Date: November 19, 2024, 08:28h.
Last updated on: November 19, 2024, 08:29h.
Atlantic City casinos saw a decline in market last month, with in-person gross gaming revenue (GGR) dropping by 8.5% despite favorable weather conditions in October.
According to the New Jersey Division of Gaming Enforcement (DGE), only three of the nine casinos — Borgata, Hard Rock, and Ocean — saw an increase in revenue from in-person gamblers compared to pre-pandemic levels in October 2019. However, even these three casinos witnessed a decline in retail GGR year-over-year. Borgata reported $53.4 million, a 6% decrease, Hard Rock recorded $40.8 million, a 1% drop, and Ocean’s $32.9 million represented a 24% decrease from October 2023.
Only two casinos, Caesars and Tropicana, experienced year-over-year growth in in-person GGR. Caesars’ $15 million was a 4.1% increase, while Tropicana’s $17.6 million was 7.4% higher than the previous year.
Other casinos reported declining GGR numbers, with Bally’s at $11.5 million (down 7.8%), Golden Nugget at $9.7 million (a 20.6% drop), Harrah’s at $15.8 million (down 11.5%), and Resorts at $12 million (a 9.2% decrease).
Total brick-and-mortar casino revenue for the month amounted to $208.7 million, nearly $19.4 million less than the revenue generated by the nine properties in October 2023.
Challenging October
October witnessed the largest year-over-year GGR decline for in-person play in 2024, contributing to an overall decrease in GGR for the year.
By the end of October, brick-and-mortar casino revenue had reached $2.36 billion, 1.6% lower than the revenue for the same period in 2023.
Despite favorable weather conditions in October, brick-and-mortar gaming operators in Atlantic City experienced an 8.5% year-over-year decline,” stated Jane Bokunewicz, director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism.
James Plousis, chair of the New Jersey Casino Control Commission overseeing the DGE, acknowledged the challenges faced by the nine casinos with in-person play. He noted that October was the second-best performing October since 2013, apart from 2023.
Despite a drop in profits of nearly 5% for the first half of the year compared to 2023, industrywide revenue, which includes income from various sources like hotels, food and beverages, and entertainment, increased by 1.5% to $1.6 billion.
Third-quarter profit reports are expected soon, with the casino revenue numbers for October indicating a challenging start to the fourth quarter.
Record iGaming GGR, Again
In contrast to the decline in in-person gaming revenue, iGaming continued to grow in October. GGR from online slots, table games, and poker rake reached $213.6 million, a 28.1% increase from October 2023.
The online GGR of $213.6 million set a new record for the New Jersey online gambling market, surpassing the previous record set in September when iGaming revenue exceeded $200 million for the first time.
On the other hand, sports betting revenue decreased by 16% to $77.4 million, with total bets amounting to over $1.13 billion, a 13.3% drop from the previous year.
When considering iGaming and sports betting along with Atlantic City casino revenue, the total GGR for October 2024 increased by 2.6% to $499.8 million. However, casinos emphasize that a significant portion of their iGaming and sports betting revenue is shared with third-party partners like DraftKings and FanDuel.