Atlantic City Gaming Revenue Rebounds in August

Article by : Erik Gibbs Sep 19, 2023

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The tides favoured the casino industry in August, as the nine brick-and-mortar casinos in the region reported a collective win of $280.2 million.

Slot machines were the driving force behind this resurgence, with a 3% increase in terminal hold, while table games held steady compared to August 2022.

This $280.2 million in land-based Gross Gaming Revenue (GGR) marks the second-highest retail figure for August over the past nine years. The slot revenue of $210.5 million reached its highest level for an August since 2013.

The realm of iGaming continued its impressive growth trajectory, with interactive games raking in $155.2 million from remote players, an 18% improvement from the previous year.

Meanwhile, the odds favoured the oddsmakers, who saw a substantial profit of $96 million from the $725.9 million wagers, marking a 47% increase from August 2022.

New Jersey’s gaming industry, already one of the top three in the country alongside Nevada and Pennsylvania, continued its upward trajectory.

The combined revenue generated by Atlantic City’s casinos, iGaming platforms, and sportsbooks reached approximately $531.6 million, reflecting a nearly 13% increase compared to August 2022.

This figure marked the second-highest monthly GGR in the state’s gaming industry history, with Atlantic City’s total gaming revenue surpassing $500 million for the second time ever.

The summer season has proved particularly fruitful for the state’s gaming establishments, with a total win of $1.49 billion from June through August. This represents a 10.5% surge compared to the same period in 2022.

While the gaming revenue continues to ascend, there is a more nuanced picture of Atlantic City’s casinos. They contend that the portrayal of the industry’s health by media and public statements is somewhat misleading.

The casinos assert that since they share a substantial portion of their monthly iGaming and sports betting revenues with third-party partners such as DraftKings and FanDuel, the monthly revenue reports must accurately reflect their performance.

Despite an overall GGR increase of over 11% year-to-date, brick-and-mortar revenue for the first eight months of 2023 only rose by 2.3% compared to the same period in 2022. Additionally, inflation and higher labour costs have affected their profit margins.

In sum, while the industry’s revenue numbers continue to climb, the landscape is complex, with various factors impacting the bottom lines of these casinos, making their financial health a more intricate narrative than meets the eye.