Atlantic City's Casinos Record Impressive February, Generating Around $215 Million from Traditional Gaming.
Despite turbulent economic conditions with inflation roaring and a shaky stock market, Atlantic City casinos show remarkable resilience.
The nine operating casinos in Atlantic City express concerns about their financial stability due to COVID-19's significant impact on their business operations for nearly three years. They are currently advocating for state politicians to postpone any discussion of proposed legislation that would implement a complete smoking ban on gaming floors. They argue that such a measure would put Atlantic City at a competitive disadvantage against casinos in neighboring Pennsylvania.
However, data from the New Jersey Division of Gaming Enforcement (DGE) suggests a brighter outlook along the coast.
Land-based gross gaming revenue (GGR) for last month amounted to $214.9 million, representing a 1.2% increase or an additional $2.5 million compared to February 2022. The month of February 2023 was the second-best February in the past 11 years for Atlantic City.
James Plousis, chair of the New Jersey Casino Control Commission, commented, "Casino win in the city saw a modest increase, continuing the recent positive trend. The results for February were the second-best in 11 years, illustrating that Atlantic City's in-person experiences remain attractive."
From January to February, total year-to-date land-based GGR amounts to approximately $426.6 million, a nearly 8% increase compared to the first two months of 2022.
In-Person Gambling Thriving
Atlantic City casinos experienced a prosperous 2022, winning approximately $2.8 billion on their physical floors. This figure represents a 4% improvement compared to the same nine gaming floors' earnings in pre-pandemic 2019.
Inflation has taken a substantial bite out of the revenue growth due to rising costs across the board. However, the US government's efforts to curb inflation, such as interest rate hikes, are reportedly helping slow down the pace of rising costs compared to last summer.
In addition to the $214.9 million won in-person last month, the resorts' iGaming platforms added around $142.6 million in gross revenue. This figure represents a 10% increase compared to February 2022.
Casino sportsbooks contributed approximately $20 million, marking a 39% year-over-year surge, to reach a total gambling earnings of approximately $377.5 million for February. This figure represents a 5.8% increase compared to February 2022 and a remarkable 62.5% increase compared to February 2019.
However, the brick-and-mortar casinos emphasize that a significant portion of their iGaming and sports betting revenue is shared with third-party gaming providers like DraftKings and FanDuel, entities that do not have as much investment in Atlantic City as the physical resorts.
Struggling Casinos
Despite the overall positive numbers, the DGE's analysis by casino reveals that while some properties thrive, others face a decline in market share.
In February 2023, only three casinos, Borgata, Hard Rock, and Ocean, won more money on their physical floor compared to February 2019. Casinos such as Bally's, Caesars, Golden Nugget, Harrah's, Resorts, and Tropicana experienced a decline in in-person gaming.
Tropicana and Golden Nugget were among the casinos with the most significant losses, with in-person GGR declining by 29% and 30%, respectively.
Jane Bokunewicz, director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism, attributed the locals' preference for Hard Rock and Ocean, Atlantic City's new arrivals that opened in June 2018, to the dwindling market share of certain casinos.
Borgata, on the other hand, has maintained its market dominance in Atlantic City.
