August sees Atlantic City casinos' earnings top $280.2 million.
In August, Atlantic City casino revenue bounced back from a disappointing July, with GGR rising over 2%. The nine physical casinos earned $210.5 million from slot machines and $69.7 million from table games, adding up to $280.2 million, a 2.3% increase compared to the same period in 2022.
Slots were a significant contributing factor to the positive results, as terminal hold increased by 3%. Fine income remained unchanged from the previous year.
The $280.2 million generated from land-based gambling is the second-highest August total in the past nine years, and the $210.5 million from slot machines marked the highest revenue for August since 2013.
Online gambling also saw positive growth, with iGaming platforms earning $155.2 million in August, a 18% increase from the previous year.
Sports betting had a great month, with sportsbooks making $96 million out of $725.9 million in bets placed. This represents a 47% rise in sports betting income from August 2022.
A Growing Gaming Landscape
New Jersey's gaming industry, one of the wealthiest alongside Nevada and Pennsylvania, continues to enjoy increased GGR.
The combined earnings of $531.6 million brought in by Atlantic City casinos, iGaming platforms, and sportsbooks in August represent a 12.8% hike compared to August 2022. This figure marked the second-highest GGR monthly total in New Jersey's history.
James Plousis, chair of the New Jersey Casino Control Commission, stated that the $531.6 million wins from August 2023 exceeded $500 million for only the second time in history and are on track for an outstanding year. He also mentioned that the gaming sector had a particularly busy summer. The $1.49 billion won from June to August saw a 10.5% rise compared to summer 2022, a difference of approximately $142 million.
"Comparing Atlantic City's results from the three summer months to previous years, this summer's casino wins and total gaming revenue both reached their highest levels in a decade. Although some operators faced mixed results, overall, the summer has been promising for Atlantic City and the surrounding areas," Plousis concluded.
Slipping Profits
While the gaming revenue shows a continuous increase, with total year-to-date GGR at over $3.7 billion, a rise of more than 11%, some Atlantic City casino executives argue that reports claiming the industry is thriving are misleading.
The casinos share a considerable portion of their iGaming and sports betting profits with third-party partners like DraftKings and FanDuel. This means that the monthly revenue reports don't accurately reflect the performance of their businesses.
Though GGR has increased by more than 11%, total brick-and-mortar revenue is up by only 2.3% from January to August 2022. Besides, the financial pressures from inflation and higher labor costs significantly affect their profit margins.
In August, the casinos reported a 18% decline in first-half 2023 profit margins to $281.4 million, despite a 1.5% increase in net revenue of around $1.6 billion. Net revenue includes income from gambling, hotel stays, and food and beverage sales.
