New Records Set Despite In-Person Gambling Decline
In a surprising turn of events, New Jersey’s gambling industry shattered multiple revenue records in January 2024. However, the highlights were overshadowed by the slump in in-person gambling earnings, causing concern among casinos.
Record-breaking Achievements
Internet Gambling and Sports Betting: Internet gambling revenue surged by nearly 20%, reaching $183 million compared to a year ago. Sports betting revenue also experienced a significant spike, exceeding $171 million, a staggering increase of over 136%.
In-Person Gambling Decline
Despite the overall revenue surge, in-person casino winnings suffered a decline of 3.1% from the previous year. This decline is attributed to harsh winter weather in January diverting activity to online platforms.
Impact of COVID-19
In-person casino earnings are still below pre-pandemic levels, with only three out of nine casinos surpassing their 2020 figures. The remaining casinos are struggling to regain their in-person gambling revenue.
Competitive Advantage Through Online Platforms
Online gaming and sports wagering continue to provide a competitive edge to operators, particularly during off-peak seasons. This advantage has become crucial for sustaining revenue amidst fluctuating in-person earnings.
Key Players and Performances
Several casinos demonstrated remarkable performances in January 2024. The Borgata, Golden Nugget, Hard Rock, Ocean, and Tropicana reported notable revenue increases. However, Harrah’s, Caesars, and Resorts faced declines in their earnings.
Implications for the Industry
The changing landscape of gambling revenue in New Jersey presents a mixture of highs and lows for the industry. As online platforms continue to thrive, the challenge remains for casinos to balance in-person and digital revenue streams effectively.