The Atlantic City casino industry had been the king of gambling in the Garden State. However, retail properties took a backseat to online casinos for the first time ever when it comes to revenue in the month of October.
The New Jersey Division of Gaming Enforcement reported that Atlantic City casinos produced $208.7 million last month, which fell behind to iGaming’s revenue of $213.6 million.
It was only a matter of time before NJ online casinos caught Atlantic City casino revenue. And it’s not surprising that it was during an off-season month. However, the fact that iGaming did surpass retail revenue for the first time ever could raise some eyebrows within the industry.
Atlantic City Casinos down 8.5% year over year
NJ online casinos certainly stole the show last month, generating more revenue than the retail vertical for the first time in history. October was the second-worst month for Atlantic City casinos. January’s total was the lowest of the year at $205 million.
Atlantic City casinos experienced a 8.5% year-over-year decrease and a 9.5% month-over-month decrease. The monthly decrease is to be expected as October isn’t likely to attract summer stragglers that September does. However, the year-over-year drop is a little more alarming to the industry.
The drop in revenue and the iGaming performance suggest that customers are gambling online more than ever before, especially in New Jersey. Jane Bokunewicz, faculty director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism (LIGHT) at the Stockton University School of Business, said in a statement about the status of the retail industry:
“Year to date, brick-and-mortar casino revenue has decreased 1.6%, ($2.36 billion year-to-date 2024 compared to $2.40 billion in 2023) while total gaming revenue has increased year-over-year by nearly 8% ($4.70 billion in 2024 compared to $4.36 billion in 2023) — likely again due to the strong performance of internet gaming and sports betting.
“While it is common to have fluctuations in all areas of gaming revenue, brick-and-mortar revenue in 2024 has been particularly variable this year — gaining over 2023 in some months while declining in others.”
Atlantic City casino revenue certain to rebound in the spring and summer. However, the rapid growth of online casinos is noteworthy for the retail industry.
October revenue was lowest since 2020
Bokunewicz described October as “historically dry and very mild.” The hope would be that properties would benefit from the nice weather.
However, that’s not what happened, as the past month was the worst October performance since 2020, when facilities had restrictions in place because of the pandemic. Here are the previous months of October:
- 2020: $186.1 million
- 2021: $237.5 million
- 2022: $220.6 million
- 2023: $228.1 million
- 2024: $208.7 million
Oddly enough, Atlantic City casinos have recovered from the pandemic. In October 2019, properties produced $202.5 million in revenue. Last month’s total was the lowest overall since January of 2022 ($183.6 million).
Despite that, online gambling, which spiked because of the closures resulting from the pandemic, is putting a cap on the retail industry.
Breaking down Atlantic City casino revenue
| Casino | Total Gaming Win | Table Games | Poker | Slot Machines |
|---|---|---|---|---|
| Borgata | $53,409,391 | $11,824,090 | $990,735 | $41,585,301 |
| Hard Rock | $40,841,614 | $12,342,022 | --- | $28,499,592 |
| Ocean Casino | $32,857,949 | $9,505,288 | --- | $23,352,661 |
| Caesars | $14,992,310 | $2,815,347 | --- | $12,176,963 |
| Harrah's | $15,752,037 | $2,730,708 | $192,679 | $13,021,329 |
| Tropicana | $17,620,875 | $3,980,079 | $135,540 | $13,640,796 |
| Resorts | $12,070,979 | $1,784,768 | --- | $10,286,211 |
| Bally's | $11,472,221 | $2,409,884 | --- | $9,062,337 |
| Golden Nugget | $9,699,992 | $1,430,740 | --- | $8,269,252 |
| Total | $208,717,395 | $48,822,926 | $1,318,954 | $159,894,442 |
