New Jersey posts slow July for Atlantic City's brick-and-mortar casinos

The New Jersey Division of Gaming Enforcement (DGE) has released the full results for the month of July, reporting that Atlantic City’s casinos saw a small contraction of their revenues compared to a year before.

Brick-and-mortar sector slows down in Atlantic City

According to DGE’s report, the brick-and-mortar sector saw $272.3m in gross gaming revenue (GGR), which was down 6.1% compared to July 2023. Part of this decline was caused by a collapse in the slot segment, with Atlantic City casinos reporting a 5% decrease in the amount won from slots.

However, the overall industry results held strong, and the aggregate results, combining brick-and-mortar, digital, and betting revenues hit $547.75m, up 8% from July 2023.

Yet, table games took an even stiffer hit, and reduced their overall wins by 10% to $65m during the month. Overall, the DGE reported that this summer has been slower for casinos compared to the summer of 2023, and based on the collective data from June and July. Compared to last year, overall gross gaming revenue is down about $15.1m in the brick-and-mortar segment.

The decline in footfall on gaming floors and fewer holidaymakers have contributed to these results. Part of the decline could be rooted in fears over recession, with the Bureau of Labor Statistics revealing information about the increase in unemployment a few months ago.

Looking at the top-performing properties, Hard Rock managed to inch up 3% to $54.6m in GGR. Resorts and Golden Nugget also notched up incremental gains, which fits with the broader explanation that visitors may be opting for smaller and arguably cheaper venues as they tighten the purse strings.

Meanwhile, the Borgata, a lode star among Atlantic City casinos reported a contraction of 3% to $75.9m during the month, which is to be expected. Other casinos also saw similar contractions, including Tropicana which fell to $23.1m and Caesars which took a financial drubbing with a 20% collapse in its revenue, to just $19.9m in July.

Overall, Atlantic City does well and grows once more

The brick-and-mortar sector has indeed suffered, although it was propped up by somewhat decent online gambling results. Atlantic City’s casino apps and websites raked in $195.4m, which was a notable 26% jump from 2023, accentuating a stronger iGaming trend among businesses and players.

Sports gambling – both online and retail – was also up by 31% year-over-year, the DGE said, and revenue there hit $80m. All these results put together actually saw the total revenue hit $547.75m, up 8% from last year, despite the moribund land-based sector.

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