Home Money & Business Business New Jersey online gaming achieves a new revenue milestone of $213 million

New Jersey online gaming achieves a new revenue milestone of $213 million

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ATLANTIC CITY, N.J. — The online gambling sector in New Jersey has once again set a record in October, marking a significant shift towards digital betting as more individuals choose to gamble online rather than visiting physical casinos in Atlantic City.

The New Jersey Division of Gaming Enforcement released figures indicating that both casinos and their online partners generated $213.6 million in revenue for October, eclipsing the previous high of $208 million enjoyed in September.

When combined with in-person casino earnings and profits from sports bets, total winnings for the nine Atlantic City casinos, along with two horse tracks that accept sports wagers, reached nearly $500 million last month, reflecting a 2.6% increase compared to the same period last year.

However, it is important to note that the earnings from internet and sports betting are not solely retained by the casinos, as they need to share a portion with external entities such as sportsbooks and technology providers. Consequently, the casinos prioritize the revenue garnered from on-site patrons as their main profit source.

Unfortunately, the performance of in-person gambling remains underwhelming for the majority of Atlantic City casinos. Only three establishments—Borgata, Hard Rock, and Ocean—saw an increase in revenue from in-person gamblers compared to October 2019, prior to the pandemic’s impact.

The trend of increased online gambling, particularly fueled by the COVID-19 crisis, seems to be solidifying within New Jersey’s gambling environment. Jane Bokunewicz, director at the Lloyd Levenson Institute at Stockton University, which focuses on the Atlantic City gaming sector, affirms that this pattern is gaining clarity.

“Despite the unseasonably dry and mild weather in October, land-based gaming operators have not experienced strong growth this year, posting a year-over-year decline of 8.5%,” she remarked. Yet, she pointed out that total casino revenue rose by over 9% from last year, largely due to the continuous expansion of internet gaming.

James Plousis, chairman of the New Jersey Casino Control Commission, highlighted the milestone reached in October when internet revenue surpassed that generated from in-person casino visits for the first time, excluding the periods during which physical casinos were shuttered in 2020 due to the pandemic.

He also emphasized that internet gambling revenue has exceeded $200 million for two consecutive months. “These notable achievements underscore the growing significance of online gaming within the evolving landscape of the casino industry,” he stated.

In terms of specific in-person gaming results, Borgata reported winnings of $53.4 million, down 6.1% from the previous year. Hard Rock generated $40.8 million, a decrease of 1%. Ocean’s figures fell sharply by over 24% to $32.8 million. Tropicana’s revenue grew by 7.4% to $17.6 million; Harrah’s earned $15.7 million, down 11.5%; Caesars totaled just under $15 million, an increase of 4.1%; Resorts received $12 million, diminishing by over 9%; Bally’s made $11.4 million, down 7.8%; while Golden Nugget achieved $9.6 million, down more than 20%.

If we include internet and sports betting revenues, Borgata grossed $106.1 million, showing an increase of 5.8%; Resorts managed $88.7 million, up nearly 19%; Golden Nugget saw a boost of nearly 25% to $76.7 million; Hard Rock achieved $55.1 million, up by 6.2%; Ocean brought in $39 million, down nearly 19%; Bally’s reported $23.1 million, an increase of 17.2%; Tropicana earned $17.7 million, up 9.1%; Harrah’s garnered $15.8 million, down 10.6%; and Caesars collected $15.2 million, reflecting an increase of 1.5%.