Casino Revenue Atlantic City
Atlantic City Casino Revenues Increase by 23%. Published by Sam February 15, 2020 Categorie(s): Casino News, Financial, International news. The impressive 23% Atlantic City casino revenue increase has made headline in the US gambling industry. The 23% has proofed that the industry in Atlantic City has started the year on the right foot. ATLANTIC CITY – Two reopened casinos and half a year of sports betting helped push Atlantic City’s casino revenue up 7.5 percent in 2018 to nearly $2.86 billion, state gambling regulators said.
The lights are still on inside Atlantic City casinos.
However, casino operators and state government officials around the country continue to grapple with the COVID-19 pandemic. The number of good options for mitigation seems to dwindle with each passing day. New Jersey casinos are by no means an exception to this new rule.
Although Atlantic City properties remain open with restrictions, it’s uncertain how much longer that will be the case. Relevant trends in the Garden State are going in the wrong direction.
The latest on Atlantic City casinos and COVID-19
NJ Gov. Phil Murphy has been upfront with his constituents on a daily basis about the worsening numbers in the state.
NEW JERSEY #COVID19 UPDATE:
➡️4,320 new positive cases
➡️293,744 cumulative total cases
➡️34 new confirmed deaths
➡️14,877 total deaths
The second wave is here. We MUST flatten this curve together. Wear a mask. Social distance. Wash your hands.https://t.co/JW1q8awGh7pic.twitter.com/konGYeQWK8
— Governor Phil Murphy (@GovMurphy) November 19, 2020
On Tuesday, Murphy signed a new executive order that lowered gathering limits for both indoor and outdoor venues. As of Nov. 23, New Jerseyians may only gather in groups of up to 10 indoors. For outdoor gatherings, the limit is 150 people. In both cases, the state expects proper social distancing and wearing of face masks.
As Atlantic City casinos are a significant source of tax revenue for the state and fuel the economy in the area, Murphy naturally had to address their fate. His main position is that data shows the casinos have been acting responsibly throughout the pandemic.
“We believe, based on the evidence that we have, that they’ve been able to responsibly manage their casino floors,” Murphy said during a briefing with other state officials on Wednesday. “Whether it’s through (personal protective equipment), whether it’s through dividers, capacity management, temperature checks, review of symptoms checks with people who go onto the floor, which is happening in all the casinos … there is not any evidence that there is either bad management of the floor or that there is a big outbreak coming from participating on the floor.”
Murphy did not elaborate on what evidence he drew that conclusion from. The most likely candidate is contact tracing for positive cases, which identifies the sources of transmission if done correctly.
The question is whether casinos can maintain their current status if trends continue to worsen. Casino operators seem determined to do all they can to maintain the reputation they have earned.
Casino industry not curtailing business
So far, none of the AC casinos have announced any major plans to further reduce their hours or offerings. A statement from the Casino Association of New Jersey mentions one adjustment, however:
“The Casino Association of New Jersey (CANJ) understands the administration’s concerns, and that is why the industry has taken extraordinary measures to safely welcome back thousands of hardworking employees and valued guests, while also helping to minimize the exposure of Atlantic City casino property guests, our employees and our local community to the COVID-19 virus.
“We will continue to work to give our guests the exciting experience they have come to expect from our first-class properties:
- Casino floor and gaming operations will remain open, uninterrupted, 24/7.
- Indoor dining outlets will remain open, closing between the hours of 10 p.m. and 5 a.m. ET, effective this Thursday, Nov. 12.
“As we see a rise in cases across New Jersey, we are focused on the health and safety of our employees, guests and fellow residents and will continue to work with AtlantiCare, our regional health care provider, as well as local and state officials, to refine and update our protocols as local and state mandates evolve. We remain dedicated to complying with, or exceeding, local or state-imposed mandates, restrictions and occupancy limits to try to maintain a healthy environment.”
Casino closings in other states
Despite those best efforts, Murphy’s hesitancy to close casinos for a second time this year may soon make him an outlier. Earlier today, Rivers Casino in neighboring Philadelphia closed.
The well-being of our Team Members, guests & the community is our top priority. We will be temporarily closed effective Fri, Nov. 20, to follow @PHLPublicHealth’s order to close public venues. We appreciate your support!
.
Gambling Problem? Call 1-800-GAMBLER. pic.twitter.com/HEPtOdWvXg
— Rivers Casino Philadelphia (@riverscasinophl) November 19, 2020
The City of Philadelphia announced “Safer at Home” restrictions that will be in place through Jan. 1, 2021. The list also includes:
- Indoor dining
- Theaters and museums
- Libraries
- Gyms and indoor exercise classes
For now, Rivers Philadelphia is the only Keystone State casino impacted. The other gaming halls are outside the city limits.
Casino Revenue Atlantic City Hall
Other states are taking a similar approach. In Michigan, all three Detroit casinos are closed for three weeks. Illinois has ordered casinos within its borders to close, too.
Additionally, Massachusetts has limited hours for its casinos.
As of now, Atlantic City casinos are still open for gambling.
Murphy might take smaller steps, like shutting down indoor dining, before closing AC casinos altogether. If there’s not a marked improvement in COVID-19 numbers soon, he may have few other choices.
July marked the first month that casinos in Atlantic City reopened. Many had questions as to how much money these gambling venues would earn once they began accepting guests again. This week, reports on casino revenue in Atlantic City for the month of July finally surfaced.
It should come as no surprise that revenue here dropped. Today, we’re going to look at exactly how much money these properties managed to bring in. We’ll also talk about how revenue figures here may change as time goes on.
Let’s get into it!
New Jersey’s Casino Industry is Now Up and Running Again
There’s no doubt that New Jersey has the biggest casino industry on the East Coast. Atlantic City has recovered since the economic recession in 2008 and is now home to some of the country’s best casino-resorts. Back in March, however, all of the casinos here were forced to shut down.
Atlantic City Movie
This proved to be devastating to the local economy. A huge number of residents in this city rely on casinos in one way or another. The casino companies here also began to suffer and many feared they would be forced to permanently shut down.
That didn’t prove to be the case. Governor Phil Murphy eventually gave these casinos permission to reopen over the Fourth of July weekend. The Borgata Hotel-Casino began operating again in late July, making it the final gambling venue in the city to open back up.
Intense safety measures are set inside all of these properties. Masks are required on the casino floor. Eating, drinking, and smoking are all prohibited. It seemed likely that visitation would drop with so many safety new rules set in place.
Casino revenue has been dropping around the country. That was particularly true over March, April, and May, when most casinos were closed. This week, we learned how much money Atlantic City’s casinos managed to bring in during the month of July.
Here’s where things stand.
Reports on Casino Revenue in Atlantic City Are Out!
Many had questions about how much money casinos in Atlantic City would make in July. Some had concerns that tourism rates would remain extremely low. Everyone knew that the casinos here would experience a dip in revenue earnings.
According to the New Jersey Division of Gaming Enforcement, casino revenue in Atlantic City dropped by 23% when compared to the same month in 2019. The casinos here managed to bring in just under $248.7 million last month. It’s a significant decline from the $323.3 million made a year ago.
This is not very surprising. As we already mentioned, the Borgata Hotel-Casino was only operational for nine days last month. The regulations we mentioned have also led to a significant drop in tourism, which negatively impacts revenue.
Jane Bokunewicz, coordinator of the Lloyd D. Levenson Institute for Gaming, Hospitality and Tourism at Stockton University, believes the figures represent a win for New Jersey’s casino industry.
“Even with public health precautions in place, there was great concern that patrons would not yet feel safe visiting the casinos in person, and there would be an extended ‘COVID drag’ on the industry,” Bokunewicz said. “Although total casino win for July was down, [the revenue report] shows that a significant number of gamblers were willing to play in person.”
Casino revenue figures likely won’t return to normal for at least a year. As time goes on, casino companies will likely focus more on their online gambling operations. More states are also beginning to take a closer look at the legalization of sports betting.
More States Are Looking into Sports Betting Legislation
Back in mid-2018, the Supreme Court struck down PASPA. This immediately gave every state in the country the ability to legalize sports gambling. It’s been more than two years, and 24 different states have legalized this form of gambling.
This is proving to be a hugely successful industry. Despite many sports being shut down for months, sports betting has been growing more popular. It’s been an important source of revenue for many casino companies.
State leaders recognize the revenue potential from this industry. For a time, it seemed highly likely that Massachusetts would legalize this form of gambling this year. To the surprise of many, the Massachusetts State Senate rejected the bills to legalize this form of gambling.
The same can be said for California. Gambling proponents have presented several bills to allow sports betting here. Unfortunately, state officials failed to come to a deal with Native American tribes on how to offer sports betting options. It now appears the state’s sports gambling plans will be delayed at least a year.
These delays won’t last forever. Most feel that sports betting will become legal in almost every state within the next few years.
Are you surprised to see casino revenue in Atlantic City drop by so much? When do you expect these figures to return to normal? Let us know in the comments section below.