Atlantic City’s Gambling Boom: Record Internet Revenues in September
Atlantic City, New Jersey, has once again made headlines as its internet gambling market shattered previous records in September 2023. The state Division of Gaming Enforcement reported that the casinos, alongside their online partners, grossed over $208 million in internet gambling winnings for the month. This milestone marks the first time the monthly internet gambling revenue has exceeded the $200 million threshold, highlighting not just the popularity of online gaming, but also its growing significance within New Jersey’s gaming economy.
The Rise of Online Gambling
As states across the U.S. have gradually embraced legalized online gambling, the numbers from Atlantic City reflect a significant shift in consumer behavior and preferences. The growing online gambling market plays a crucial role in the financial stability of the region’s casinos. While traditional brick-and-mortar operations have faced challenges in recent years—especially as the industry grapples with the lingering impacts of the COVID-19 pandemic—the digital counterpart continues to thrive.
Notably, while the total gaming revenue for Atlantic City surpassed $500 million for the third consecutive month, the contribution of online gaming to this figure was undeniable. James Plousis, chairman of the New Jersey Casino Control Commission, emphasized the importance of internet gaming, stating that it has propelled Atlantic City’s total gaming revenue to its highest figures in more than a decade.
A Complicated Reality for Brick-and-Mortar Casinos
Despite the remarkable growth in online gambling, the performance of physical casinos in Atlantic City presents a more mixed picture. Although the overall casino revenues showed a marginal increase of $6 million compared to September 2019, five out of the nine casinos reported lower in-person winnings than in the same month five years ago. This reveals a concerning trend; while online gambling is booming, physical establishments still struggle to fully recover from the pandemic’s detrimental impact.
The ongoing disparity has left many casino operators in a precarious position. While they celebrate the increased revenue from online gaming, the diminishing in-person attendance diminishes the overall revenue stream that traditionally bolstered their businesses.
Insights from Industry Experts
The complexities surrounding Atlantic City’s gaming market have not gone unnoticed by industry analysts. Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University—a key institution dedicated to studying this sector—described September’s performance as "a mixed bag." The soaring revenues from internet gaming have not translated as effectively to brick-and-mortar gaming, creating a narrative of disparity within the industry.
Bokunewicz pointed out that internet gaming represented a staggering 40.8% of the total revenue for the industry in the first three quarters of 2023, showcasing its critical role in the casino ecosystem. This dramatic shift indicates a new norm for the gambling landscape in Atlantic City, where digital platforms and offerings are becoming increasingly essential for survival.
Casino Earnings Breakdown
When reviewing individual performances among the casinos, the results were varied. The Borgata led the pack in in-person winnings, bringing in $62.4 million in September, an impressive increase of 15% year-over-year. In contrast, several other properties showcased declines, with Ocean Casino seeing a significant drop of 28%.
Interestingly, when incorporating online and sports betting revenue, Borgata’s total rose to $120.2 million, a 12% increase compared to the previous year. Other establishments like the Golden Nugget saw their total soar by 25.8%, demonstrating that while in-person gaming may be dipping for some, online offerings are lifting profits elsewhere.
The Future of Atlantic City Gambling
The remarkable figures reported in September 2023 suggest that, although traditional casinos face challenges, online gambling provides a critical lifeline in a rapidly changing landscape. As the market continues to evolve, the success of internet gaming may reshape the future of gambling in Atlantic City.
With consumers increasingly turning to the convenience and accessibility of online platforms, operators will need to adapt strategically to meet these shifting preferences. Balancing online services with the physical gaming experience will be essential in ensuring longevity and growth within this storied gaming destination.
In conclusion, September 2023 not only marked a record-breaking month for internet gambling in New Jersey but also served as a reminder of the complex dynamics shaping Atlantic City’s gaming landscape. As both online and offline gaming continue to evolve, stakeholders must collaborate to navigate these challenging yet promising waters.
