Atlantic City Casinos Ride the Digital Wave to Recovery

The seaside gambling hub of Atlantic City is experiencing a resurgence after a prolonged period of decline, largely attributed to the expansion of internet-based gaming in the Garden State.

Although statewide gambling proceeds in New Jersey saw a marginal uptick of 1.5% in 2016, representing the first instance of industry growth in a decade, Atlantic City’s casinos witnessed their gaming income climb for the first time since 2006. This revival was propelled by the flourishing digital gaming sector in New Jersey.

The seven remaining gambling establishments in Atlantic City collectively amassed $2.6 billion in gaming proceeds in 2016. To provide context, back in 2006, when Atlantic City boasted 12 casinos, the aggregate revenue reached a zenith of $5.2 billion.

The true standout performer was New Jersey’s internet-based gambling industry, which amassed a remarkable $1.97 billion in 2016, a substantial 32% surge compared to 2015. This upswing was primarily driven by a 36% increase in virtual casino game revenue, reaching $1.7 billion, while online poker revenue also experienced a respectable 11% rise, hitting $26.5 million.

However, it’s noteworthy that if one were to solely consider revenue from physical casinos, there was actually a minor decrease in 2016. This figure also excludes the $65 million revenue shortfall from the now-defunct Taj Mahal casino. In reality, only two casinos underwent a revenue dip in 2016, with Harrah’s Casino experiencing a $1.6 million reduction, bringing its total to $358 million. Absent the boost from internet-based gambling, the market would have undergone a 0.3% year-over-year decline.

The New Jersey gambling sector, particularly in Atlantic City, had been severely impacted in recent years, with the closure of five casinos leading to the loss of at least 11,000 jobs. However, the remarkable and sustained expansion of New Jersey’s internet-based gambling industry, now a national frontrunner, has injected a much-needed dose of optimism into Atlantic City’s casinos, setting the stage for a potential revitalization.

Adding to the encouraging news, Pennsylvania, the nation’s second-largest gambling market, is also forecasting a 1% revenue increase, reaching $3 billion…

The gaming sector experienced a surge in 2016, generating a substantial $2 billion. Nevada, renowned for its opulent gambling establishments, displayed indications of a rebound. For the initial period since the 2008 economic downturn, the state’s casinos declared earnings, suggesting that fortune was once more in their favor.