Atlantic City Casinos Experience Haunting October as Gaming Win Falls 8.5%

Posted on: November 19, 2024, 08:28h. 

Last updated on: November 19, 2024, 09:32h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

Atlantic City casinos continued to see the market thin last month as in-person gross gaming revenue (GGR) fell 8.5% despite an unusually warm and dry October.

Atlantic City casino revenue New Jersey
October 2024 was ghostly for the nine Atlantic City casinos as in-person gaming revenue tumbled 8.5% to $208.7 million. In-person gaming win is down through 10 months of the year. (Image: Visit Atlantic City)

The New Jersey Division of Gaming Enforcement (DGE) reports that only three of the nine casinos — Borgata, Hard Rock, and Ocean — won more money from in-person gamblers last month than they did in prepandemic October 2019. However, even those three casinos saw retail GGR decline year over year, as Borgata’s $53.4 million represented a 6% decline, Hard Rock’s $40.8 million was down 1%, and Ocean’s $32.9 million represented a 24% drop from October 2023.

Just two casinos — Caesars and Tropicana — saw year-over-year in-person GGR improvements. Caesars’ $15 million was a 4.1% gain and Tropicana’s $17.6 million was 7.4% higher than a year ago.

Bally’s reported GGR of $11.5 million, down 7.8% year over year, Golden Nugget won $9.7 million, a 20.6% decline, Harrah’s won $15.8 million, down 11.5%, and Resorts’ GGR of $12 million represented a 9.2% drop.

Combined, brick-and-mortar casino revenue last month totaled $208.7 million. That’s almost $19.4 million less than what the nine properties won in October 2023.

Scary October

October marked the largest year-over-year GGR decline for in-person play this year. The month further pushed GGR down for the year as a whole.

Through 10 months, brick-and-mortar casino revenue reached $2.36 billion. That’s 1.6% lower or more than $38.7 million less than the same 10 months in 2023.

Despite a historically dry and very mild October, brick-and-mortar gaming operators in Atlantic City did not see strong gains over 2023, instead declining by 8.5% year over year,” said Jane Bokunewicz, director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism.

James Plousis, who chairs the New Jersey Casino Control Commission, which oversees the DGE, said that while in-person play remains a challenge for the nine casinos, last month marked the second-best October since 2013, aside from 2023.

Profits for the nine casinos through the first half of the year were down almost 5% from 2023 to $333.7 million. The trimmer profit margins came despite industrywide revenue, which, along with gaming, includes income from hotel, food and beverage, entertainment, and retail leases, climbing 1.5% to $1.6 billion.

Profit reports for the third quarter are expected later this month. October kicks off the fourth quarter, and the casino revenue numbers suggest it wasn’t a strong start.

Record iGaming GGR — Again 

The other side of the October gaming picture was iGaming, which continued to grow. GGR from online slots, table games, and poker rake totaled $213.6 million, a 28.1% surge from October 2023.

The $213.6 million won online is a new high for the New Jersey online gambling market. The previous record didn’t last long, as it was only set in September when iGaming GGR exceeded $200 million for the first time.

Sports betting revenue tumbled 16% to $77.4 million. Oddsmakers took over $1.13 billion in bets, down 13.3% from a year ago.

With iGaming and sports betting included in the Atlantic City casino revenue, October 2024 GGR climbed 2.6% to $499.8 million. But as the casinos continue to stress, much of their iGaming and sports betting win is shared with their third-party partners like DraftKings and FanDuel.