For the first time in a decade, Atlantic City casino revenues rose in 2016, due specifically to a significant jump in online gambling revenue.
According to the New Jersey Division of Gaming Enforcement 2016 Gaming Revenue Results released Thursday, Atlantic City’s brick and mortar casinos posted a total win of $2.406 billion in 2016. This was down 0.3 percent from $2.414 billion in 2015.
However, thanks to a $196.7 million internet gaming win, a 32.1 percent increase over 2015, the total industry win reached $2.603 billion. This represents a 1.5 per cent increase over 2015 and the first positive numbers for the industry in ten years.
Pulling Out of a Decade-Long Slump
In January 2016, the UNLV Center for Gaming Research released a report showing that Atlantic City casino revenues have fallen steadily by more than 50 percent since reaching a record-high of $5.2 billion in 2006.
Now ten years later, the industry has finally been able to turn the numbers around, and it is the new online casinos that have led the way.
Borgata Casino and its subsidiary online gambling sites earned $47,015,036 in 2016, leading the online segment of the industry. The Golden Nugget was next with $42,249,830. Caesars Interactive NJ, which includes the 888 online casino, earned $38,699,334, while Tropicana and its subsidiary online gambling sites earned $36,983,288. Finally, Resorts Digital, which owns and operates Resorts online casino in partnership with Atlantic City’s first legal brick and mortar casino, posted a $31,761,839 internet gaming win.
Borgata Tops Brick and Mortar Landscape
When it comes to brick and mortar casinos, Borgata continued its stranglehold on the Atlantic City market in 2016, posting a $722,772,248 casino win, more than double its nearest competitor. Borgata’s numbers were up 3.8 percent over the $696 million the property posted in 2015.
New Jersey lawmakers made in-state online gambling legal in New Jersey in 2013 in an effort to turn the fortunes of the Atlantic City casino industry around. The almost $200 million in iGaming revenues posted this year is close to double the amount recorded in the first year of legal online gambling in New Jersey and all signs indicate that plan is now working.
The New Jersey government’s take was eight percent of gross casino revenues and 15 percent of gross internet gaming revenue, which equaled a little more than $205 million in 2016.