Summary: Atlantic City casinos boosted their gaming revenues in 2017 with $2.65 billion in GGR from New Jersey players. That marks a 2.2% increase from $2.6 billion in 2016.
December 2017 ranked poorly in terms of monthly gambling performance for the year. It came in at #5 of #12 for 2017. The online gambling industry raked in $20,757,645, of which online casino operators generated the lion’s share with $18,820,584. Though of course gambling performance differed by region.
Online poker revenues were substantially lower at $1,937,061 for the month. Among the leading operators year-on-year, was WSOP NJ and 888 poker NJ which generated steady revenue streams in December, for a solid performance in 2017. Year on year, December’s revenue stream was up 12.9%, lackluster by all accounts.
But the big picture with Atlantic City remains positive. 2016 and 2017 represented strong gains for the East Coast gambling enclave. The 7 casinos that pepper the Atlantic City Boardwalk, in tandem with their online casino operators managed to raise revenues by $50 million year on year. Much of this success can be attributed to an inincrease in the use of technology by casino and online gambling companies.
The increase in GGR is particularly notable in that it marks the first time in a decade that increases have taken place. Of that gambling revenue, land-based casinos accounted for $2.41 billion, while online casinos generated $245.6 million. The percentage increases in the respective sectors were 0.3% and 24.9%.
It is worth pointing out that 2% of all gambling revenues, accounting for $54 million in 2017 were generated through poker gaming. New Jersey is gearing up for a bumper year in 2018, given that the Revel Casino (it closed in 2014) is likely to reopen in summer, and the Hard Rock (formerly the Trump Taj Mahal) Hotel & Casino will likely make a summer debut as well.
Several years ago, Atlantic City was home to 12 prestigious land-based casinos, but lack of business and intense competition from neighboring states caused the shuttering of 5 of them. At the time, some 11,000 jobs were shed as the industry tightened the screws to remain profitable. It is widely believed that the current number of casinos is optimal for Atlantic City.
The Top-Performing Casinos in Atlantic City
Spearheading the list of best-performing land-based casinos is the Borgata. 2017 was its best year on record. The Borgata generated $800 million in GGR in 2017. It recorded a winnings increase of 4.4% over 2016, and prospects are strong for the current year. In second place is the iconic Tropicana Hotel – an establishment that was staring down the barrel several years ago. Tropicana’s management has adopted a successful turnaround strategy that has resulted in years of success of growth and gains. The Tropicana reeled in $390 million in GGR in 2017, up 14.6% year on year.
In third place was Harrah’s Casino and Hotel with a handsome $363 million in GGR. This amounted to a 1.6% year on year increase. In fourth place was Caesars Casino with $325 million in gross gambling revenue, for a 7.6% year on year increase. While the Golden Nugget reported strong year on year increases of 14.4%, its total GGR was $288 million.
In sixth place was Bally’s casino with $211 million in gross gambling revenue, up marginally from 2016. The worst performing casino of the 7 operators was Resorts Casino with a strong 10% year on year increase and gambling revenues of $190 million.
James Plousis is Impressed
The chairman of the NJ CCC (New Jersey Casino Control Commission) is heartened by the performance of the casino industry, notably online casino operators. According to James Plousis, ‘… Total Internet win had its fourth straight year of double-digit increases… It shows an industry that is getting stronger… and well positioned for the future.’
Regulators agree that the slimming and trimming that has taken place with New Jersey land-based casinos has helped the industry to snatch victory from the jaws of defeat. The leaner market has resulted in the same number of players frequenting 7 casinos instead of 12. This has increased the profitability of these operators. As mentioned, 2 of those 5 casinos that shuttered are likely to reopen by summer of 2018.
This means that demand will have to keep pace with the 28.57% increase in supply. There is no consensus about the impact of adding 2 additional casinos to the mix. Some gambling analysts believe that the healthier economy can sustain and support these new business ventures, while others believe it may drop profits at the other 7 casinos.
The Top Ranking Online Casino Operators by GGR in 2017
Nonetheless, there is unanimous agreement that online gambling activity has helped to boost the New Jersey casino industry immensely. The 25% year on year increase is remarkable, especially at a time where multiple states are considering legalizing online casino games in some form or another. The best-performing online gaming revenue stream came from the Golden Nugget with $68.5 million for 2017, followed by the Borgata, Caesars, Resorts Digital, and Tropicana with revenues between $42.5 million apiece and $48.5 million apiece.
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