The Division of Gaming Enforcement in the Garden State has released the latest numbers for May, reporting an overall increase of 9.4% in gross gaming revenue, which sat at $471 million for the month. The Monday report took stock of the industry’s current pain points in terms of revenue, and the verticals that have been improving steadfastly all the same.
New Jersey’s Shaky In-Person Recovery
Casinos in Atlantic City reported an annual 2.4% decline in the revenue won from gamblers who visited the venues in person. The gross gaming revenue from that particular vertical sat at $227.3 million, which is a reason for concern and a sign of missing recovery according to casinos.
This was highlighted by the fact that only three casinos managed to win more money from in-person gamblers than they did in May 2019, the period used as a reference as it harks back to the pre-pandemic. The latest results were not left in a vacuum and elicited commentary by industry experts who have been following the market for a very long time.
One such is the director of the Lloyd Levenson Institute at Stockton University, Jane Bokunewicz, who said that although in-person gambling revenue was down, it was still higher than in May 2019. This discrepancy has to do with the amounts wagered and won at the leading venues.
Bokunewicz acknowledged that there are greater incentives for players to try out new products, and she said that traditional segments such as slots and table games were indeed not keeping up in terms of how fast they grew.
This hints at a lasting change in consumer behavior as casino patrons have made these newer products part of their regular casino experience.
Director of the Lloyd Levenson Institute at Stockton University, Jane Bokunewicz
Internet Gambling and Changing Consumer Habits
New Jersey Casino Control Commission chairman James Plousis was of a similar opinion, arguing that iGaming and sports betting have been viable parts of the industry, helping prop up results and to an extent mask the slow recovery in the Garden State. He said that it was not all bad news though, as Atlantic City’s total gross gaming revenue hit $2 billion faster than any other year in the past decade alone.
Of course, there are those who have sounded an alarm and said that internet gambling revenue should not be taken at face value and that a lot of the income generated this way was split with third parties, such as the companies that run the technical platforms for online gaming and sports betting.
Overall, Borgata managed to top the gross gaming revenue results for May with $111 million, combining all relevant verticals, to wit casino, internet, and sports betting. The Borgata was followed by the Golden Nugget with $56.2 million and Hard Rock with $48.1 million. These three venues also managed to inch up slightly in terms of how much they won in May compared to a year ago.