In May, New Jersey iGaming easily offsets land-based casino losses

The casino market is expanding, but Atlantic City casinos are declining. Last month (May 2019), land-based gambling revenue in Atlantic City fell by nearly 5% from May 2018 to $213 million for a variety of reasons, including: COVID-19. The industry earned 276.7 million dollars last month (35 percent more than usual), but because most gamblers now play online, it’s not enough to keep up with demand at traditional brick and mortar casinos like those in Atlantic City—even before they knew about the virus outbreak that has crippled some regions’ economies as well as tourism industries all over the world since then, much less n

Joe Lupo, president of Hard Rock Atlantic City Resort, has asked New Jersey’s Division of Gaming Enforcement (DGE) not to aggregate monthly gaming revenues. He claims that when a casino receives funds from interactive providers such as online poker or sports betting sites, which account for a sizable portion of their revenue, this is classified as “iGaming” and reported along with other sources such as slot machines.

Joe Lupo believes that grouping all casinos into each month’s performance would be misleading because iGaming accounts for so much more than just slots at his hotel resort—accounting for 62 percent last year alone.

Donnie Lupo, the mayor of Atlantic City, is fed up with the media exaggerating the city’s renaissance. “We need to see the city revitalised, and that isn’t going to happen when the media reports increases when they add in online revenue that is going to third-party companies that have no stake in this game,” he said earlier this year.

Mayor Donald A. Lupo understands how important New Jersey’s largest tourist destination is for a successful economic turnaround, but he doesn’t appreciate news outlets exaggerating its progress without understanding what really happens inside casinos or outside developments like hotels and restaurants across town as well as along nearby beaches like.

Chairman Positive

Despite Atlantic City’s GGR falling about 5% from May 2019, James Plousis announced last month that the city was doing well. According to Plousis, the casino industry’s total gaming revenue increased more than 26 percent in May 2019 compared to pre-pandemic May 2019. Casino wins accounted for 95% of these results, indicating that tourists are returning in large numbers and finding success at casinos throughout town.

With the elimination of the Atlantic City casino capacity limit, New Jersey casinos are expected to see increased revenues and increased business. June brings warmer temperatures as well as summer vacation for most households, which will only increase demand on hotel gaming floors.

May Countdown

Last month was an exciting month in Vegas! Customers won $213.1 million in brick-and-mortar casinos, a 26 percent increase from the previous May, when casinos were closed due to a strike. GGR from online casinos totalled $108.1 million (26 percent from mobile devices), with sportsbooks accounting for 52 percent. According to government figures released on Friday evening, MGM Resorts Borgata has the largest market share with its physical casino ($85.3M), online platform ($5,852K), and BetMGM sportsbook, making them king this June.”

Resorts was a distant second at $46 million, and Golden Nugget Online Gaming finished third with a total revenue of $44.2 million from this year’s market. According to The Atlantic Wire on June 12th, 2011, Hard Rock made $41.6 million, placing it fourth in gaming profits.

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