The gambling industry in Atlantic City, New Jersey, has been grappling with the aftermath of the Covid-19 pandemic. While sports betting and internet gambling have thrived, the revenue from in-person gambling has been slow to rebound.
Despite the encouraging numbers reported by the state Division of Gaming Enforcement, it is evident that the core business of Atlantic City casinos, in-person gambling, has not yet reached pre-pandemic levels. Out of the nine casinos, only four reported higher in-person winnings in September 2021 compared to September 2019. This indicates that the industry as a whole is still struggling to regain lost ground even after more than three years since the outbreak.
Jane Bokunewicz, the director of the Lloyd Levenson Institute at New Jersey’s Stockton University, told the Associated Press that she attributes the slow recovery to various factors beyond the pandemic itself. Inflation, gas prices, changes in consumer behavior, and the expansion of new gaming products have all posed challenges to the casinos. However, despite these obstacles, brick-and-mortar gambling has continued to show year-over-year growth and remains the dominant revenue source for Atlantic City casinos.
In September 2021, the amount of money collectively won from on-premises gamblers was $246 million, surpassing the figure of $224 million in September 2019. However, only four casinos—Caesars, Hard Rock, Ocean and Resorts—reported higher in-person winnings last month compared to September 2019.
It is important to note that the figures only represent the revenue generated from in-person gambling. When internet and sports betting money is included, the overall picture changes. In September 2021, the casinos, horse tracks, and their online partners collectively won more than $521 million from gamblers, indicating a growth of 7.5 percent compared to the previous year.
However, it is crucial to understand that online and sports betting revenue is not solely for the casinos to keep. As much as 70 percent of this revenue must be shared with other parties, including tech platforms and sportsbooks. Therefore, the figures can be misleading when assessing the casinos’ actual financial performance.
Internet gambling has emerged as a crucial revenue source for Atlantic City casinos. In September 2021, it brought in nearly $164 million, showing a growth of over 21 percent compared to a year earlier. Although this figure fell just short of the record $165.7 million generated in March of the same year, it reflects the increasing popularity of online gambling.
Among the internet-only entities, Resorts Digital reported $45.4 million in winnings, indicating a remarkable growth of nearly 33 percent. On the other hand, Caesars Interactive Entertainment NJ reported $5.6 million, experiencing a decline of over 38 percent.
