Findings summarized:
Updated Tack on New Jersey's Sports Betting Revenue Plunge
It's a rough ride for New Jersey's sports betting industry in June 2024. The gamble didn't pay off as expected, with casinos witnessing a staggering 24% drop and overall state revenue taking a 9.5% hit. The New Jersey Division of Gaming Enforcement's numbers paint a dismal picture, reporting sports betting revenue at the state's nine casinos plummeting to $27.1 million last month, a significant drop from $35.4 million a year prior. Including revenue from horse tracks, the total sports betting revenue for June clocked in at $60 million.
- Rolling the Dice on Sports Betting Revenue Experts agree that this decline in sports betting revenue could be due to the unpredictable nature of gambling winnings and the odds set by bookmakers. Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, explained that while some casinos and racetracks saw declines, others reported increases, a typical pattern in the gambling sector.
Mark Giannantonio, president of Resorts Casino and the Casino Association of New Jersey, echoed this sentiment, attributing the drop to "poor luck." Resorts Digital, affiliated with DraftKings, experienced a steep 43.3% decline, falling to $14.3 million. Resorts' physical casino also took a hit, dropping by 34% to just over $99,000. Ocean Casino's sports betting revenue swung from a positive $82,000 last June to a loss of $18,725 this year. Monmouth Park Racetrack reported a 37% decline in sports betting revenue, totaling $904,000.
Despite these setbacks, some casinos bucked the trend, posting impressive revenues. Bally's saw a remarkable increase of over 440% in sports betting revenue, reaching nearly $1.9 million. Hard Rock nearly doubled its revenue to $4.6 million.
Shaking the Dice for the Whole PictureWhen considering the big picture, the top performers in June 2024 included Borgata with $110 million, up 5.7%; Golden Nugget with $64.2 million, up nearly 20%; and Hard Rock with $63.7 million, up 24.4%. Ocean Casino reported a marginal 0.4% decrease to $39.6 million, while Tropicana saw a 30.7% increase to $38.5 million. Caesars and Harrah's reported decreases of over 11% and 8.8%, respectively.
"At the end of the day, there will always be some variability by nature in gambling activity," said an industry insider.
Keeping an Eye on the Casino Scene
Casino operators are understandably concerned about their core business, which revolves around winnings from in-person gamblers. Only Ocean and Hard Rock brought in more from in-person gamblers this June compared to June 2019, underscoring the ongoing challenges for the Atlantic City casino industry and its parent companies.
These trends could have broader implications for future investment strategies in New Jersey's gambling sector. As the industry grapples with fluctuating revenues and shifting market conditions, stakeholders will closely monitor upcoming performance metrics and adjustments in gaming regulations. The future of New Jersey's sports betting industry may yet roll in its favor.
- Online casino games and sports betting continue to remain a significant aspect of the Atlantic City gambling scene.
- Market analysis indicates a faltering trend in sports betting revenue for June 2024, with an overall drop of nearly 24% in sports betting revenue for the nine casinos, totaling $60 million.
- Among the casinos, some experienced a steep decline in sports betting revenues, such as Resorts Digital which saw a 43.3% dip, and Ocean Casino posting a loss of $18,725 compared to a positive $82,000 in June 2023.
- Despite the overall decrease, some casinos bucked the trend, with Bally's reporting an over 440% increase in sports betting revenue and Hard Rock nearly doubling its revenue.
- The performance of certain casinos in June 2024 like Borgata, Golden Nugget, and Hard Rock showcased positive growth, with Borgata leading the pack with a 5.7% increase, Golden Nugget recording a nearly 20% rise, and Hard Rock seeing a 24.4% surge in revenue.
- The drop in sports betting revenue could have implications for the broader Atlantic City casino industry, as stakeholders consider investment strategies and potential adjustments in gaming regulations due to the market's fluctuating revenues and evolving conditions.
- The future of New Jersey's sports betting and casino industries may require close examination in months to come, as operators strive to maintain and grow their core business amidst this volatile market landscape.
