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The Evolution of Atlantic City Gambling
In a paradigm shift for the Atlantic City gambling market, New Jersey casinos celebrated a milestone in November, raking in a record-breaking $1.62 billion in sports betting revenue. This marked another leap forward for the industry, showcasing a decreasing reliance on physical casinos.
Internet Gambling’s Soaring Success
- Digital Triumph: Online table games and slots witnessed a surge, contributing over $171.5 million to the overall revenue. This highlights the growing influence of internet gambling, transforming the traditional landscape of in-person casino betting.
- Complementary Dynamics: Jane Bokunewicz, Director of the Lloyd Levenson Institute at Stockton University, views internet gaming and sports betting as complementary rather than competitive. They accounted for approximately 45% of Atlantic City’s revenue in November, signifying a symbiotic relationship with brick-and-mortar casinos.
Assessing Market Stability and Profitability
- Stable Market Perspective: Bokunewicz suggests that the relatively flat revenues from brick-and-mortar gaming indicate a stable market. However, the impact of the surge in online and sports betting on overall profitability remains uncertain.
- Partner Dynamics: Revenue streams from online and sports betting are shared with partners like sportsbooks and tech platforms, making the casinos’ primary income stem from in-person gamblers. The profitability of this key business is still below pre-pandemic levels for most casinos.
Individual Casino Performances
Amid the broader industry trends, individual casinos showcased diverse performances:
Online Triumphs:
- Golden Nugget’s Surge: With a robust online gambling operation, the Golden Nugget won over $50 million from internet casino games in November, marking a remarkable 33% increase from the previous year.
- Resorts Digital and Borgata: Resorts Digital, the internet arm of Resorts Casino, secured a win of $47.2 million, up by over 26%. In contrast, the Borgata won nearly $38 million online, experiencing a 14.4% dip.
Overall Revenue Landscape:
- Borgata’s Leadership: The Borgata retained its market leadership, securing over $97 million in overall gambling revenue in November. Despite an 8.6% decline from the previous year, it remained a dominant force in the market.
- Market-Wide Growth: The total gambling revenue, combining internet and sports betting, amounted to $482.4 million, marking a substantial 9.4% increase year-over-year.
In-Person Gambler Metrics
When analyzing the money won from in-person gamblers exclusively, notable trends emerged:
Varied Performances:
- Hard Rock’s Growth: Hard Rock exhibited growth, winning $41.4 million from in-person gamblers, reflecting a robust 16.7% increase.
- Bally’s and Golden Nugget: Bally’s witnessed a notable upswing, winning $12 million—a substantial 20.4% surge. However, Golden Nugget experienced a slight decline, securing $11 million, down by nearly 3%.
Sports Betting Records
While the total handle in sports betting reached a new high of $1.62 billion, the retained revenue after payouts and expenses amounted to $96 million. The Meadowlands Racetrack emerged as a major player, winning over half of this sum at $57.6 million, with Resorts Digital securing over $19 million.
In conclusion, the evolving landscape of New Jersey’s gambling industry, marked by soaring sports betting revenues and a burgeoning online presence, signifies a transformative era. The intricate dynamics between in-person and online experiences underscore the industry’s adaptability, with technology playing a pivotal role in shaping its future. As casinos navigate this landscape, the synergy between traditional and contemporary forms of gambling remains a defining aspect of Atlantic City’s allure.
CBS News
