Atlantic City Casinos Start 2024 with Decrease in Brick-and-Mortar Gaming Revenue
January Gross Gaming Revenue at Atlantic City's Brick-and-Mortar Casinos Drops Over 3%
Atlantic City, New Jersey – In a slow start to the new year, Atlantic City casinos saw a decrease in their brick-and-mortar gross gaming revenue for January 2024. The nine casinos reported a total of $205 million in revenue from retail slot machines and table games, reflecting a 3.1% decline compared to January 2023.
Declining Slot Machine Revenue Offsets Increase in Table Games
Slot Machine Revenue Decreases Almost 6% While Table Games Experience 4% Growth
While table games experienced a positive trend, with a nearly 4% increase to $62 million, slot machine revenue took a hit, declining by almost 6% to $143 million. These figures indicate a mixed performance for the casinos' gaming offerings.
Online Gaming Sees Remarkable Growth
Record-breaking $180.8 Million in Online Slot Machines and Table Games Revenue
Despite the decline in brick-and-mortar gaming revenue, online slot machines and table games had a stellar month, recording a record-breaking $180.8 million in revenue. This represents a significant 20% year-over-year increase, highlighting the growing popularity of online gaming options.
Online Poker and Sports Betting Make Significant Contributions
Online Poker Rake Reaches $2.5 Million, While Oddsmakers Collect Over $170.7 Million
Online poker also played a role in boosting the overall gaming revenue, with an impressive $2.5 million in rake. Additionally, sports betting proved to be a major contributor, as oddsmakers took in over $1.7 billion in bets and kept $170.7 million. This marks a substantial 136% surge from the previous year.
New Jersey Gaming Revenue Surges in January
Overall Gross Gaming Revenue in New Jersey Jumps 28% to $559 Million
The state of New Jersey as a whole experienced a significant increase in gaming revenue for the month of January, with a 28% jump totaling $559 million. This robust performance sets the stage for a potentially prosperous year in the gaming industry.
Previous Year's Record-Breaking Performance
New Jersey's Gaming Revenue Reaches Record $5.77 Billion in 2023
Looking back at the previous year, New Jersey achieved remarkable success in the gaming sector. The total gaming revenue reached a record-breaking $5.77 billion, with online slots and table games accounting for an all-time high of $1.92 billion. Furthermore, sports betting revenue surpassed the $1 billion mark for the first time.
iGaming Study Suggests Potential for Growth
Recent Study Finds iGaming May Boost Land-Based Casino Revenue
In a recent study, researchers suggested that iGaming, or online gaming, does not cannibalize revenue from land-based casinos. Instead, it may even contribute to their success. However, it is worth noting that Atlantic City's in-person slot revenue has yet to reach its 2013 levels, and casino table win continues to fall short of the numbers from that year.
Discussions on Smoking Restrictions in Atlantic City Casinos
Proposals Include Distancing Smoking Areas and Building Enclosed Smoking Rooms
Another topic of discussion in New Jersey revolves around potential restrictions on smoking within Atlantic City casinos. Proposed compromises include allowing smoking only at slot machines located at least 15 feet away from table games. Additionally, there is a proposal to construct fully enclosed interior smoking rooms with separate ventilation systems to mitigate the impact of secondhand smoke.
Overall, Atlantic City casinos faced a slow start to 2024 in terms of brick-and-mortar gaming revenue. However, the online gaming sector showed impressive growth, indicating a shifting trend in the industry. As discussions on smoking restrictions continue, the gaming landscape in Atlantic City may undergo further changes in the near future.
Analyst comment
Neutral news. Despite a decrease in brick-and-mortar revenue, online gaming saw significant growth. The overall market is expected to remain steady, but discussions about restricting smoking in casinos may impact customer experience and potentially affect revenue.
