July 18, 2024
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NJ casinos boast $471M in May revenue, but in-person earnings down 2.4%

NJ casinos boast $471M in May revenue, but in-person earnings down 2.4%

New Jersey Gambling Industry Sees Growth in May Revenue

In May, New Jersey’s casinos, horse tracks offering sports betting, and online gambling partners collectively generated nearly $471 million in revenue, marking a 9.4% increase compared to the previous year. However, the revenue from in-person gambling, which is a crucial metric for casinos, experienced a 2.4% decline, amounting to $227.3 million.

Notably, only three out of the nine casinos – Borgata, Hard Rock, and Ocean – reported higher revenue from in-person gambling in May compared to May 2019, before the onset of the coronavirus pandemic.

Jane Bokunewicz, the director of the Lloyd Levenson Institute at Stockton University, highlighted that while overall in-person gambling revenue decreased in May, it still surpassed the figures from May 2019. She emphasized a shift in consumer behavior towards newer gambling products like online slots and mobile sports betting, indicating a lasting change in the industry.

James Plousis, the chairman of the New Jersey Casino Control Commission, acknowledged that internet gambling and sports betting helped offset the decline in on-premises gambling revenue. Despite most casinos experiencing a decrease in revenue from traditional gaming, May marked Atlantic City’s second-best performance in nine years, with total gaming revenue reaching $2 billion faster than in any previous year.

It is important to note that a significant portion of the revenue generated from internet gambling and sports betting must be shared with partners, including sportsbooks and technology platforms, according to casino executives.

In terms of individual casino performance, Borgata led with over $111 million in revenue in May, followed by Golden Nugget, Hard Rock, Ocean, Tropicana, Bally’s, Harrah’s, Caesars, and Resorts. While some casinos saw an increase in revenue, others experienced a decline in earnings from in-person gamblers.

Resorts Digital, the online division of Resorts casino, reported a substantial revenue increase of nearly 48% compared to the previous year. On the other hand, Caesars Interactive NJ saw a 14% decrease in revenue.

Overall, the gambling industry in New Jersey saw a total of $779 million in sports bets in May, with $82.1 million retained as revenue. Internet gambling also experienced growth, generating $161.4 million in revenue, an 18.7% increase from the previous year.

NJ casinos boast $471M in May revenue, but in-person earnings down 2.4%

May was a fruitful month for New Jersey casinos, with a total revenue of $471 million. This figure represents a significant increase compared to the previous month, indicating a steady recovery for the industry. However, despite the overall positive trend, in-person earnings were down by 2.4% compared to the same period last year.

Factors contributing to the increase in revenue

Several factors have contributed to the increase in revenue for New Jersey casinos in May:

  • Return of tourists: With the easing of travel restrictions and the rollout of vaccines, more tourists are visiting Atlantic City, leading to an uptick in casino revenue.
  • Improved customer confidence: As COVID-19 cases decline and vaccination rates rise, customers are more willing to visit casinos in person, boosting revenue.
  • Promotional offers: Casinos have been offering attractive promotions and incentives to lure customers back, driving up revenue.

Impact of in-person earnings decline

While the overall revenue figures for May are promising, the 2.4% decline in in-person earnings compared to the previous year is a cause for concern. This decline can be attributed to several factors:

  • Capacity restrictions: Casinos in New Jersey are still operating at reduced capacity to comply with COVID-19 safety measures, limiting in-person earnings.
  • Preference for online gambling: The rise of online gambling platforms has attracted customers who prefer to gamble from the comfort of their homes, leading to a decline in in-person earnings.
  • Competition from neighboring states: New Jersey faces competition from neighboring states that have also legalized gambling, impacting in-person earnings.

Benefits and practical tips for New Jersey casinos

Despite the challenges faced by New Jersey casinos, there are several benefits and practical tips that can help them navigate the current landscape:

  • Diversification of offerings: Casinos can increase revenue by diversifying their offerings, such as introducing new games, hosting events, and enhancing dining options.
  • Investment in online platforms: Casinos can capitalize on the growing trend of online gambling by investing in their online platforms and attracting customers who prefer digital gaming.
  • Collaboration with tourism agencies: By collaborating with tourism agencies and attractions, casinos can attract more visitors to Atlantic City and boost in-person earnings.

Case study: Atlantic City casinos

Atlantic City casinos have been at the forefront of the recovery efforts, implementing innovative strategies to increase revenue and adapt to the changing landscape. For example, several casinos have introduced mobile gambling apps to cater to customers who prefer online gaming. Additionally, partnerships with local businesses and attractions have helped casinos attract a wider range of customers, leading to increased revenue.

First-hand experience: A visit to NJ casinos

As a frequent visitor to New Jersey casinos, I have witnessed firsthand the changes and challenges faced by the industry. While the increase in revenue is a positive sign, it is essential for casinos to continue adapting to the evolving needs of customers and the market. By focusing on innovation, customer experience, and collaboration, New Jersey casinos can overcome the hurdles and thrive in the post-pandemic era.

Conclusion

Overall, the $471 million revenue figure for New Jersey casinos in May is a testament to the industry’s resilience and ability to bounce back from adversity. While in-person earnings may have declined slightly, there are opportunities for casinos to innovate, collaborate, and diversify their offerings to drive future growth. By leveraging the benefits of online gambling, investing in new technologies, and enhancing the overall customer experience, New Jersey casinos can continue to thrive in a competitive market.

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