Approaching pre-COVID levels for New Jersey Gambling Sector
The Garden State’s gaming industry is still on its way to pre-pandemic figures according to the regular monthly report by New Jersey’s Division of Gaming Enforcement. August saw a slowing down compared with Q2 but this does not indicate that momentum has waned.
Revenue growth is still on the rise
The global economic climate has not been kind to many industries including the gambling sector. Compared to 2021 the total game revenue increased 10.1% in August, reaching $470.7 million. A positive note will be the 14.1% year-on-year growth compared to Q2.
The success of land-based casinos is undeniable, as they accounted by 4.4% or $274 million in profit over last year. Still below the total of $286 million in 2019 but shows definitely some recovery. The five casinos that recorded growth in the state were led by Bogata, with its $72 million increase from last year. Hard Rock, Ocean Casino, Resorts, and Bally’s also managed to stay in the safe zone. The remaining four venues were not as fortunate. Caesars, Harrah and Tropicana saw their earnings decline by double digits. The Golden Nugget experienced an 18.6% drop, the worst among any of these casinos.
With an increase in revenue of 16%, the iGaming sector is still lagging behind land-based casinos. However, this big difference may lead to a shift in customer sentiment.
On the other hand, the sports betting industry is booming! Results at casinos increased by 24.8% year-on-year to a revenue increase of $24.7 million.
The focus remains on land-based casinos
This summer should be great for the region and bring much needed momentum, according to New Jersey Casino Regulatory Commission Chairman James Prusis.
The state’s focus remains firmly planted on strengthening land-based casinos. In order to get a more accurate estimate of how much each sector contributes towards the state’s revenue, they should be able to rely on official statistics. These numbers can be unreliable because sometimes casinos only retain 30% profits from online games and sports betting which makes it difficult to calculate an exact contribution.
Jane Bokunewicz, director of the Lloyd Levenson Institute, suggested to The Associated Press that the move to iGaming would not necessarily be detrimental to land-based facilities. Many clients enjoy both online and in-person betting.
“A decreased reliance on exclusively in-person gaming activity has the potential to keep the New Jersey casino industry… more resilient to market disruptions…”
State officials are confident that the gambling sector will soon bounce back to pre-pandemic levels, even though August showed a slowdown in revenue growth.
With the continued efforts of New Jersey’s gambling industry, it is clear that this has had a positive influence. However, they’re still unsure about what will happen with regards to its future prospects.
The financial reports for Autumn will show if the recent lull in revenue growth is just a one-time occurrence or something more troubling.