Atlantic City Casino Revenue Drops Following Cyberattacks

Article by : Erik Gibbs Oct 18, 2023

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In September, Atlantic City’s land-based casinos reported earnings of roughly $246.5 million, reflecting a 2.1% decrease year-on-year.

Despite this, the gross gaming revenue (GGR) from slot machines and table games at physical casinos in Atlantic City for the January to September period in 2023 was nearly 2% higher than the same period in 2022. Over the nine months, the total earnings of around $2.17 billion represent the best performance for the local gaming industry in a decade.

James Plousis, Chairman of the New Jersey Casino Control Commission, explained that last month’s land-based GGR would have been even better if not for the MGM Resorts cyberattack. MGM, the operator of Borgata, suffered a cyberattack in September that disrupted its operations and online services.

In September, the casino win in Atlantic City was adversely affected by a widely publicized cyberattack. Nonetheless, it marked the third-highest September result since 2012.

MGM’s Borgata casino experienced issues during the cyberattack, with many slot machines malfunctioning or being disabled. The gaming machines couldn’t print vouchers, and credit card machines were temporarily unavailable.

The attack also affected bookings, making it impossible for the Borgata website to process new reservations or changes to existing bookings, and digital room keys were inaccessible.

In contrast to the decline in land-based revenue, Atlantic City’s online gaming sector continued to perform strongly.

Online casinos earned approximately $163.8 million, marking a 21% increase from September 2022. Sports betting also saw record earnings of $111.1 million, with a 13% year-on-year increase, equivalent to $13.2 million. Online poker contributed an additional $2.4 million, representing a 5.5% growth.

When combined, New Jersey’s commercial gaming industry posted a total gross revenue of $521.45 million in September 2023, reflecting a year-on-year increase of 7.5%.

Plousis expressed optimism about the state’s gaming industry and Atlantic City as winter approaches, citing the combination of in-person experiences and online offerings as a resilient and promising mix for the region.

Bader Field, the city’s former airport, has been idle since 2006. DEEM Enterprises, comprising New Jersey businesspeople and investors, has received authorization from the Atlantic City government to develop a plan for the site’s redevelopment.

DEEM’s proposal envisions a multibillion-dollar commercial and residential complex featuring a 2.4-mile racetrack.

Mayor Marty Small Sr., as well as the Atlantic City Council, selected DEEM to redevelop the city-owned land in March.

DEEM has requested an extension to its six-month project timeline, as the final scope requires approval from New Jersey lawmakers, who maintain official control over Atlantic City’s governance.