Ups and Downs for Atlantic City CasinosPublished November 28, 2015 by Elana K
Atlantic City casino posted losses in October 2015, while online casinos saw reasons to be hopeful.
According to the New Jersey Division of Gaming Enforcement (DGE), casinos in Atlantic City saw a decrease in revenue in the month of October 2015 when compared to October 2014, to the tune of 3.1%. But while traditional casinos have posted losses, online casinos have gained.
Traditional Casino Numbers
According to the reports from the DGE, the revenue from Atlantic City brick-and-mortar casinos in October 2015 was $191.6 million, and in 2014 it was $197.7. Caesars took the hardest hit, enjoying $30.2 million of revenue in October 2014, but only $22.6 million in October 2015 - a 25.2% decrease from year to year.
While experts blame the loss on seasonal changes, it doesn’t explain why this year’s seasonal changes affected the numbers more than last year’s.
Moreover, October 2015 was the first month when a year-on-year comparison was actually accurate; between January and September 2014, four venues shut down in Atlantic City, meaning the year-on-year analysis always had to be adjusted for this fact. The fact that October showed losses was not encouraging.
Online Casino Numbers
On the other hand, four online casinos - The Borgata, Golden Nugget, Resorts and the Tropicana - all posted better numbers this year than they did in 2014. And that is good news.
In October of this year, New Jersey’s online casino and poker sites brought in $12.9 million, up 8% from September’s ratings. The Golden Nugget saw the biggest jump in revenue: A whopping 170% revenue increase from month to month.
What Does This Mean For the Future of Atlantic City Casinos?
Atlantic City casinos have seen their fair share of ups and downs recently, especially online casinos, which were only legalized in New Jersey in November 2013. But because online gambling is still a relatively new venture, it is impossible to predict which way the wind is heading. One thing that experts agree on: Online casinos do not detract from brick-and-mortar casinos.