Jane Bokunewicz, faculty director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism (LIGHT), Stockton University School of Business, reported on the December 2024 and year-end gross gaming revenue numbers released Thursday by the state Division of Gaming Enforcement:
In 2024, Atlantic City’s casino operators set a record industry high for total annual gross gaming revenue, surpassing last year’s record high of $5.24 billion by 8.7%. 2023 was the first time the industry exceeded the 2006 peak of $5.22 billion, although market conditions have evolved considerably since then.
Strong wins in internet gaming revenues drove the city to its eighth consecutive year of year-over-year total gross gaming revenue growth (exempting 2020/the pandemic), even as the mature brick-and-mortar market remained essentially flat following the pandemic’s disruptions. Gross gaming revenues however, are an imperfect predictor of the overall performance of an industry that incorporates so many additional experiences and amenities beyond gaming. We will have a better idea of the industry’s overall performance and its impact on the regional economy when the fourth quarter and year-end net revenue reports are released this spring.
The December calendar did not fall favorably this year for Atlantic City operators, impacting comparisons of brick-and-mortar gaming revenues year-over-year for the month — which were essentially flat with a 0.3% decline year-over-year ($231.7 million in 2024 compared to $232.4 million in 2023). Internet gaming, which does not seem to be impacted by the number of weekends in the month in the same way that in-person gaming is, predictably showed a year-over-year increase for the month (26.5%). At $228 million, internet gaming realized its fourth consecutive month of greater than $200 million in revenue, and surpassed October 2024 ($213 million) and November 2024 ($214 million) to set a new single-month record. A 42.1% decline in year-over-year December sports wagering revenue for Atlantic City operators does not seem to have negatively impacted their overall gaming performance for the month. December 2024 was the strongest December in recent history in terms of total GGR – increasing 5.4% over December 2023.
Notably, Atlantic City sports wagering gross revenue increased 4.5% for the year-ended 2024 compared to 2023, and the sports betting industry overall (including racetracks) saw a 6.7% year-over-year increase in handle (the amount of money wagered by gamblers at New Jersey sportsbooks) at year-end 2024 compared to 2023. This seems to indicate that this form of gambling activity has not yet peaked.
New Jersey was a fast mover when it came to innovative new gaming products, such as internet gaming, and the state seems to be reaping the benefits of this. The industry is evolving and changing. These new products are very popular and do not seem to have reached their peak. At the same time, brick-and-mortar revenues have been relatively flat. They are not showing signs of proportionate decline, which we’d expect if cannibalization were an issue.
There appears to be an opportunity for both brick-and-mortar and online offerings to shape the future of Atlantic City’s casino gaming industry, but operators will need to stay on top of emerging trends and responsive to changes in customer preferences. Continuous innovation and reinvestment could be the “new normal” for the industry, which can no longer rely on established ways of doing business.
Mindful of challenges on the horizon with incoming competition from New York, operators continue to invest in their properties and in-person gaming experiences to offer a world-class destination for patrons. While these investments may not translate into immediate profit gains, they could be seen as a safeguard against future market competition and disruption.
Beyond the performance and actions of the casino gaming industry, a concerted citywide effort to “up its game” in appealing to visitors is underway and will likely be critical to the resort’s future prosperity.
To access more business news, visit NJB News Now.
Related Articles: