Atlantic City casino revenue on pace for worst year in two decades Updated Mar 30, 2019; Posted Jul 10, 2013 Casinos located at the north end of the Atlantic City Boardwalk in a 2010 file photo. In a normal year, a 23-percent drop in Atlantic City's year-to-year July gaming revenue would have been calamitous, to say the least. After all, 23 percent is an incredibly brutal amount for any month. For July—historically a peak time for AC casinos—it is unimaginable. ATLANTIC CITY, N.J. Atlantic City's nine casinos saw their collective gross operating profits increase by 12.5% in the third quarter of this year compared with the same period last year.
- Atlantic City Casino Revenue By Year Chart
- Atlantic City Casino Revenue By Year
- Atlantic City Gaming Revenue By Year
Atlantic City Casino Revenue By Year Chart
July marked the first month that casinos in Atlantic City reopened. Many had questions as to how much money these gambling venues would earn once they began accepting guests again. This week, reports on casino revenue in Atlantic City for the month of July finally surfaced.
It should come as no surprise that revenue here dropped. Today, we're going to look at exactly how much money these properties managed to bring in. We'll also talk about how revenue figures here may change as time goes on.
Let's get into it!
New Jersey's Casino Industry is Now Up and Running Again
There's no doubt that New Jersey has the biggest casino industry on the East Coast. Atlantic City has recovered since the economic recession in 2008 and is now home to some of the country's best casino-resorts. Back in March, however, all of the casinos here were forced to shut down.
This proved to be devastating to the local economy. A huge number of residents in this city rely on casinos in one way or another. The casino companies here also began to suffer and many feared they would be forced to permanently shut down.
That didn't prove to be the case. Governor Phil Murphy eventually gave these casinos permission to reopen over the Fourth of July weekend. The Borgata Hotel-Casino began operating again in late July, making it the final gambling venue in the city to open back up.
Intense safety measures are set inside all of these properties. Masks are required on the casino floor. Eating, drinking, and smoking are all prohibited. It seemed likely that visitation would drop with so many safety new rules set in place.
Casino revenue has been dropping around the country. That was particularly true over March, April, and May, when most casinos were closed. This week, we learned how much money Atlantic City's casinos managed to bring in during the month of July.
Here's where things stand.
Reports on Casino Revenue in Atlantic City Are Out!
Many had questions about how much money casinos in Atlantic City would make in July. Some had concerns that tourism rates would remain extremely low. Everyone knew that the casinos here would experience a dip in revenue earnings.
According to the New Jersey Division of Gaming Enforcement, casino revenue in Atlantic City dropped by 23% when compared to the same month in 2019. The casinos here managed to bring in just under $248.7 million last month. It's a significant decline from the $323.3 million made a year ago.
This is not very surprising. As we already mentioned, the Borgata Hotel-Casino was only operational for nine days last month. The regulations we mentioned have also led to a significant drop in tourism, which negatively impacts revenue.
Jane Bokunewicz, coordinator of the Lloyd D. Levenson Institute for Gaming, Hospitality and Tourism at Stockton University, believes the figures represent a win for New Jersey's casino industry.
'Even with public health precautions in place, there was great concern that patrons would not yet feel safe visiting the casinos in person, and there would be an extended ‘COVID drag' on the industry,' Bokunewicz said. 'Although total casino win for July was down, [the revenue report] shows that a significant number of gamblers were willing to play in person.'
Casino revenue figures likely won't return to normal for at least a year. As time goes on, casino companies will likely focus more on their online gambling operations. More states are also beginning to take a closer look at the legalization of sports betting.
More States Are Looking into Sports Betting Legislation
Back in mid-2018, the Supreme Court struck down PASPA. This immediately gave every state in the country the ability to legalize sports gambling. It's been more than two years, and 24 different states have legalized this form of gambling.
This is proving to be a hugely successful industry. Despite many sports being shut down for months, sports betting has been growing more popular. It's been an important source of revenue for many casino companies.
State leaders recognize the revenue potential from this industry. For a time, it seemed highly likely that Massachusetts would legalize this form of gambling this year. To the surprise of many, the Massachusetts State Senate rejected the bills to legalize this form of gambling.
The same can be said for California. Gambling proponents have presented several bills to allow sports betting here. Unfortunately, state officials failed to come to a deal with Native American tribes on how to offer sports betting options. It now appears the state's sports gambling plans will be delayed at least a year.
These delays won't last forever. Most feel that sports betting will become legal in almost every state within the next few years.
Are you surprised to see casino revenue in Atlantic City drop by so much? When do you expect these figures to return to normal? Let us know in the comments section below.
In an impressive 20-month streak, gaming revenue has been on the rise for Atlantic City casinos, with January being the seventh consecutive month of double-digit growth.
'2020 is off to a promising start for Atlantic City,' said Steve Callender, president of the Casino Association of New Jersey and senior vice president of Eastern regional operations for Tropicana Atlantic City's parent company, Eldorado Resorts. 'The city continues to see increased sports betting and tourism, two important economic drivers. I look forward to a year of continued progress in 2020.'
And all nine of the city's casinos are feeling the growth.
According to Ocean Casino Resort CEO Terry Glebocki, their slot revenues were especially impressive, increasing a whopping 87% since last January. Glebocki says they will continue investing in their property with the addition of the new high limit slot parlor, Asian gaming salon, and VIP lounge.
Atlantic City Casino Revenue By Year
Atlantic City's newest properties, Hard Rock Hotel & Casino Atlantic City and Ocean Casino Resort, are to thank for much of the city's booming revenue increase. They ranked third and sixth in the market in their total revenue from tables and slots. That's a 36% increase compared with 2019's levels. Altogether, the city saw their tables and slots revenue go up 8.3%.
According to data released Wednesday by the state Division of Gaming Enforcement, casinos reported a total gaming revenue of $270.5 million last month. That's a 22.6% increase, or $50 million, from last January.
James Plousis, Casino Control Commission Chairman, said 'revenue from slots, table games, internet waging, and sports wagering all grew.' Adding that:
'Internet and sports wagering did particularly well, bolstering the industry's performance in the middle of the traditional offseason.'
Online Revenue is Booming
In a series of firsts, Internet gaming revenue passed the $55 million mark in January. There has been a 64% increase in revenue last year, which is over a $21 million jump.
Of that $55 million, close to half of that amount came from Golden Nugget alone, with them dominating $21.2 million of the online gaming pie.
Exciting even still, is that, according to industry experts, online casino gaming has yet to hit its 'sweet spot' in the state.
According to Eric Ramsey, gaming analyst for PlayNJ.com, if current revenue patterns continue, hitting $700 million is 'within reach in 2020, which would have been inconceivable just a few years ago.'
Sports Betting is Largely to Thank
'The industry's ability to find new areas of growth, along with the symbiotic relationship that exists with online sports betting, will keep online casino gambling moving forward,' Ramsey said.
It's no secret. Sports betting is huge money in the world of wagering, and Atlantic City is cashing in on it. The city's sports betting revenues are up 139.9%, resulting in a $23.4 million increase in revenue for the city's casinos and their online/mobile partners.
Atlantic City Gaming Revenue By Year
'Even with public health precautions in place, there was great concern that patrons would not yet feel safe visiting the casinos in person, and there would be an extended ‘COVID drag' on the industry,' Bokunewicz said. 'Although total casino win for July was down, [the revenue report] shows that a significant number of gamblers were willing to play in person.'
Casino revenue figures likely won't return to normal for at least a year. As time goes on, casino companies will likely focus more on their online gambling operations. More states are also beginning to take a closer look at the legalization of sports betting.
More States Are Looking into Sports Betting Legislation
Back in mid-2018, the Supreme Court struck down PASPA. This immediately gave every state in the country the ability to legalize sports gambling. It's been more than two years, and 24 different states have legalized this form of gambling.
This is proving to be a hugely successful industry. Despite many sports being shut down for months, sports betting has been growing more popular. It's been an important source of revenue for many casino companies.
State leaders recognize the revenue potential from this industry. For a time, it seemed highly likely that Massachusetts would legalize this form of gambling this year. To the surprise of many, the Massachusetts State Senate rejected the bills to legalize this form of gambling.
The same can be said for California. Gambling proponents have presented several bills to allow sports betting here. Unfortunately, state officials failed to come to a deal with Native American tribes on how to offer sports betting options. It now appears the state's sports gambling plans will be delayed at least a year.
These delays won't last forever. Most feel that sports betting will become legal in almost every state within the next few years.
Are you surprised to see casino revenue in Atlantic City drop by so much? When do you expect these figures to return to normal? Let us know in the comments section below.
In an impressive 20-month streak, gaming revenue has been on the rise for Atlantic City casinos, with January being the seventh consecutive month of double-digit growth.
'2020 is off to a promising start for Atlantic City,' said Steve Callender, president of the Casino Association of New Jersey and senior vice president of Eastern regional operations for Tropicana Atlantic City's parent company, Eldorado Resorts. 'The city continues to see increased sports betting and tourism, two important economic drivers. I look forward to a year of continued progress in 2020.'
And all nine of the city's casinos are feeling the growth.
According to Ocean Casino Resort CEO Terry Glebocki, their slot revenues were especially impressive, increasing a whopping 87% since last January. Glebocki says they will continue investing in their property with the addition of the new high limit slot parlor, Asian gaming salon, and VIP lounge.
Atlantic City Casino Revenue By Year
Atlantic City's newest properties, Hard Rock Hotel & Casino Atlantic City and Ocean Casino Resort, are to thank for much of the city's booming revenue increase. They ranked third and sixth in the market in their total revenue from tables and slots. That's a 36% increase compared with 2019's levels. Altogether, the city saw their tables and slots revenue go up 8.3%.
According to data released Wednesday by the state Division of Gaming Enforcement, casinos reported a total gaming revenue of $270.5 million last month. That's a 22.6% increase, or $50 million, from last January.
James Plousis, Casino Control Commission Chairman, said 'revenue from slots, table games, internet waging, and sports wagering all grew.' Adding that:
'Internet and sports wagering did particularly well, bolstering the industry's performance in the middle of the traditional offseason.'
Online Revenue is Booming
In a series of firsts, Internet gaming revenue passed the $55 million mark in January. There has been a 64% increase in revenue last year, which is over a $21 million jump.
Of that $55 million, close to half of that amount came from Golden Nugget alone, with them dominating $21.2 million of the online gaming pie.
Exciting even still, is that, according to industry experts, online casino gaming has yet to hit its 'sweet spot' in the state.
According to Eric Ramsey, gaming analyst for PlayNJ.com, if current revenue patterns continue, hitting $700 million is 'within reach in 2020, which would have been inconceivable just a few years ago.'
Sports Betting is Largely to Thank
'The industry's ability to find new areas of growth, along with the symbiotic relationship that exists with online sports betting, will keep online casino gambling moving forward,' Ramsey said.
It's no secret. Sports betting is huge money in the world of wagering, and Atlantic City is cashing in on it. The city's sports betting revenues are up 139.9%, resulting in a $23.4 million increase in revenue for the city's casinos and their online/mobile partners.
Atlantic City Gaming Revenue By Year
Sports wagering even brings in gamblers who end up staying for additional gaming experiences. According to Plousis:
'Guests who came to wager on sports events took the opportunity to explore Atlantic City's abundant gaming and non-gaming option. Casino executives I've spoken with were very pleased that customers stayed longer to enjoy the city's diverse dining and entertainment offerings. Making investments that lead to positive customer experiences can provide strong competitive advantage for Atlantic City.'
New Jersey Could Possibly Out-Rank Nevada
That numbers for last month saw $540 million legally wagered on sports, thanks to the wide variety of highly-anticipated, annual NFL sporting events going on at the time, including the NFL playoffs and college football championship games.
With the current trajectory of gaming earnings in the state, betting experts believe that New Jersey won't only go toe-to-toe with Nevada, the nation's top-earning gambling state, but that it will surpass it in time. While January saw New Jersey earn over $500 million in revenue, Nevada, which earned $497.5 million in January 2019, has yet to surpass the $500 million mark.
'New Jersey could very well top Nevada, not just in January, but for the foreseeable future,' said Dustin Gouker, another lead analyst for PlayNJ.com. 'And assuming that happens, we could be seeing the beginning of New Jersey's more permanent place as the top market in the country.'
