Recently, the DGE released its latest report on the performance of New Jersey’s iconic shorefront casinos. The DGE’s report revealed a modest decline in the state’s gross gaming revenue (GGR) for February.
In the busy world of New Jersey’s gaming industry, the New Jersey Division of Gaming Enforcement (DGE) stands as the watchful watchdog, overseeing all forms of gaming in the Garden State, except of course, for the state-run lottery.
According to the DGE’s findings, the nine casinos located on the Jersey Shore collectively generated approximately $211.6 million in gaming revenue this February. While this figure represents a huge sum, it also reflects a slight downturn of 1.6% compared to the same period in the previous year.
In February 2023, these nine casino properties in Atlantic City reported a combined GGR of nearly $215 million, which represented a marginal decrease in revenue year-over-year. James Plousis, chair of the New Jersey Casino Control Commission, overseeing the DGE, noted that the February brick-and-mortar numbers were consistent with expectations.
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February’s low numbers unsurprising
These February numbers aren’t surprising for several reasons. Firstly, February typically marks the off-season for the casino industry in New Jersey, as colder weather and fewer tourists lead to decreased foot traffic and gaming activity. Additionally, factors such as bad weather, reduced travel, and post-holiday spending constraints can contribute to softer gaming revenues during this time.
Despite these seasonal challenges, New Jersey’s casinos have historically maintained a baseline level of performance during February, as evidenced by consistent casino wins exceeding $210 million over the past three years.
Despite the reduced foot traffic, the stability of February’s casino win highlights the resilience of New Jersey’s gaming market and the tactical initiatives executed by casino operators to alleviate such seasonal fluctuations. During the low season, it is not uncommon for brick-and-mortar casinos to include targeted marketing campaigns, promotional offers, and special events designed to attract more visitors.
Additionally, the casinos also take part in ongoing investments in amenities, entertainment, and dining options aimed at enhancing the overall guest experience, as well as driving repeat visitation, even during slower weeks.
Online gaming to the revenue rescue!
The good news is that the low brick-and-mortar numbers were offset by the online gambling revenue, which is a testament to the varied nature of New Jersey’s gaming market. While traditional casino revenues may experience seasonal fluctuations or external challenges, online gambling reliably provides a stable source of income that remains mostly unaffected by factors such as weather or tourism patterns.
That’s because online gambling platforms typically offer a more convenient and accessible alternative to traditional brick-and-mortar casinos, allowing players to enjoy a wide range of casino games, sports betting, and other wagering opportunities from the comfort of their homes or on the go. This accessibility attracts a diverse demographic of players, including those who may not frequent physical casinos regularly or who prefer the convenience of online gaming.
Additionally, online gambling platforms benefit from lower operating costs compared to traditional casinos, as they do not require physical infrastructure, maintenance, or staffing associated with maintaining a physical gaming establishment. This cost efficiency allows online operators to allocate resources toward marketing, customer acquisition, and innovation, further driving revenue growth in the online gaming sector.
The surge in iGaming Gross Gaming Revenue (GGR), combined with the rake collected from online poker, climbed by an impressive 28%, reaching a total of $182.3 million. This remarkable uptick marked New Jersey’s second-highest online gaming revenue since the launch of the vertical back in 2013.
In February, oddsmakers retained approximately $67.5 million out of the amazing $1 billion wagered, marking a huge boost in sportsbook income with a 24% year-over-year increase. The healthy performance of the sports betting sector contributed to New Jersey’s overall Gross Gaming Revenue (GGR) for the month, which totaled $461.48 million across all verticals—an impressive 12% surge compared to February 2023.
Leading the charge in the state’s gaming industry was Borgata, the famous Marina District casino operated by MGM Resorts. Borgata emerged as the leader, generating a total win of $98.1 million from its assorted array of offerings, including casino gaming, iGaming operations, and sportsbooks. This continued supremacy highlights Borgata’s status as a powerhouse in New Jersey’s busy gaming landscape.
Borgata’s casino floor generated an impressive $53.6 million in winnings. Additionally, Borgata’s iGaming and sports betting businesses contributed significantly to its overall performance, with iGaming raking in $40 million and sportsbooks netting $4.5 million in earnings.
Resorts emerged as a strong contender in the gaming landscape, securing the second spot with total winnings of $84.3 million. Notably, the Boardwalk property showcased the growing prominence of online gaming, with its iGaming sites delivering remarkable results.
While the physical casino brought in $12.1 million, Resorts’ iGaming platforms climbed, capturing $48 million in winnings. Furthermore, the property’s sportsbooks reaped large revenues, totaling $24.2 million.
In third place, Golden Nugget maintained its strong online presence, with its iGaming platforms emerging as the primary driver of success, accounting for a substantial $51.5 million in winnings. While its physical casino contributed $11.6 million in earnings, the property’s sports betting segment faced challenges, posting a $350K loss for the month.
Other prominent casinos in Atlantic City showcased a mix of brick-and-mortar and online performance. Hard Rock, for instance, reported solid gaming revenue of $55 million, demonstrating its resilience in the competitive market. Ocean followed closely behind with earnings of $37.6 million, further solidifying its position as a key player in the industry.
Tropicana, Bally’s, Harrah’s, and Caesars each contributed to the overall success of the Atlantic City gaming scene, with earnings ranging from $16.3 million to $30.2 million. While these properties continue to navigate the evolving landscape of gaming, their diverse offerings cater to a wide range of preferences.
The revenue figures for the trio of casinos under the Caesars Entertainment umbrella — Caesars, Harrah’s, and Tropicana — saw a slight increase, given the company’s consolidation of its iGaming revenue under its Caesars Interactive license. The digital arm of the company secured approximately $5.6 million in winnings throughout the month.
Final Thoughts
While these properties continue to navigate the evolving landscape of gaming, their diverse offerings cater to a wide range of preferences, ensuring a vibrant and dynamic gaming experience for visitors and enthusiasts alike.
As the industry continues to evolve, it is clear that operators in the Garden State are leveraging digital platforms to diversify revenue streams while meeting the evolving preferences of modern gamblers. With decent performances from both physical and online channels, February’s performance exemplifies the dynamic and hardy nature of New Jersey’s gaming industry.
