New Jersey continues to break new records, as the New Jersey Division of Gaming Enforcement reported that the total revenues for gaming in the state have reached $6.3 billion in 2024. But although the overall gaming revenue has risen, this was mostly fueled by iGaming revenue - casinos in Atlantic City still struggled last year, hitting a revenue of only $2.81 billion, a decline of 1.1% from 2023.

New Jersey's gaming industry achieved an unprecedented milestone in 2024, with total gross gaming revenue soaring to almost $6.3 billion. The 9% increase was largely fueled by the explosive growth of iGaming, which encompasses online slot machines and table games.

The New Jersey Division of Gaming Enforcement disclosed on Thursday that iGaming revenues alone contributed $2.38 billion, marking a 24% surge from 2023. This $463.4 million growth underlined the increasing preference for online gaming in the Garden State. Sportsbooks across the state also performed robustly in 2024. For the second consecutive year, oddsmakers surpassed the $1 billion revenue mark, with bettors losing a total of $1.094 billion both online and at physical sportsbooks. This represented a nearly 9% improvement from 2023.

Atlantic City casinos continue to face challenges

Despite the record-breaking statewide figures, Atlantic City's brick-and-mortar casinos struggled to maintain their footing. The city's nine casinos reported combined in-person gaming revenue of just over $2.81 billion, reflecting a slight 1.1% decline from 2023. This $30.4 million drop showed the challenges faced by physical gaming establishments as online platforms gained prominence.

"Atlantic City casino win struggled to keep pace with the record growth of the online gaming and sports wagering segments in 2024," said chair of the New Jersey Casino Control Commission James Plousis. However, he noted a silver lining: "Annual casino win ranked as the second-best year since 2013."

The casinos generated $602.6 million in state taxes during the year, a significant contribution that primarily supports disabled citizens and seniors in New Jersey.

Performance of individual casinos

The nine Atlantic City casinos experienced mixed results in 2024. Borgata solidified its market leadership with in-person Gross Gaming Revenue of $738.1 million, reflecting a 1.2% year-over-year increase. Hard Rock followed with $544.9 million, an impressive 6% growth. Ocean Casino Resort, while ranking third with $409.7 million, saw its revenue decline by 1.3%. Meanwhile, Golden Nugget was among the few to post gains, reporting a 0.7% increase to $147.1 million.

Conversely, several properties faced significant losses. Harrah's recorded the steepest decline, with a 12% decrease to $223.8 million. Bally's GGR fell by 6% to $145.4 million, while Tropicana and Caesars both saw 5% dips, to$228 million and $218.4 million, respectively. Resorts also reported a slight 1% decline to $161.9 million.

Challenges of online gaming's dominance

While the surge in iGaming helped offset the decline in physical casino revenue, traditional casinos expressed concerns about the broader implications. For instance, much of the revenue from online gaming is shared with third-party platforms like FanDuel and DraftKings, leaving less profit for the casinos themselves.

Additionally, online gamblers do not contribute to the other revenue streams that are vital to Atlantic City's economy, such as hotel stays, dining, entertainment, and retail. These factors contributed to a 9% decline in gross operating profits for the casinos through the first three quarters of 2024.

December offers some relief

Atlantic City casinos ended 2024 on a relatively positive note, with table games reporting a strong December performance. Blackjack, craps, and roulette generated nearly $63.8 million in GGR, a 12% increase from the same month in 2023. Slot machine revenue, however, dipped by 4% to $168 million, while iGaming continued its upward trajectory with a 26.5% increase, generating $228 million.

Sports betting had a challenging December, as many football results favored bettors. The Philadelphia Eagles' strong performance during the month contributed to a 43% drop in sportsbook revenue, which totaled $62.8 million.

New Jersey's record-breaking gaming revenue in 2024 demonstrates the pivotal role of iGaming and sports betting in the state's economy. However, the challenges faced by Atlantic City's physical casinos highlight the need for strategic investments to adapt to the evolving gaming landscape.