NJ Casinos Hit Historic Milestone In July
In the world of gambling, New Jersey (NJ) casinos have recently achieved a significant milestone that has caught the attention of both industry experts and enthusiasts alike. July proved to be a month of remarkable growth, with NJ casinos experiencing a remarkable 5.3% surge in gaming revenue compared to the same period the previous year. This surge translated to a staggering $506 million in revenue. While this growth is certainly worth celebrating, it’s essential to take a closer look at the various factors that contributed to this historic achievement.
A Tale of Two Casinos: Land-Based vs. Online
The NJ gambling landscape is a blend of land-based and online casinos, each with its own unique impact on the industry’s revenue stream. In July, land-based casinos faced a minor setback, witnessing a 3% decrease in revenue when compared to July 2022. In contrast, the online casino sector was a driving force behind the historic milestone, contributing 30% of the total monthly revenues.
Unveiling the Numbers: Profit and Performance
Analyzing the financial landscape, the New Jersey gambling industry’s report for July highlights a remarkable trend. The $506 million in revenue marks the most substantial monthly performance in over a decade. Land-based casinos played a pivotal role, accounting for slightly over half (53%) of the total revenue. However, it’s important to note that the gross profit posted in the second quarter of 2023, which amounted to nearly $146 million, saw a decline of more than 20% from the previous year.
Among the notable success stories of July, Borgata Casino emerges as a standout performer. This casino reported record-breaking revenue, surpassing its impressive performance from the previous year by 3%, with over $127 million in revenue. This achievement represents almost a quarter (25%) of the total revenue generated by the entire New Jersey gambling industry throughout the month.
Travis Lunn, the president of Borgata, attributes this exceptional performance to several factors. Customers’ positive response to new dining options and a redesigned gaming floor played a significant role in boosting the casino’s appeal and profitability.
While the digital landscape flourished, in-person gambling at Atlantic City casinos faced a slight dip, with profits down by 3% compared to the previous year, resulting in under $290 million. This metric serves as a crucial indicator for measuring revenue levels before the onset of the COVID-19 pandemic. Notably, only two casinos, Hard Rock and Ocean, managed to outperform their land-based gaming earnings from the same period in 2019, with others coming close to matching that figure.
The growth in NJ’s gambling industry isn’t limited to the physical realm. Online casinos have paved the way for a significant increase in revenue. In fact, documented records from the state’s casinos and online partners reveal a 12% increase in revenue, amounting to $155.2 million—an impressive leap from the $136.7 million recorded in July 2022. The year 2023 has been marked by remarkable progress, with the state’s iGaming revenue surpassing the $1.1 billion milestone—a 13.6% increase compared to the same period the previous year.
The digital arena hasn’t been without its share of twists and turns. In an unexpected shift, Borgata Casino claimed the lead in online revenue, surpassing Golden Nugget. This marked the first time Borgata outperformed Golden Nugget’s monthly wins, and it’s certainly not a victory they take lightly. Other contenders in the digital space, such as Resorts Digital and Golden Nugget, also reported substantial increases in their online revenue.
The Road Ahead: Anticipating Further Gains
Atlantic City casinos witnessed a remarkable 31% increase in profits, amounting to approximately $70 million, during the month of July. This achievement is particularly noteworthy, as the industry hadn’t reached these revenue levels since November 2016, when monthly earnings exceeded $360 million. Furthermore, the performance of July 2023 managed to outshine numbers from July 2021 by an impressive 8%, equating to roughly $22 million.
The trajectory of Atlantic City’s casino revenue is nothing short of intriguing. After several consecutive months of solid gains, these establishments are inching closer to pre-pandemic revenue levels. With health mandates lifted in New Jersey, retail casinos have consistently generated at least $212 million in revenue over six consecutive months.
The year 2023 holds promise for the New Jersey gambling scene. The accumulated revenue of over $1.6 billion by this point in the year far surpasses the pace set in 2021. While the increase in revenue from June to July is a common occurrence, the staggering 30% boost observed in this timeframe holds significant implications for future trends. The overall revenue for 2023 has surged by approximately $220 million, translating to a remarkable 16% increase from the previous year’s total of $1.39 billion in the first seven months.
In conclusion, the NJ casinos’ historic milestone achieved in July 2023 serves as a testament to the industry’s resilience and adaptability. The convergence of land-based and online casinos, alongside strategic shifts in revenue distribution, has propelled the sector to unprecedented heights. As Atlantic City casinos embrace pre-pandemic levels and the online realm continues to flourish, the future of New Jersey’s gambling industry seems brighter than ever.