Atlantic City’s Internet Gambling Market Hits New Heights: A Closer Look
Introduction
Atlantic City, a longstanding icon of gambling in the United States, has once again made headlines by breaking records with its impressive internet gambling winnings. As reported by the New Jersey Division of Gaming Enforcement, September saw Atlantic City and its online partners rake in a staggering total of over $208 million. This achievement marks a significant milestone, as it’s the first time the monthly internet gambling winnings have crossed the $200 million threshold. But what does this mean for the region’s casinos, and how is the overall gambling landscape evolving?
The Rise of Internet Gambling
The emergence of online gambling has fundamentally transformed the gaming ecosystem in Atlantic City. With digital platforms gaining popularity, the state has witnessed an exponential increase in revenue from internet gambling, which has become a crucial component of the regional economy. September’s record-breaking figures underscore the increasing importance of this segment, particularly as many brick-and-mortar casinos struggle with fluctuating in-person revenues.
“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,” stated James Plousis, chairman of the New Jersey Casino Control Commission. This declaration reflects the adaptability of the industry in embracing technology and reaching a broader audience.
Shifting Dynamics in Casino Revenue
Despite the promising figures from online gambling, not all is rosy for traditional casinos. The revenue generated from in-person gambling remains vital, and many establishments are currently feeling the pinch when compared to pre-pandemic levels. A deeper examination of the numbers reveals that while the overall total revenue for September exceeded 2019 figures by $6 million, five out of the nine casinos reported lower in-person revenues than they did five years ago.
In-person revenues have become a mixed bag across different casinos. The Borgata emerged as the reigning leader for in-person winnings with $62.4 million, reflecting a robust 15% increase. Conversely, numerous establishments, including Ocean Resort and Tropicana, saw their revenues dip significantly—ranking in declines between 16% and 28%.
Internet Gambling and Overall Revenue Growth
The substantial boost from internet gambling, alongside a modest uptick from sports betting, contributed to an overall revenue of $558 million for the casinos and two racetracks. This figure represents a 7.1% increase from the previous year, illustrating that while physical gambling remains relevant, online platforms are increasingly pivotal to the industry’s success.
Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, noted that “September’s numbers were a mixed bag,” emphasizing that the soaring internet revenues felt detached from the fortunes of brick-and-mortar enterprises. With internet gaming contributing to 40.8% of the total revenue for the industry so far in 2023, it’s clear that the digital realm is not just a novelty; it’s central to the economic fabric of Atlantic City’s gambling sector.
Conclusion
Atlantic City is at a crossroads where its gambling market is undergoing a radical transformation. The record-breaking online gambling revenues signify not only a response to the evolving preferences of gamers but also set the stage for a more integrated approach to both online and physical gambling. While traditional casinos grapple with fluctuating in-person revenues, the growth of internet gambling presents new opportunities for innovation and outreach.
As the industry navigates this changing landscape, it will be crucial for casinos to harness the synergies between their physical venues and online platforms to foster a resilient and sustained growth trajectory. The future of Atlantic City’s gambling market will depend on its ability to adapt and thrive in a dual world of virtual and physical gaming experiences. Only time will tell how this dynamic will play out, but one thing is certain: the digital shift is here to stay.
