In New Jersey, casino gaming has always been a great source of revenue, and whether it's land-based or online, the pull of casinos is irresistible to many. But while NJ's online casinos are showing impressive growth year-on-year, the retail casinos are somewhat lagging behind. It's important to note that it's still growing, although at a slower pace than its online counterpart, says a faculty director from the Institute of Gaming, Hospitality, and Tourism at Stockton University.

New Jersey's gaming industry celebrated notable milestones in June 2024, with both online and retail casinos reporting strong revenue figures. Online casinos in the state, in particular, posted their fourth-best revenue month since their inception in June 2013. Simultaneously, retail casinos achieved their highest revenue month of the year.

The New Jersey Division of Gaming Enforcement (NJDGE) released the numbers indicating that retail casinos produced $244.1 million in June 2024, a $3 million increase from June 2023. It also marked the best month of revenue for retail casinos in Atlantic City since September of 2023, when they reported a total of $246.5 million in revenue.

An opposing viewpoint

Despite these seemingly positive numbers, Jane Bokunewicz, a faculty director at Stockton University's Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism, offered a different perspective altogether.

She stated that a growth of 1% in the year-over-year retail casino revenues for June is undoubtedly positive, but it doesn't show as much growth as operators would have liked to see, especially in the growing importance of in-person gaming to their overall business strategy. She went on to add, "As we look forward to the rest of the summer, it will be important to monitor year-over-year revenues for brick-and-mortar operations."

Meanwhile, in 2023, land-based casinos showed $2.85 billion in revenue from table and slot games, reflecting a 2.2% increase year-over-year and the highest yearly total since the year it all started in 2013. As of June, 2024, it is certainly noteworthy that New Jersey is ahead by $433,504 and may well surpass the 2023 figures.

A surge in overall gaming revenue

In June, New Jersey's total gaming revenue, which includes online and retail casinos as well as sportsbooks, reached $491 million, marking a 7.4% year-over-year increase. For this year, the total revenue from gaming stands at $2.7 billion, which is a 9.1% increase from the June 2023 revenue.

Bokunewicz pointed out that most of these gains could be attributed to the thriving online gaming market. While retail casinos continue to bring in more money, the growth rate is relatively flat. iGaming, on the other hand, accounted for $1.13 billion in revenue, representing 41% of the total, while retail casinos brought in $1.36 billion.

Bokunecwiz stated, "While internet gaming provides a number of benefits - including revenues taxed at a higher rate, appeal to more/different players and an innovative and evolving gaming experience - it is not a replacement for brick-and-mortar gaming activity in terms of total economic impact for Atlantic City and the state."

She added that in-person gaming activity does not occur in a vacuum. For example, patrons who visit casinos in Atlantic City will likely spend money on things beyond the casino floor, and their presence in the city directly and indirectly supports a variety of businesses, such as lodging, entertainment, food & beverage, as well as thousands of jobs.

Retail casino revenue breakdown

The retail casino sector saw significant contributions from its top performers. Borgata led the way with more than $64.2 million in revenue for June 2024. Other notable figures include Hard Rock with $48,418,762, Ocean Casino with a revenue of $33,477,452, Tropicana at $20,208,223, Caesars with over $19 million in revenue, Harrah's at more than $17.6 million, Resorts at almost $15 million, Bally’s with a total of $13,555,398, and finally, Golden Nugget with $12,512,025.

Some important trends also emerged from these numbers:

Ocean Casino: Reported their highest revenue in three months but experienced a 4% year-over-year decrease.

Hard Rock: Noted an 11% year-over-year increase from the month of June, 2023.

Tropicana: Generated $20.2 million, its best month since December, despite a 4% year-over-year decrease.

These figures highlight the dynamic nature of New Jersey’s gaming industry, where both retail and online sectors continue to play pivotal roles in driving revenue growth. As the industry moves through 2024 towards 2025, stakeholders and investors will be closely watching these trends to navigate and capitalize on the evolving NJ landscape.