Atlantic City Casinos Report Slow Summer, No Gaming Fireworks in July

Posted on: August 16, 2024, 04:44h. 

Last updated on: August 16, 2024, 04:44h.

Devin O'Connor @CasinoorgDevinO Read More

Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

Atlantic City is a seasonal beach town where its nine casinos rely heavily on the traditionally busy summer months where New Jerseyans, New Yorkers, and Pennsylvanians flock down the shore. 2024 isn’t going as the gaming resorts had hoped.

The New Jersey Division of Gaming Enforcement (DGE) on Friday reported that July brick-and-mortar gross gaming revenue (GGR) totaled $272.3 million, a 6.1% decrease from July 2023. Slot win fell almost 5% to $207.3 million while table games saw hold plunge 10% to about $65 million.

June fared a bit better, as in-person casino revenue was $244 million to officially kick off the summer, a 1% year-over-year improvement. But through two months of summer, traditional gaming win of approximately $516.4 million reflects a 2.8% decrease from June and July 2023, or an industrywide GGR loss of $15.1 million.

Industrywide Losses?

Only three of the nine casinos reported year-over-year gaming win increases in July. They were Hard Rock at $54.6 million (up 3%), with the other being two of the smaller retail players in Resorts at $15.5 million (up 1.9%) and Golden Nugget at $14.1 million (up 0.7%).

Caesars’ sister property, Harrah’s, also felt steep losses, as the Marina District casino reported a 24% revenue decline to $19.2 million. Bally’s, long the bottom feeder of the Atlantic City casino industry, saw play further slow by 23% to GGR of just $13.3 million.

The in-person revenue declines were easily offset online and at the state’s sportsbooks to move statewide GGR into positive territory.

iGaming websites and apps, which are tethered to the nine Atlantic City casinos through partnerships with third-party operators, won nearly $195.4 million from remote players. That marked a 26% gain from July 2023.

Sports betting, inclusive of retail wagering at the casino’s physical sportsbooks, three horse racetracks, and online, totaled $80 million, 31% higher than a year ago.

In total, New Jersey gaming revenue hit $547.75 million, an 8%, or $41.6 million increase. Despite brick-and-mortar concerns, James Plousis, chair of the New Jersey Casino Control Commission, says the state’s overall gaming industry remains strong.

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,” Plousis said in a statement provided to Casino.org.

Plousis blamed a bad calendar on the in-person revenue shortfalls.

“July’s monthly casino win did not keep pace in comparison to recent years, partly due to a calendar with fewer weekend days,” Plousis said. “It fared better over a longer range, ranking as the fifth-best casino win for July in 11 years.?

Casinos Remain Vulnerable

The Atlantic City gaming industry continues to stress that its economic situation remains rattled, as consumer spending concerns linger and a U.S. presidential election approaches. The trade group that represents the nine resorts has asked state lawmakers not to eliminate indoor smoking at this time, a regulatory switch that casino executives say would lead to job cuts.

While overall GGR increased in July, the casinos share a considerable portion of the iGaming and sportsbook money with their partners like DraftKings and FanDuel.