According to the latest data from the New Jersey Division of Gaming Enforcement, the total gaming revenue in New Jersey for July 2024 increased by 8.2% compared to the same period last year. Driven by strong performances in online gaming and sports betting, the total revenue for July reached $547.8 million. However, traditional brick-and-mortar casino revenues continued to lag, reflecting the ongoing challenges faced by the Atlantic City casino industry.
Strong performance in online and sports betting:
James Plousis, Chairman of the New Jersey Casino Control Commission, highlighted the success of New Jersey's online gaming and sports betting in a statement, noting that July's total gaming revenue reached the highest level for the month in over a decade.
"Thanks to near-record online gaming revenues and strong sports betting income, Atlantic City's total gaming revenue in July reached the highest level in over a decade. The diversity of gaming options and the strength of New Jersey's online casinos continue to provide resilience in a highly competitive market—not only benefiting the gaming industry but also the city, region, and state's economy," Plousis stated.
Data shows that despite the growth in total gaming revenue, Atlantic City's brick-and-mortar casino total gaming revenue fell by over 6%. This decline reflects a general trend in the industry where online gaming and sports betting are increasingly overshadowing traditional casino operations.
Decline in casino on-site revenue:
Jane Bokunewicz, Director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism at Stockton University, commented on the ongoing challenges faced by Atlantic City casinos through an official press release (pdf) from the NJDGE. She said, "Despite hopes that the number of self-driving visitors to Atlantic City casinos would rebound this summer following last year's 'dream vacation' and flying to destinations trends, the on-site gaming numbers in July suggest otherwise. "
Bokunewicz noted that while July 2024's casino on-site revenue was not significantly lower than that of July 2019, the market has undergone significant changes in recent years.
In July 2024, brick-and-mortar casino revenue was $272.3 million, compared to $277.2 million in July 2019. Plousis acknowledged that the decline in physical gaming revenue was partly due to the calendar configuration, with fewer weekends this year. He commented, "Compared to recent years, July's monthly casino revenue did not keep pace, partly because there were fewer weekends on the calendar."
Impact of changing travel trends:
The shift in tourists' travel preferences might also affect Atlantic City's gaming revenue. Bokunewicz pointed out that more tourists are choosing to fly to destinations rather than drive to places like Atlantic City. "This year's record-high number of passengers at U.S. airports (according to TSA reports) may indicate that more people are opting to fly to their vacation destinations compared to driving or even 'staycations'," she observed.
This trend contrasts sharply with the post-pandemic period when many travelers preferred driving to destinations, which drove revenue growth for Atlantic City in 2022 and 2023. Bokunewicz believes that the current shift might represent a rebound in travel behavior as more people feel comfortable flying again.
