In an unprecedented surge, New Jersey’s internet gambling market reached a new zenith in September 2024, with Atlantic City’s casinos and their partners garnering over $208 million in earnings. This achievement marks the first instance where monthly internet gambling revenues have crossed the $200 million threshold, highlighting the increasingly crucial role that online gambling plays in the state’s gaming industry, as noted by the New Jersey Division of Gaming Enforcement (NJDGE).
A shift in revenue sources:
While traditional in-person casino gambling continues to be the cornerstone for many establishments, the online segment is proving vital in sustaining the industry’s profitability. This shift is particularly significant as many casinos still grapple with in-person earnings that have not yet rebounded to pre-pandemic levels of 2019. Despite this challenge, the combined in-person revenue for September 2024 slightly surpassed that of September 2019 by $6 million, though not all casinos saw gains.
According to NJDGE’s report, the overall financial landscape for New Jersey’s gambling sector is looking robust, thanks in large part to the dual thrust provided by internet gambling and sports betting. This synergy pushed the total revenue for casinos, their online partners, and two racetracks that accept sports bets to $558 million last month, marking a 7.1% increase compared to the same period in 2023.
James Plousis, chairman of the New Jersey Casino Control Commission, emphasized the significance of these figures. “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,” he stated. “For the third consecutive month, total gaming revenue surpassed $500 million. Last year, total gaming revenue eclipsed $500 million only in August.”
Mixed results across casinos:
The distribution of earnings across Atlantic City’s casinos painted a varied picture. Borgata led with $62.4 million in in-person winnings, a 15% increase. However, other establishments like Ocean and Harrah’s witnessed declines, with Ocean’s in-person winnings plummeting by 28% and Harrah’s by 16.3%. Including internet and sports betting revenues, Borgata’s total climbed to $120.2 million, marking a 12% rise, while others like Ocean and Golden Nugget saw mixed results, reflecting the diverse impacts of online gaming on traditional casino operations.
Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, provided insight into the evolving market dynamics. “September’s numbers were a mixed bag, with soaring internet revenues that seemed to leave brick-and-mortar gaming revenues behind,” she explained. “Year-to-date internet gaming continues to represent a significant share of Atlantic City operators’ revenue mix, contributing 40.8% of the total revenue for the industry through the first three-quarters of the year.”
