In the year 2024, Atlantic City's casino gaming income saw a decrease of 3%.
Atlantic City's casinos experienced a sluggish beginning in 2024, with a decline of over 3% in January's brick-and-mortar gross gaming revenue (GGR) compared to the previous year. The nine casinos raked in $205 million, a 3.1% decrease from the $211.7 million won in January 2023. The main culprit was the decline in slot machine revenue, as their hold reduced by nearly 6% to $143 million. Meanwhile, table game wins increased by almost 4% to $62 million.
Despite the setback for brick-and-mortar play in January, iGaming and sports betting continued to excel. Online slots and table games amassed a record $180.8 million, an impressive 20% increase from the previous year. Online poker rake reached $2.5 million.
Sportsbooks took $1.7 billion in wagers and retained $170.7 million, equating to a remarkable 10% hold. This northern state's sports betting operates online and at Atlantic City casinos and three state horse racetracks. January's sports betting revenue was a whopping 136% year-over-year increase.
All of these endeavors combined resulted in a total GGR of $559 million for New Jersey in January, a significant increase of 28% compared to the same period last year.
Varied Performances
New Jersey's gaming revenues hit a record $5.77 billion in 2023. Online slots and table games broke new ground at $1.92 billion. Sports betting revenue exceeded $1 billion for the first time.
Although iGaming and oddsmakers experienced notable successes, Atlantic City's physical casinos weren't entirely left behind, either. They earned more than $2.84 billion — a respectable 2.2% year-over-year uptick.
A report revealed this week that iGaming doesn't significantly affect land-based casino revenues. The study, carried out by Eilers & Krejcik Gaming for iDEA (iDevelopment and Economic Association), a nonprofit championing the growth of the iGaming industry in the US through advocacy and education, concluded that "online gaming helps boost revenue for operators' brick-and-mortar properties."
However, this hasn't always been the case in Atlantic City.
Online GGR has increased annually since iGaming's launch in 2013. Nevertheless, pre-iGaming levels of retail slot win were only surpassed in 2022 ($2.11 billion). Table game win has yet to reach the $798 million achieved in 2013.
In contrast, the adverse trend of retail casino slot revenue in January is evident, while iGaming revenue continues growing. James Plousis, chair of the New Jersey Casino Control Commission, highlighted the appeal of online gaming and sports betting, as they offer competitive advantages even during typical off-seasons for Atlantic City.
Casinos have invested substantial sums of money in improving their hotels, adding attractions, and enhancing in-person experiences, anticipating an exciting tourist season.
Smoking Conundrum
New Jersey legislators are mulling the ban on indoor smoking on gaming floors in Atlantic City. The casinos strongly oppose this potential regulation, claiming patrons would shift to nearby Philadelphia's casinos, which still allow smoking on table games and slot machines.
Senator John Burzichelli (D-Gloucester) presented a compromise solution this week. It requires smoking to take place exclusively at slot machines situated at least 15 feet away from table games. Additionally, casinos would be allowed to build fully enclosed interior smoking rooms with advanced ventilation systems.
While CEASE (Casino Employees Against Smoking Effects) applauds the intentions, they argue that the 15-foot rule is insufficient to reduce workers' exposure to harmful secondhand smoke, as the smoke may drift across the entire gaming floor. CEASE also voices concerns about workers' potential job security, as they may face discrimination by employers for refusing to work in smoking rooms.
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