Atlantic City’s Internet Gambling Boom: A Record-Breaking September
Atlantic City, New Jersey, has once again proven its resilience and adaptability in the ever-evolving world of gambling. The state’s internet gambling market hit a remarkable milestone in September 2023, with combined winnings from the casinos and their online partners exceeding $208 million, marking the first time that monthly online gaming revenue has surpassed the $200 million threshold. This achievement not only showcases the burgeoning potential of online gambling but also raises questions about the future of traditional brick-and-mortar casinos in an increasingly digital landscape.
The Rising Tide of Internet Gambling
According to the New Jersey Division of Gaming Enforcement, this meteoric rise in internet winnings is partially responsible for lifting Atlantic City’s total gaming revenue to a remarkable $558 million in September, a notable 7.1% increase from the same month the previous year. This surge in revenue underscores the vital role that online gaming is now playing in the state’s gambling economy, especially as some physical casinos struggle to regain their pre-pandemic traction.
James Plousis, the chairman of the New Jersey Casino Control Commission, hailed the success of internet gaming, stating, “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.” This statement reflects a significant shift in consumer behavior, as many gamblers have embraced the convenience and accessibility of online platforms.
A Mixed Bag for Brick-and-Mortar Casinos
However, the success of online gaming comes with caveats. While total revenue exceeded levels seen before the COVID-19 pandemic in September 2019, not all casinos have shared equally in this resurgence. Five out of the nine casinos reported a decrease in in-person winnings compared to September 2019, suggesting that traditional gaming is still grappling with the long-term effects of the pandemic.
For instance, prominent casinos such as Ocean Casino and Tropicana have seen significant declines in their in-person revenue, with Ocean reporting a steep 28% drop to $28.4 million. Harrah’s and Caesars also faced challenges, registering declines of 16.3% and 4.1%, respectively. Conversely, Borgata has emerged as a frontrunner, winning $62.4 million in September, marking a 15% increase compared to the same period last year.
Online Gambling’s Growing Share of Revenue
The staggering figures from online gaming exemplify how crucial this sector has become for casino operators in Atlantic City. Jane Bokunewicz, the director of the Lloyd Levenson Institute at Stockton University, noted that internet gaming now constitutes a substantial 40.8% of total industry revenues for the first three quarters of the year. This figure highlights a shift in the revenue composition for the gambling sector, indicating that for many casinos, the future now lies partly in their digital operations.
Sports Betting: A Complementary Asset
In addition to online gambling, sports betting also contributed positively to the overall financial landscape, though it was eclipsed by the internet gaming boom. The combined revenue from both internet gambling and sports betting helped lift the casinos and racetracks to a total of nearly $1.1 billion in wagers, from which they retained $119.5 million. This additional income stream acts as a buffer for traditional casinos, though the extent to which it can revitalize their in-person offerings remains uncertain.
Looking Ahead: The Future of Atlantic City Gaming
As Atlantic City’s gambling industry continues to evolve, the gritty realities of competition—both online and offline—will likely shape its future. While internet gambling is experiencing historic growth, traditional casinos must navigate a shifting landscape where consumer preferences increasingly lean toward online experiences. The challenge will be to find a balance that allows both sectors to thrive.
With September 2023 marking a new chapter in the tale of Atlantic City’s gaming industry, stakeholders across the board will be watching closely to see how these trends unfold in the coming months. As digital engagement grows and public interest continues to shift, the casinos will need to adapt, creating new strategies to integrate online successes into their core business models to ensure a vibrant and sustainable future for gambling in New Jersey.
In conclusion, Atlantic City is at a crossroads, embodying both the promises of technological advancement and the challenges of maintaining the traditional casino experience. With online gaming carving out an ever-larger share of the market, the city’s economic landscape is poised for substantial change, one bet at a time.
