Atlantic City’s Internet Gambling Surge: A Record-Breaking September
Introduction
In a remarkable display of growth, the internet gambling sector in New Jersey has set a new benchmark, generating over $208 million in winnings in September 2023. This achievement not only highlights the increasing popularity and significance of online gambling in Atlantic City but also raises questions about its impact on traditional brick-and-mortar casinos. With internet revenue eclipsing the $200 million mark for the first time, the landscape of gambling in the region is shifting right before our eyes.
The Rise of Online Gambling
The latest figures released by the New Jersey Division of Gaming Enforcement reveal that the state’s internet gambling activities are rapidly expanding. The $208 million win from online platforms underscores the mounting importance of digital casinos as physical establishments struggle to regain their pre-pandemic momentum. Notably, while internet-based revenues soared, many physical casinos reported slower recovery compared to their earnings during the pre-COVID era.
A Closer Look at Physical Casino Revenues
Despite the impressive overall figures, the reality on the ground tells a different story. While Atlantic City casinos collectively surpassed their September 2019 revenue totals by $6 million, five out of the nine casinos reported lower in-person revenue compared to five years ago. This inequality underscores a crucial point: while online gambling emerges as a major revenue source, physical casinos remain integral to Atlantic City’s identity and revenue streams, especially since the profits from online gaming must be shared with outside technology partners.
A Boon for Total Gaming Revenue
The explosion in online gambling, along with a rise in sports betting, resulted in a total gaming revenue of approximately $558 million for the month. This figure marked a 7.1% increase from the previous year and represented the highest monthly gaming revenue for September in over a decade. James Plousis, chairman of the New Jersey Casino Control Commission, noted that this sustained growth is vital, as total gaming revenue has now surpassed the $500 million mark for three consecutive months.
Mixed Results for Individual Casinos
Despite the overall positive trend in gaming revenue, individual performances varied significantly among the casinos. The Borgata Hotel Casino & Spa took the lead with $62.4 million in in-person winnings — a 15% increase from the previous year. In contrast, other prominent casinos like Ocean Casino Resort and Caesars saw declines of 28% and 4.1%, respectively. Interestingly, when factoring in online and sports betting revenues, the Borgata’s total winnings climbed to a remarkable $120.2 million, showcasing its dominance in the gaming landscape.
The Role of Internet Gaming in the Future
As noted by Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, internet gaming has become a crucial component of the Atlantic City operators’ revenue mix. In the first three quarters of 2023, internet gaming accounted for a substantial 40.8% of total industry revenue. This statistic underlines the undeniable shift towards online platforms, raising the question of the future of traditional casinos in a market increasingly reliant on digital solutions.
Conclusion
As Atlantic City navigates the evolving landscape of gambling, the record-breaking online gaming revenues offer a glimpse into a future where the digital sphere may dominate the industry. While traditional casinos are adjusting to these new realities, the ongoing growth in internet gambling signifies a promising era for New Jersey’s gambling sector, albeit with challenges that require a careful balancing act. As the industry continues to adapt, it will be fascinating to see how both online and brick-and-mortar establishments evolve to thrive in this changing environment.
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