New Jersey’s gaming sector experienced an 8.2% increase in total gaming revenue in July 2024 compared to the same period last year, according to the latest figures from the state Division of Gaming Enforcement. The overall revenue for July reached $547.8 million, driven by robust internet gaming and sports betting performances. However, traditional brick-and-mortar casino earnings continued to lag, reflecting ongoing challenges for Atlantic City’s casino industry.
Strong performance in online and sports betting:
James Plousis, chairman of the New Jersey Casino Control Commission, highlighted the success of New Jersey’s online gaming sector and sports wagering in a statement, noting that the total gaming revenue for July marked the highest level for the month in over a decade.
“Atlantic City’s total gaming revenue reached its highest level for the month of July in over a decade, thanks to near-record internet gaming win and strong sports wagering revenue.“The diversity of gaming options and the strength of New Jersey’s online casinos continue to provide resilience in a highly competitive marketplace — not only for the benefit of the gaming industry, but also for the economy of the city, the region, and the state,” Plousis stated.
Despite the growth in total gaming revenue, gross gaming revenue for land-based casinos in Atlantic City dropped by more than 6%, according to the data. This decline reflects a broader trend in the industry where online gaming and sports betting are increasingly overshadowing traditional casino operations.
Decline in in-person casino revenue:
Jane Bokunewicz, director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism at Stockton University, commented on the ongoing challenges facing Atlantic City’s casinos via the official press release (pdf) from the New Jersey Division of Gaming Enforcement (NJDGE). “While many were hopeful that the summer of 2024 for Atlantic City casinos would see a rebound in drive-in visitors after last year’s trend of people taking their ‘dream vacation’ and flying to destinations, the July in-person gaming numbers suggest that is not the case,” she said.
Bokunewicz noted that while in-person casino revenue for July 2024 was not significantly lower than that of July 2019, the market has evolved considerably in recent years.
In-person casino revenue for July 2024 stood at $272.3 million, compared to $277.2 million in July 2019. Plousis acknowledged that the decline in brick-and-mortar gaming revenue was partly due to the calendar configuration, which featured fewer weekend days this year. He remarked, “July’s monthly casino win did not keep pace in comparison to recent years, partly due to a calendar with fewer weekend days.”
Impact of changing travel trends:
The shift in travel preferences among tourists may also be impacting Atlantic City’s gaming revenue. Bokunewicz pointed out that more travelers are opting for fly-to destinations rather than drive-to spots like Atlantic City. “Record high volumes of passengers traveling through U.S. airports this year (as reported by the TSA) might suggest that more people are choosing fly-to destinations for their vacations compared to drive-to destinations or even ‘staycations,” she observed.
This trend contrasts with the recent post-pandemic period, during which many travelers preferred driving to their destinations, boosting Atlantic City’s revenues in 2022 and 2023. Bokunewicz suggested that the current shift might represent a rebound in travel behavior as more people feel comfortable flying again.
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Vanja Mitic 2024-08-18 12:42:05
