Atlantic City’s Online Gambling Surge: A Record-Breaking September
Atlantic City, New Jersey, known for its vibrant boardwalk and world-class casinos, achieved a remarkable milestone in September 2023, setting a new benchmark in its booming online gambling sector. The city’s casinos and their online partners amassed over $208 million in internet gambling winnings, marking the first time that monthly totals surpassed the $200 million mark. This significant milestone not only highlights the exponential growth of the online gambling market but also reflects the changing dynamics of traditional casino operations.
The Growth of Online Gambling
Data released by the New Jersey Division of Gaming Enforcement reveals a bullish trend in online gambling. September marked the culmination of a series of gains for the online sector, which has become increasingly vital for the city’s financial health amid declines in brick-and-mortar revenue. With many physical casinos struggling to recoup losses from the COVID-19 pandemic, the success of online gaming is proving to be a lifeline.
For context, while Atlantic City’s casinos combined exceeded their in-person revenue totals from September 2019 by $6 million, a troubling five out of nine casinos reported lower earnings compared to five years ago. This juxtaposition underscores a growing reliance on digital platforms to drive revenue in a market still deeply affected by the pandemic’s aftereffects.
A Mixed Bag for Traditional Casinos
While the overall revenue figures for Atlantic City appear promising, they tell a more nuanced story when dissected by individual casinos. The in-person gaming revenue remains a mixed bag, with some casinos flourishing while others falter. For instance, Borgata reported an impressive $62.4 million in September, marking a 15% increase compared to the previous year. Conversely, Ocean Casino faced a steep 28% decline, highlighting the disparities within the industry.
The broader landscape paints a picture of uneven recovery. Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, emphasizes this dichotomy, describing the September numbers as “a mixed bag.” As internet gaming revenues soar, traditional gaming venues are left grappling with stagnation or losses in patronage.
The Bigger Picture: Total Revenue Trends
Despite the mixed results among individual casinos, the combined revenue from casinos, two racetracks that accept sports bets, and their online partners reached an impressive $558 million in September, representing a 7.1% increase year-over-year. This substantial uptick can be attributed to both the flourishing online gaming sector and a slight advantage from sports betting.
James Plousis, chairman of the New Jersey Casino Control Commission, noted, “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 achievement is particularly noteworthy as it marks the third consecutive month of total gaming revenue surpassing $500 million.
The Continued Importance of Internet Gaming
As of September, internet gaming represents a formidable 40.8% of total revenue for Atlantic City operators through the first three quarters of the year. This percentage reflects the seismic shift in how patrons engage with gambling in the age of technology. More players are opting for the convenience and safety of online platforms, a trend that appears to be reshaping the future of the gaming industry in Atlantic City.
Looking Ahead: Challenges and Opportunities
As Atlantic City navigates the complexities of its evolving gambling landscape, the need for traditional casinos to adapt becomes increasingly clear. While online gaming continues to be a robust revenue stream, casinos must also orchestrate strategies to regain their in-person clientele. The challenge lies in balancing these two modalities to ensure sustained growth and profitability.
As the industry evolves, more attention will be focused on how both online and in-person operations can coexist and thrive. This duality may define the future of Atlantic City’s storied casinos, offering new opportunities for innovation and player engagement.
Conclusion
The record-breaking revenue reported in September 2023 is a testament to the dynamism of Atlantic City’s gambling market. While online gambling fuels growth, it also presents challenges for traditional venues that must adapt to survive. As the city continues to navigate this changing landscape, the interplay between digital and physical venues will shape the future of gambling in Atlantic City, and potentially, across the nation.
As the industry evolves, stakeholders will likely seek ways to harmonize these diverging revenue streams, ensuring that Atlantic City remains a premier destination for gaming enthusiasts for years to come.
