Atlantic City casinos experienced a promising start to the summer season, defined from Memorial Day through Labor Day in the US. The nine brick-and-mortar casinos in the Garden State reported a significant increase in GGR or gross gaming revenue in May of 2024, totaling $239.1 million - a 5.2% improvement year-over-year.

But this isn’t the only significant earner to come out of Atlantic City. The revenue from slot machines in retail shops saw a notable increase of 4.8%, reaching $181.2 million. Meanwhile, table games also showed impressive growth, jumping 6.4% to as much as $57.9 million. These positive trends indicate a strong start for the casinos as they head into the lucrative summer months.

iGaming platforms continue impressive growth trajectory

In addition to the strong performance of physical casinos, Atlantic City’s partnered iGaming platforms continued to grow their businesses. Online slots, table games, and poker collectively amounted to $192 million in revenue, marking a 19% improvement compared to May 2023.

However, not all sectors of the gaming industry saw growth. Sports betting, for one, experienced a decline, with revenue falling 4.2% to $78.7 million. Despite this, the overall performance of New Jersey's gaming industry was robust, generating a total GGR of nearly $510 million last month - a notable 8.3% increase from the previous year.

Stability and optimism combined

James Plousis, chair of the NJCCC or the New Jersey Casino Control Commission, highlighted the stability and positive results across all components of Atlantic City’s gaming revenue, including winning via casinos, winnings via internet gaming, and the revenue earned from sports wagering. “Casino win recorded its best May result in eleven years, aided by the best slot machine win since 2012,” Plousis said.

As a matter of fact, the $192 million won by online casinos stood for iGaming’s second-best month earnings in the Garden State. This momentum, combined with the onset of the summer vacation season, provides optimism for Atlantic City’s economic outlook.

Momentum in the market

Plousis also expressed confidence in the continued growth of the industry, noting that statewide GGR from January to May came up to $2.567 billion, reflecting a 13.1% increase compared to the same period in 2023. This year marked the quickest ascent in surpassing $2.2 billion GGR in over a decade.

“May provided a promising start for the summer season and positive momentum has been building,” Plousis stated. He attributed this growth to strong consumer interest driven by recent investments in casino hotels. “(The diversified casinos are) providing abundant reasons for summer tourists to visit and stay,” he added.

Challenges amid growth: will they be surmountable?

Despite the positive revenue trends, gaming analysts caution that Atlantic City’s casinos still face challenging operating conditions. Director Jane Bokunewicz, from the Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism at Stockton University, noted that rising expenses might offset the gains in revenue.

“Inflation impacts both operators, in the form of costs of goods and wages, and consumers, in the form of prices,” Bokunewicz explained. Despite these pressures, it is notable that consumers continue to spend their money on New Jersey’s casino offerings.

Borgata leads the market with earnings of over $110 million

Borgata Casino, an MGM Resorts affiliate located in the city’s Marina District, continues to dominate the Atlantic City market. In May, Borgata generated $61.4 million from its physical casino floor, $43.9 million from its partners in iGaming, and $5.6 million exclusively from its sportsbooks, totaling to around $110.9 million.

Resorts Casino Hotel wasn’t far behind – it followed with a combined GGR of $84.9 million, primarily driven by its online gaming and sports betting operations, which contributed $71.4 million.

Among the brick-and-mortar casinos, Borgata’s $61.4 million was trailed by Hard Rock ($49.9 million) and Ocean with $32 million. Tropicana, Harrah’s, Caesars, Resorts, Golden Nugget, and Bally’s also contributed to the overall positive performance, though with varying degrees of success.

As Atlantic City casinos continue to navigate the summer season, the industry remains cautiously optimistic. The combination of strong interest from consumers, strategic investments, and diversified offerings provides a solid foundation for continued growth. However, the ongoing challenge of managing rising operational costs in the middle of inflationary pressures will be crucial in determining the profitability and sustainability of these record gains.

But with a strong start in May, it’s obvious that Atlantic City is set for a potentially record-breaking summer season, attracting tourists and gaming enthusiasts to its ever-vibrant casino scene.