The New Jersey gambling industry has seen many ups and downs over the years and the fluctuation continues. Overall gambling revenue is up in the state, however, there has been a 2% win fall. In-person gambling is still extremely popular in New Jersey, with thousands visiting Atlantic City casinos. Since online gambling has been legal in the state, it has accounted for massive amounts of revenue.
Based on the figures for May 2023, internet gaming wins that have been posted by NJ casino sites like these showed an 18.7% increase over the previous year. This information comes directly from the Division of Gaming Enforcement. Sports betting has also been a great revenue generator for New Jersey. Bets placed on sports at online websites, casinos, and racetracks increased by more than 33%. Despite the increase in revenue, slot and table game wins in the land casinos located in Atlantic City were 2% short compared to what they were a year ago.
With so many people turning to online websites for gambling needs, the amount of money won at Atlantic City casinos has been declining. In April, it fell by 1.6% and that number rose to 2% in May. The growth in online casinos and sportsbooks has allowed the total gaming revenue to continue to increase despite the in-person win fall. In terms of the money that has been won at land casinos, there have been some alarming decreases. Here, you can look at the totals for April 2023 of the nine casinos:
- Bally’s – Won $13.8 million, down 4.3%
- Borgata – Won $58.1 million, down 5.7%
- Caesars – Won $19.6 million, down 2.7%
- Golden Nugget – Won $13.1 million, up 6.6%
- Hard Rock – Won $38.8 million, down 4.4%
- Harrah’s – Won $21.8 million, down 5.7%
- Ocean – Won $34.2 million, up over 30%
- Resorts – Won $12.4 million, down 13%
- Tropicana – Won $19.5 million, down 13%
Both April and May showed decreases in in-person play and payouts compared with the numbers in the previous year.
Internet Gaming Keeps the Revenue Coming
Even though there has been a decrease in wins for in-person play at Atlantic City casinos, the online casino platforms have made up for these declines. The DGE stated that online table games and slot games won over $159 million in May. Fees from internet poker added another $2.3 million. With a May total of $161.4 million, this showed a huge 18.7% surge from the year before. As players continue to access online platforms, they help casinos generate the revenue that is being lost at the land venue.
Across the state, online sports betting and casino gambling continue to grow. All Atlantic City operators are required to report all revenue generated from online betting but are only allowed to keep a portion of that money. A percentage is paid to third-party providers.
Land Casinos Still Struggle
After the pandemic, venues in Atlantic City have still not recovered and the national economy is not helping matters. With the upcoming tourism season, operators are hopeful that more players will walk through the doors and enjoy the experience at some of the best casinos in the USA. Operators continue to manage customer demand, but the labor shortage and the higher cost for employees still present a problem and will impact the revenue/expense balance.
With just 2 land casinos reporting an increase in revenue, the overall industry is falling short. To help with the loss of in-person revenue, casinos are making improvements to attract players and visitors to resorts. Casino floors are being redesigned, hotel amenities added, and special perks for high rollers are being introduced. These are all in an effort to overcome the declines and get the land-casino industry back on track.
Unfortunately, it does not appear to be enough. Luckily, Atlantic City can rely on the revenue generated from online sports betting and casino gaming for at least another 5 years. The state proposed an extension of 10 years, but lawmakers shot that down and have proposed a five-year extension. Will this be enough to keep Atlantic City casinos afloat? Only time will tell. Operators are hopeful that in-person gambling during the upcoming summer months will increase and help offset the declines experienced in previous months.
