New Jersey’s gaming industry experienced a mixed performance in July 2024, with Atlantic City’s brick-and-mortar casinos reporting a decline in revenue. Despite the overall growth in total gaming revenue, the traditional casino sector faced challenges, highlighting the shifting dynamics within the industry. The New Jersey Division of Gaming Enforcement revealed that the gross gaming revenue (GGR) for brick-and-mortar casinos in Atlantic City amounted to $272.3 million, marking a 6.1% decline from July 2023. This decline underscores the ongoing competition between physical casinos and the growing popularity of online gaming platforms.
Decline in Brick-and-Mortar Casino Revenue
The decline in revenue for Atlantic City’s brick-and-mortar casinos is a cause for concern within the industry. The GGR for these casinos fell by 6.1% year-on-year, dropping from $290.0 million in July 2023 to $272.3 million in July 2024. This decrease highlights the challenges faced by traditional casinos as they compete with the convenience and accessibility of online gaming options. The decline in revenue was observed across various segments, with slot wins falling by almost 5% to $207.3 million and table games revenue plunging by 10% to roughly $65 million.
Among the nine casinos in Atlantic City, only three reported year-over-year gaming win increases in July. Hard Rock led the positive trend with $54.6 million, up by 3%, followed by Resorts with $15.5 million (a 1.9% increase) and Golden Nugget with $14.1 million (a 0.7% increase). However, the market leader Borgata experienced a more than 3% drop in in-person GGR, settling at $75.9 million. Other casinos, including Ocean Casino, Tropicana, Caesars, Harrah’s, and Bally’s, also reported declines in revenue, further emphasizing the challenges faced by the brick-and-mortar sector.
Impact of Online Gaming and Sports Betting
Despite the decline in brick-and-mortar casino revenue, the overall gaming industry in New Jersey saw positive growth, driven by the strong performance of online gaming and sports betting. Internet gaming win for July 2024 reached $195.4 million, reflecting a robust 25.9% increase compared to $155.2 million in July 2023. Year-to-date, internet gaming has generated $1.33 billion, up 22.0% from the previous year. Sports wagering also contributed significantly to the industry’s growth, with gross revenue for July 2024 hitting $80.0 million, a 31.2% increase from $61.0 million in July 2023.
The success of online gaming and sports betting has provided a much-needed boost to the overall gaming revenue in New Jersey. Tethered to the nine Atlantic City casinos through third-party operators, iGaming websites and apps won nearly $195.4 million from remote players, marking a 26% increase from July 2023. Additionally, sports betting, encompassing retail wagering at physical sportsbooks, three horse racetracks, and online platforms, amassed $80 million, a 31% surge from the previous year. These gains have helped offset the decline in brick-and-mortar casino revenue, propelling statewide GGR into the positive.
Future Outlook for Atlantic City’s Casinos
Looking ahead, the future outlook for Atlantic City’s brick-and-mortar casinos remains uncertain. The decline in revenue for traditional casinos highlights the need for the industry to adapt to changing consumer preferences and the growing popularity of online gaming options. James Plousis, chair of the New Jersey Casino Control Commission, emphasized that the state’s overall gaming industry remains robust despite the challenges faced by brick-and-mortar establishments. He attributed the drop in in-person revenue partially to a calendar with fewer weekend days in July.
As the industry continues to evolve, it will be crucial for Atlantic City’s casinos to explore new strategies to attract and retain customers. This may include enhancing the overall gaming experience, offering unique promotions, and leveraging technology to provide a seamless and engaging experience for players. Additionally, the continued growth of online gaming and sports betting presents opportunities for traditional casinos to expand their digital offerings and tap into new revenue streams.
