New Jersey iGaming Revenue Hits Record Highs Amid Changing Dynamics in Atlantic City
Posted on: October 17, 2024, 03:10h
Last updated on: October 17, 2024, 03:10h
In a remarkable demonstration of the growth trajectory of online gaming, New Jersey’s iGaming revenue soared to unprecedented heights in September 2024. The state garnered over $208.1 million from online slot and interactive table games, marking a historic milestone as it becomes the first U.S. state to surpass the $200 million mark in a single month for its online gaming sector.
Record-Breaking Revenue
According to the New Jersey Division of Gaming Enforcement, the gross gaming revenue (GGR) from online slots and table games amounted to an impressive $205.9 million in September, while rake from online poker games added an additional $2.2 million. This total not only highlights a robust performance for the state but also reflects a substantial year-over-year increase of 27%.
Despite the overall thriving online landscape, New Jersey isn’t alone in its success; only Michigan has previously crossed the $200 million threshold in monthly iGaming revenue, achieving $215.5 million in March 2024. This highlights New Jersey’s leading position in the online gaming sector, particularly as it competes with six other states that have legalized online casinos.
Growth Despite Challenges
James Plousis, chair of the New Jersey Casino Control Commission, remarked on the sustained strength of internet gaming, indicating that it has played a crucial role in elevating Atlantic City’s total gaming revenue to its highest September figure in over a decade. The overall gaming revenue for the state, including sports betting, reached $558.28 million in September, representing a year-over-year growth of approximately $36.8 million—an 8% increase in sports betting revenue alone.
Interestingly, these gains were primarily realized through online channels, contrasting sharply with the traditional casino landscape in Atlantic City.
Tide Turns in Atlantic City
After a successful August where Atlantic City casinos reported a nearly 5% increase in brick-and-mortar revenues, September saw a disheartening slowdown. According to the Division of Gaming Enforcement, retail casino revenue plummeted by 6.5% year over year, translating to a loss of roughly $15.9 million. Slot machine revenue was down by 5% to $173.3 million, and table games suffered a more significant hit, dropping over 10% to $57.3 million.
Several factors contributed to these declines: September 2024 had less favorable calendar conditions, including fewer weekends than in September 2023, alongside better-than-usual luck for table players. Nonetheless, Plousis maintains an optimistic outlook, noting that despite some downturns, the overall stability of Atlantic City’s gaming market through the first nine months of the year is commendable.
Disparities in Revenue Streams
Despite the cheerful assertions from regulatory bodies, many leaders in Atlantic City’s casino industry argue the positive iGaming figures do not reflect the realities of the local gaming market. Revenue from online gaming and sports betting primarily benefits large platforms like DraftKings and FanDuel, which have minimal physical presence or investment in Atlantic City itself.
Local operators emphasize the importance of physical gaming in understanding the health of the resort’s industry. As of now, in-person casino revenue has dipped nearly 1% to about $2.15 billion through the first three quarters of the year. Notably, five out of nine casinos—including Bally’s, Caesars, and Harrah’s—have reported lower earnings compared to the previous year.
While establishments like Borgata and Ocean show slight growth, Hard Rock has emerged as a frontrunner with an 8.3% increase in year-over-year GGR. This dynamic shift highlights the disparities within the market as varying casino strategies and customer preferences play out.
Conclusion
The landscape of gaming in New Jersey, particularly in Atlantic City, reflects a broader narrative of evolution within the industry. While iGaming continues to thrive and draw in remarkable revenue figures, the traditional gaming scene faces challenges that necessitate adaptations. As trends continue to unfold, stakeholders in both online and brick-and-mortar segments must navigate a complex environment aiming to enhance both revenue and customer experience. As Atlantic City seeks to reclaim its former allure, the relationship between digital and physical gaming will be essential to its resurgence.
