Atlantic City casino revenue continues to decline, iGaming continues to grow
Last month, Atlantic City's nine land-based casinos along the coast took in just over $227.3 million. Physical traffic in May 2023 was down 2.4% year over year compared to May 2022, when casinos won more than $233 million.
There will be eight weekends in both May 2023 and May 2022, plus the Memorial Day holiday weekend. But retail sales fell last month despite similar comparable figures.
Borgata maintained its market-leading position with land-based gaming profits of approximately $60.5 million. Compared to May 2022, this is a decrease of 4.5%.
The Hard Rock, the city's second-richest casino, won nearly $38.8 million at its land-based casinos, down 6.5% year over year. Ocean Casino ranked third with $29.8 million, a rare bright spot last month as it grew 17%.
Tropicana's gross gaming revenue (GGR) was $21.6 million, down a negligible 0.2 percent, while Harrah's ranked fifth with $19 million, down more than 10 percent. Caesar's personal income was $18.3 million, down nearly 10%. Resort revenue fell 5% to $13.4 million, while Bally's revenue rose 4% to $13.2 million. Golden Nugget had the smallest market share at $12.7 million, down 1%.
May 2023 was the second month in a row with lower live game numbers than the same month in 2022. Retail sales also fell about 2% in April.
iGaming to make up for losses
Although live gaming was suppressed in Atlantic City last month, online casino platforms easily made up for the decline.
The New Jersey Division of Gaming Enforcement (DGE) announced that online slots and table games earned $159.1 million from players last month. Internet poker fees increased by $2.3 million, bringing iGaming's GGR in May to approximately $161.4 million. Online profits increased by 18.7% compared to May 2022.
Gambling operators also had a strong month in May, with sports betting revenue up more than 33% to $82.1 million. Sports betting revenue includes retail sports betting at Atlantic City casinos and sports betting at three racetracks in New Jersey, as well as online sports betting.
Overall, New Jersey gaming industry revenue in May 2023 was $420.9 million. That’s a 9.4% increase from the same month last year.
James Plousis, chairman of the New Jersey Casino Control Commission, said in a press release that the gaming industry was strong across the state in May 2023 despite losses at brick-and-mortar locations.
Casino profits in Atlantic City were down compared to the same month last year. Prusis said that despite lower table and slot machine jackpots at most casinos, this was still Atlantic City's second-best May in nine years. “Continued strength in Internet gambling bonuses and sports betting revenue helped Atlantic City’s gross gaming revenue rise above $400 million for the third consecutive month,” Plousis added.
GGR has crossed the $2 billion mark so far this year, reaching $2.031 billion, according to May data. Plousis said 2023 is the fastest year the state’s gaming industry will cross the $2 billion mark.
Not all income is created equal
Despite the positive progress, May's report on brick-and-mortar gambling in Atlantic City provides more evidence that New Jersey's casino city is struggling. In response to efforts to eliminate indoor smoking, casino executives say they keep only a small portion of iGaming revenue because most of it is shared with third-party interactive partners.
The New Jersey Casino Association, a lobbying group representing casino interests in Trenton, warned state lawmakers that eliminating indoor smoking could lead to a 25 percent drop in on-site revenue.
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Source: www.casino.org
