New Jersey’s gambling industry saw a positive increase in revenue in May, with casinos, horse tracks, and online partners collectively winning nearly $510 million from gamblers, an 8.3% increase from the previous year. Internet gambling performed well, falling just short of its record set in March. While in-person gambling revenue surpassed pre-pandemic levels from May 2019, only three out of nine casinos saw an increase in revenue from in-person gamblers compared to 2019. Despite the revenue growth, there are concerns about profitability due to rising expenses.
The chairman of the New Jersey Casino Control Commission, James Plousis, expressed optimism about the promising start to the summer season with strong consumer interest driven by recent investments in casino hotels. However, Jane Bokunewicz from Stockton University cautioned that while revenue has increased, expenses have also risen, potentially affecting the casinos’ profitability in the future. She highlighted the impact of inflation on both operators and consumers, noting that consumers continue to spend discretionary money at New Jersey casinos despite economic pressures.
Figures released by the New Jersey Division of Gaming Enforcement showed that the nine casinos won nearly $223 million from in-person gamblers in May, a 5.2% increase from the previous year. This type of revenue is considered the core business for casinos, as money from sports betting and internet gambling must be shared with third parties. Only three casinos – Borgata, Ocean, and Hard Rock – saw an increase in revenue from in-person gamblers compared to May 2019, raising concerns within the Atlantic City casino industry.
When sports betting and internet gambling revenue are included, Borgata, Golden Nugget, Hard Rock, and Tropicana were among the top earners in May. Borgata won nearly $111 million, while Hard Rock saw a 32.6% increase in revenue. Internet-only entities like Resorts Digital also experienced growth, with a 17.6% increase in revenue. The casinos and tracks took in nearly $839 million in sports bets in May, generating $78.7 million in revenue. Overall, the industry has seen over $6 billion in sports bets so far this year, with internet gambling bringing in $192 million in May alone.
Despite the challenges posed by rising expenses and inflation, the New Jersey gambling industry remains resilient, with strong consumer interest and revenue growth. The positive momentum seen in May is expected to continue throughout the summer season, driven by investments in casino hotels and the popularity of sports betting and internet gambling. While there are concerns about profitability in the future, the industry is optimistic about sustaining its growth and attracting more visitors to Atlantic City’s casinos and horse tracks.
