Internet gambling in New Jersey reached a record high in August, bringing in over $198 million in revenue, a 28% increase from the previous year. This surge in online gambling revenue provided a much-needed boost to the Atlantic City gambling industry, which has been struggling due to the ongoing impact of the COVID-19 pandemic. However, while internet gambling thrived, the in-person gambling revenue at most of the city’s casinos continued to decline, with only three out of nine casinos experiencing an increase in revenue from physical gamblers compared to pre-pandemic levels in August 2019.
Despite the overall increase in revenue, the amount won by the casinos, horse tracks, and their online partners was just over $555 million in August, a 4.4% increase from the previous year. However, the casinos still view in-person gambling as their core business, as internet and sports betting revenue must be shared with outside parties. For two-thirds of the casinos, in-person revenue is still below pre-pandemic levels. The importance of internet gambling in supporting the resort was highlighted by Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, who noted that online gaming activity contributed nearly half of the total gross gaming revenue for Atlantic City operators.
While sports betting revenue was down nearly 35% in August, this was attributed to a statistical anomaly when compared to the exceptionally high numbers from the previous year. In terms of revenue from in-person gamblers, Borgata, Hard Rock, and Ocean were among the top performers, with increases ranging from 1.6% to 11.4%. When internet and sports betting revenue is included, several casinos saw significant growth, with Hard Rock experiencing a 21.5% increase and Golden Nugget nearly doubling their revenue. However, Resorts Digital, the casino’s online arm, saw a 30.2% decrease in revenue for the month.
In August, nearly $699 million worth of sports bets were placed in New Jersey, with the market shrinking due to Freehold Raceway stopping sports betting operations. This left only two horse tracks, the Meadowlands Racetrack and Monmouth Park, as the state’s remaining venues for sports betting. The parent company of Freehold Raceway, Penn Entertainment, did not provide a comment on the decision to end sports betting operations at the track. Despite challenges in the in-person gambling sector, the record-breaking performance of internet gambling in New Jersey continues to play a crucial role in supporting the Atlantic City resort and its casino operators.
