Atlantic City casinos saw a major increase in total gaming revenue in 2018 buoyed by the introduction of sports betting and the growth of online gaming.
However, the numbers continue to indicate that the re-opening of two Boardwalk casinos in Atlantic City in June—the Hard Rock Atlantic City at the former Trump Taj Mahal and the Ocean Resort at the former Revel Atlantic City—has hurt competition in the market. Only one of the city’s seven casinos operating in 2017—the Golden Nugget—saw an increase in revenue for the year.
All told, the city’s casinos took in nearly $2.86 billion in 20118, up about 7.5 percent from 2017.
The introduction of sports betting at city casinos along with two state racetracks brought in more than $1.24 billion in handle for the less than six months sports betting was running in the state. That generated about $94 million in win for the casinos and tracks offering sports books. The state received about $10.4 million in sports betting taxes.
James Plousis, chairman of the New Jersey Casino Control Commission, said 2018 was the third straight year that Atlantic City’s gambling revenue increased, but did note the impact of the new casino openings.
“While the city had a good year, market adjustments from competition occurred and will continue into 2019,” Plousis said in a press release. “The continuing strength of internet gaming plus a growing sports wagering market will provide the industry with tools to compete.”
The revenue figures were released by the New Jersey Division of Gaming Enforcement. According to an analysis by the Associated Press, Golden Nugget showed a revenue increase of 13.7 percent to $327.8 million. The six other casinos operating in 2017 saw declines.
The Borgata, the city’s market leader, saw its casino revenue decline 4 percent to $771.1 million. Tropicana was down 2.5 percent to nearly $381 million. Resorts was down 3.3 percent to $184.2 million; Harrah’s was down 8.4 percent to almost $333 million; Bally’s was down 9.1 percent to nearly $192 million, and Caesars was down 13.5 percent to $281.3 million.
Hard Rock won $166.7 million from late June through the end of the year, while Ocean Resort won $101.1 million during that same period.
Ocean Resort is in the process of being acquired by an unannounced company assuming a majority ownership stake in it in return for making a $70 million investment to help keep the casino operating. The casino has struggled to find its place in the expanded casino market despite having the leading sports book in the resort.
Online gambling remained a bright spot in the state, taking in nearly $300 million last year, an increase of 21.6 percent over 2017. Of the two internet-only gambling entities in the state, Resorts Digital was up 76.3 percent to $75.7 million, and Caesars Interactive-NJ was up 5.9 percent to $45.5 million, according to the AP.
The Golden Nugget won $104 million online last year and continues as the market leader.
Among racetracks offering sports betting, the Meadowlands earned $31.3 million in sports betting revenue, and Monmouth Park earned $12.4 million for the year, the AP reported.
For the month of December, Atlantic City casinos generated $247.4 million in revenue a nearly 20 percent increase over the same month in 2017 when seven casinos brought in $207 million.
Online gaming revenue generated $29 million in December, an increase of nearly 40 percent over the same month in 2017. Sports betting brought in $9.3 million in revenue in December for Atlantic City’s casino properties. Including the state’s two licensed racetracks, sports betting revenue for December was $20.8 million.
