Posted on: August 16, 2024, 04:44h.
Last updated on: August 16, 2024, 04:44h.
Atlantic City, a popular beach town, is facing challenges this summer as its nine casinos are experiencing a decline in revenue. The traditionally busy summer months are not meeting expectations for the gaming resorts in 2024.
The New Jersey Division of Gaming Enforcement (DGE) reported a 6.1% decrease in brick-and-mortar gross gaming revenue (GGR) for July, with slot win falling almost 5% and table games seeing a 10% decrease in hold.
While June showed a slight improvement with a 1% year-over-year increase in in-person casino revenue, the combined gaming win for June and July 2024 reflects an overall decrease compared to the same period in 2023.
Industrywide Losses
Only three of the nine casinos saw year-over-year gaming win increases in July, with Hard Rock, Resorts, and Golden Nugget being the exceptions. Market leader Borgata experienced a 3% revenue decline.
Other major casinos like Ocean Casino, Tropicana, and Caesars faced revenue declines in July, with Caesars’ sister property, Harrah’s, reporting a 24% revenue decline.
Despite in-person revenue declines, online gaming and sports betting saw significant growth, leading to an overall positive trend in New Jersey gaming revenue.
iGaming websites and apps won nearly $195.4 million, marking a 26% gain from July 2023. Sports betting, including retail wagering and online options, totaled $80 million, a 31% increase from the previous year.
Overall, New Jersey gaming revenue increased by $41.6 million in July, with the state’s gaming industry remaining strong despite challenges faced by brick-and-mortar casinos.
Atlantic City saw its highest gaming revenue for the month of July in over a decade, attributed to internet gaming and sports wagering revenue,” said James Plousis, chair of the New Jersey Casino Control Commission.
While the overall revenue increased, the casinos are still vulnerable due to economic uncertainties and upcoming events like the U.S. presidential election. The trade group representing the casinos is advocating against eliminating indoor smoking, citing potential job losses.
Despite challenges, casinos are benefiting from partnerships with online gaming and sports betting operators like DraftKings and FanDuel.