Online Casinos Prove a Lifeline in Atlantic CityPublished December 21, 2015 by Lee R
Land-based casinos in New Jersey are struggling, and without online revenue, they cannot survive.
By a seeming miracle, tanking casino revenues in struggling Atlantic City have risen, reportedly with online gambling to thank.
Slight Rise is Huge
The rise was not even 1%, but in a sector that was threatening to go under, any improvement is an unexpected sign of life. Or was it?
Atlantic City has eight casinos, all of whom saw their winning increase by less than 1% in November, which would have been a down month if not for the boost contributed by online gambling.
According to figures released by the New Jersey Division of Gaming Enforcement, New Jersey casinos took in $204.3 million in November, showing an increase of 0.9 percent from Nov. 2014.
The reports also indicate that online gambling is a rare if not singular glimmer of hope in a casino market that remains precarious as it struggles regain its balance after to the shut-down of four of the city’s 12 casinos last year, a full third of the market.
How Online Is Keeping AC Afloat
In a state where US online casinos such as 21 Dukes and Las Vegas USA Casino are popular, the amount of money won from gamblers at land-based casinos was still down 1.4 percent. However, online play carried the day by posting an increase of 51 percent in revenue, totaling $13.2 million in revenues for November, compared with $8.7 million in November 2014.
Matt Levinson, chairman of the New Jersey Casino Control Commission chairman Matt Levinson directly credited “a healthy increase in Internet gambling” for turning the potential negative month into a positive one. He identified areas for improvement in online gambling as the small decrease in slot machine revenue, and an unfavorable calendar in which November contained only four high-play Saturdays in 2015 compared with five last year.
The bigger question is whether online gambling can increase its market share of gambling in New Jersey, because the remaining land-based casinos need some help, no matter what part of the state they are located in.