust performance of internet gaming, stating that it has significantly bolstered Atlantic City’s overall gaming revenue. He emphasized that this consistent revenue growth, surpassing the $500 million mark for three consecutive months, signifies a positive trajectory for the gambling market in the region.
Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, has analyzed this mixed bag of results, noting that, while online revenues have soared, they seem to overshadow the brick-and-mortar gaming sector. Internet gaming accounted for a substantial 40.8% of total revenue for the industry through the year’s first three quarters, highlighting a significant shift in consumer behavior.
Casino Performance Breakdown
Analyzing the performance of individual casinos reveals a varied picture. The Borgata took the lead for in-person winnings, generating $62.4 million in September, which represented a commendable 15% increase. Conversely, other casinos struggled; for example, the Ocean Casino Resort witnessed a decline of 28%, and Harrah’s saw a drop of 16.3%. When internet and sports betting revenue is accounted for, the Borgata continues to dominate, reporting a total of $120.2 million, while Golden Nugget experienced a notable 25.8% increase, further contributing to the mixed landscape.
In total, the casinos and horse tracks that accept sports bets retained $119.5 million in revenue from nearly $1.1 billion wagered, evidencing the increasing engagement from both online and in-person players.
Conclusion: The Future of Gambling in Atlantic City
As Atlantic City navigates this evolving gambling narrative, the rise of internet gambling represents both an opportunity and a challenge. While it offers a significant revenue boost, the dramatic differences between online and traditional casino performance must be addressed. The potential of the online market is undeniable, but it also necessitates a reevaluation of business strategies among the city’s physical casinos.
The coming months will reveal how Atlantic City continues to adapt in this new era of gambling, balancing the benefits of online gaming with the essential experiences that brick-and-mortar establishments offer. As operators adjust to this dynamic environment, it will be crucial to ensure that both sectors thrive in unison, securing Atlantic City’s position as a leading gaming destination for the future.
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