The casino industry in Atlantic City maintained its stellar record at the beginning of 2020, with its gaming revenue continuing to increase for 20 consecutive months.
The nine casinos in the city reported a total gaming revenue of $270.5 million or more in January of 2020, which indicates an increment of $50 million. This translates to a 22.6 percent jump over the revenue accrued in January 2019 as per data by the New Jersey Division of Gaming Enforcement.
According to Steve Callender, Casino Association President and Eldorado Resorts’ Senior Vice President, Atlantic City had a promising start in 2020, and the city is continuing its winning streak with betting and tourism – the two key drivers of the state’s economy.
Revenue from table games, slots, sports wagering, and internet waging grew, while sports and internet wagering particularly did well to bolster the gambling industry in the traditional offseason.
Slot machine and table game revenues increased by 8.3 percent across the industry. Ocean Casino Resort and Hard Rock Hotel & Casino in Atlantic City accounted for most of the growth. These two properties, respectively, ranked sixth and third in terms of slots and table games revenue. Moreover, they reported a revenue increase of 36 percent as compared to the previous year’s numbers.
Terry Glebocki, Ocean Casino Resort’s CEO, stated that January of 2020 was their seventh consecutive month where double-digit growth was registered. Slot earnings shot up by a whopping 87 percent over January 2019 figures.
Steady rise in online gaming revenue
Online gaming revenue also saw a $21 million increase in January 2020, which translates to a 64 percent rise as compared to 2019 figures. January 2020 was also the first month to witness gaming profits of $55 million.
Online gaming revenues set new records in 2019 as well for a period of eight months. The total income for 2019 was $482.7 million, which itself was an annual record that indicated a 61.6 percent gain as compared to 2018.
Sports betting is a major contributor
The casino industry’s growth has been attributed to its ability to explore new avenues of growth and its symbiotic relationship with online sports betting.
Sports betting that encompasses brick and mortar casinos and online wagering registered $23.4 million in financial gains, which equated to a 139.9 percent increase for Atlantic City casinos. For New Jersey, sports betting revenue stood at $53.5 million, with a majority being reported by Meadowlands Racetrack and their online partners, PointsBet and FanDuel.
Parlays that are single bets wagered on multiple sporting event outcomes have become popular in New Jersey and act as a key revenue source. Parlay wins totaled $18.9 million in January of 2020.
Basketball witnessed maximum action with wagers equalling $177.4 million, which resulted in a $9.3 million gain for the bookmakers.
As per state gaming regulators, $540 million was wagered legally last month on sports on the back of basketball, NFL playoffs, and college football championship.
Sports betting experts believe New Jersey will continue to be a major challenger for Nevada and could even overtake it as the market leader.