Atlantic City, a bustling seasonal beach town known for its nine casinos, heavily relies on the traditionally busy summer months when crowds from New Jersey, New York, and Pennsylvania pour in. However, 2024 has brought disappointing results for the city’s gaming resorts, contrary to their expectations.
The New Jersey Division of Gaming Enforcement revealed that July’s brick-and-mortar gross gaming revenue (GGR) amounted to $272.3 million, marking a 6.1% decline from July 2023. Slot wins fell by almost 5%, totaling $207.3 million, while table games revenue plunged by 10% to roughly $65 million.
June showed slight improvement with in-person casino revenue reaching $244 million, which was a 1% year-over-year improvement, signaling the beginning of summer. Nonetheless, through the first two months of summer, the traditional gaming win of around $516.4 million signifies a 2.8% decrease from the same period in 2023, resulting in an industrywide GGR loss of $15.1 million.
Among the nine casinos, only three reported year-over-year gaming win increases in July. Hard Rock led the positive trend with $54.6 million, up by 3%. Smaller players, Resorts, and Golden Nugget followed with $15.5 million (a 1.9% increase) and $14.1 million (a 0.7% increase), respectively.
However, the market leader Borgata experienced a more than 3% drop in in-person GGR, settling at $75.9 million as Hard Rock continued to erode Borgata’s gaming dominance. Ocean Casino’s revenue dropped by 3.3% to $36.5 million, Tropicana’s win decreased by 4.2% to $23.1 million, and Caesars’ income plummeted by 20% to $19.9 million.
Caesars’ sister property, Harrah’s, also reported substantial losses, with revenue falling 24% to $19.2 million. Bally’s, traditionally one of the lesser-performing casinos in the city, saw its GGR decline by 23%, reaching just $13.3 million.
Despite the downturn in in-person revenue, online gaming and sports betting provided a significant boost, propelling statewide GGR into the positive. Tethered to the nine Atlantic City casinos through third-party operators, iGaming websites and apps won nearly $195.4 million from remote players, marking a 26% increase from July 2023. Additionally, sports betting, encompassing retail wagering at physical sportsbooks, three horse racetracks, and online platforms, amassed $80 million, a 31% surge from the previous year.
In total, New Jersey’s gaming revenue climbed to $547.75 million in July, an 8% increase, or $41.6 million gain. Despite the challenges faced by brick-and-mortar establishments, James Plousis, chair of the New Jersey Casino Control Commission, emphasized that the state’s overall gaming industry remains robust.
Plousis attributed the drop in in-person revenue partially to a calendar with fewer weekend days. “July’s monthly casino win did not keep pace with recent years, partly due to a calendar with fewer weekend days,” he explained. Nonetheless, he noted that the performance was better over a longer span, ranking fifth-best for July in 11 years.
Industry executives continue to express concerns about Atlantic City’s vulnerable economic situation, citing lingering consumer spending worries and the looming U.S. presidential election. The trade group representing the nine resorts has urged state lawmakers not to ban indoor smoking at this time, contending that such a regulatory shift would lead to job cuts.
Though overall GGR saw an increase in July, it’s important to recognize that casinos share a significant portion of the iGaming and sportsbook revenues with partners like DraftKings and FanDuel.
