Summer kicks off with a boost in Atlantic City as casino revenue surges by 5%.
Summer season in Atlantic City casinos sees a significant boost, with Memorial Day to Labor Day serving as the definite period.
The accumulated GGR from the nine physical casinos in May 2024 was $239.1 million, a 5.2% increase compared to the previous year. Retail slot machines revenue increased by 4.8% to $181.2 million, while table game hold rose by 6.4% to $57.9 million.
The associated online gaming platforms continue to thrive, generating a total of $192 million, a 19% improvement over May 2023. However, sports betting earnings fell by 4.2% to $78.7 million.
In New Jersey, the overall gaming industry reported a GGR of approximately $510 million for May, an 8.3% improvement.
James Plousis, head of the New Jersey Casino Control Commission, stated, "Atlantic City's gaming revenue in May demonstrated continuous stability, with positive results across all three components — casino win, internet gaming win, and sports wagering revenue." The $192 million earned through online casinos marked iGaming's second-best month in the state.
Market Trends
Plousis revealed that the industry's GGR from January to May had totaled $2.567 billion, a 13.1% increase from the same period in 2023. This year's growth was the industry's quickest in surpassing $2.2 billion in GGR in over a decade.
May signifies optimism for the town, as schools let out and families begin their summer vacations.
Plousis added, "May offered a promising start for the summer season, and positive momentum has been brewing. Consumer interest has been high, driven by recent unique investments in the casino hotels."
Plousis concluded by saying, "The diversified casinos are offering numerous reasons for summer tourists to visit and stay."
Although revenue is on the rise, analysts suggest that Atlantic City's casinos operate under challenging conditions.
Though revenues increased, so have expenses. Despite the favorable revenue comparisons for the month and year-to-date, they may not lead to similar increases in gross operating profit in the future, according to Jane Bokunewicz, director of the Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism (LIGHT) at Stockton University.
"Inflation impacts both operators and consumers. So, it's especially fascinating that, despite inflationary pressure, consumers still seem eager to spend their discretionary money with New Jersey's casino operators," Bokunewicz explained.
Borgata Sets the Pace
MGM Resorts' Borgata in the Marina District consistently ranks as Atlantic City's top-performing casino.
In May, Borgata maintained its lead with $110.9 million in revenue from its physical casino, online gaming partners, and sportsbooks combined. Resorts came in second with a combined GGR of $84.9 million, with the majority of the casino's win — $71.4 million — coming from online gaming and sports betting operations.
Borgata's $61.4 million in brick-and-mortar GGR led the pack, followed by Hard Rock with $49.9 million. Ocean was third at $32 million, Tropicana was fourth at $20.1 million, Harrah's was fifth at $18.2 million, Caesars was sixth at $18 million, Resorts was seventh at $13.6 million, Golden Nugget was eighth at $13.5 million, and Bally's was at the bottom with $12.4 million.
