A summer rebound: casinos in Atlantic City have bounced back after a slow start to the summer months, and in the midst of tremendous growth exhibited by iGaming in New Jersey. The NJDGE has just revealed that Atlantic City casino revenue jumped to $294 million in August, and iGaming revenue continues to grow, reaching a record-breaking peak of $1.52 billion in the last eight months alone.

Casinos in Atlantic City received a much-needed boost to end the summer on a high note, as August revealed robust gaming revenue for properties along the Jersey Shore. According to the New Jersey Division of Gaming Enforcement, the nine casinos in Atlantic City reported a combined total $294 million in revenue on their physical gaming floors during the month. This represents a 4.9% increase year-over-year, translating to approximately $13.7 million more than in August 2023.

Impressive gains in slot and table games

Casino operators saw success in both slot machines and table games. For instance, slot revenue rose by 5.3%, bringing in $221.6 million, while table games generated $72.4 million, marking a 3.8% rise. The Chair of the New Jersey Casino Control Commission, James Plousis, praised the industry's performance, calling August the best month in over a decade for Atlantic City's casinos.

Plousis stated that August 2024 has been the strongest for Atlantic City casinos in the past 10 years. Despite the challenges throughout the year, the month capped off the summer season on a high note. He added that although year-to-date revenue was relatively even compared to the past year, it was still a rewarding result for the last 11 years.

Through the first eight months of 2024, Atlantic City's land-based casino gaming totaled over $1.92 billion. However, this represents a slight 0.2% decrease from the same period in 2023, with slot and table revenue both down by the same margin.

Sports betting and iGaming lead the way

While in-person gaming saw little growth over the first three quarters of this year, New Jersey's online gambling sector continues to thrive. Internet gaming gross gaming revenue, including online slots and table games, soared to over $1.52 billion through August, reflecting a 22.7% year-over-year surge.

Sports betting has also been a key growth area for the state. Although August's hold rate - the amount sportsbooks kept from bets - dropped to $62.7 million from the $698.8 million wagered, down by $33.3 million compared to August 2023, overall sportsbook revenue through eight months stood at $715.8 million. This marks a nearly 20% improvement - or an additional $117.9 million compared to the same period last year.

The rapid growth in iGaming and sports betting contributed to the state's overall gaming industry expanding by 10.5% from January through August. Notably, 2024 marks the fastest year in which New Jersey's gross gaming revenue has surpassed the $4 billion threshold, underlining the rapid expansion of digital gaming in the state.

Continued challenges despite success

Despite the encouraging August figures, casino operators continue to face operational challenges. Inflation and rising costs have put pressure on their bottom lines, affecting overall profitability. In the second quarter of 2024, the NJDGE disclosed that profits declined by nearly 2% across Atlantic City's nine casinos, even though revenue grew by 1.3%.

Casino representatives argue that while gaming revenue has increased, soaring costs for operations, energy, and labor are cutting into the profits. As they head into the fall season, operators hope to maintain the positive momentum built during the summer.

Record-breaking month for iGaming

New Jersey's iGaming sector set a new record in August, as online gamblers lost $198.3 million. This was the highest-ever monthly win for the state's internet gaming platforms. Internet slots and table games accounted for $195.8 million of that total, while online poker contributed nearly $2.4 million.

Sports betting, heavily driven by online activity, was another standout performer. Out of the $62.7 million sportsbooks won in August, more than $57.7 million was produced through online channels. This brings the total iGaming revenue for the month to roughly $256 million, only $43 million less than the total revenue from the physical casino floors.

As Atlantic City enters the fall season, there is optimism within the industry for continued growth in both in-person and online gaming. "Overall business in Atlantic City remains stable, with operators gaining competitive advantage from a unique combination of impressive gaming options and first-class in-person experiences," Plousis remarked. "There is great opportunity for continued momentum in the fall season."

However, sustaining this growth will require operators to navigate the challenges posed by higher costs and shifting consumer behavior and preferences, particularly as online gambling continues to outpace the traditional brick-and-mortar gaming experience. With record-breaking months in iGaming and promising sportsbook performance, the digital side of the industry appears to be the key to long-term success.