New Jersey's casino and sports betting industry achieved a remarkable milestone in 2023, as operators and their online partners raked in a record-breaking $5.8 billion in revenue, according to figures released by the New Jersey Division of Gaming Enforcement. This represents an impressive 11% increase compared to the previous year.
However, the news was not entirely positive for Atlantic City's nine casinos, as two-thirds of them reported lower in-person gambling revenues than pre-pandemic levels. Only three casinos - the Borgata, Hard Rock, and Ocean - managed to surpass their 2019 earnings. Collectively, the casinos earned $2.8 billion from in-person gamblers, a feat largely attributed to the strength of the three newest establishments.
Despite this, James Plousis, Chairman of the New Jersey Casino Control Commission, remains optimistic about the overall performance. He highlights that in-person casino winnings reached their highest level in a decade, internet gambling revenue exceeded the previous year's record by more than 15%, and sports wagering revenue hit a yearly record.
The introduction of online gaming and sports betting has fueled the remarkable growth. Jane Bokunewicz, Director of the Lloyd Levenson Institute at Stockton University, explains that new gaming products contributed nearly 46% of the total gaming revenue for the year. She adds, 'The industry's gamble on innovative new gaming products for the internet gaming and sports wagering markets seems to be paying off.'
The sports betting sector alone generated over $1 billion in revenue from nearly $12 billion worth of bets, after deducting winning bets and other expenses. This underscores the popularity and profitability of sports wagering among gamblers.
In terms of in-person gambling revenues, the Borgata maintained its market-leading position, earning $729 million, a modest increase of less than 1% from the previous year. Hard Rock saw a 4.1% rise, amounting to $512 million, while Ocean experienced the most substantial growth with a 16.3% increase to nearly $415 million.
Other casinos experienced varying degrees of decline in their in-person earnings. Harrah's reported $254 million, a decrease of 1.5%; Tropicana earned $240 million, down 3.3%; Caesars garnered $231 million, down 1.7%; Resorts collected $163 million, down 2.3%; Bally's recorded $155 million, an increase of less than 1%, and Golden Nugget earned $146 million, a decline of 1.8%.
The online gambling segment contributed significantly to the overall revenue. Internet gambling brought in over $1.9 billion, representing a substantial 16% increase from the previous year. When considering both internet and sports betting revenue, the Borgata maintained its leading position with $1.3 billion, similar to the previous year. Golden Nugget witnessed a 15.5% surge, earning nearly $672 million, while Hard Rock achieved an 8.6% increase to $626 million. Ocean experienced the greatest growth, with a substantial 21.4% rise, reaching nearly $473 million.
Among internet-only entities, Resorts Digital soared with a 50.4% rise to $822 million, while Caesars Interactive Entertainment NJ faced a decrease of 20.7%, earning $90 million.
The overall figures indicate the significant impact of online gambling and sports betting on the Atlantic City casino industry's resurgence after the hardships of the COVID-19 pandemic. As the market continues to evolve and innovate, these sectors are becoming increasingly vital to the industry's success. Despite some challenges faced by in-person gambling, the continued growth in revenue is undoubtedly a positive sign for the future of Atlantic City's casinos and the broader New Jersey gaming market.
