November marked another record-breaking month for New Jersey’s internet gambling industry, with revenues hitting an all-time high of $214 million.

Despite this surge in online activity, physical casinos in Atlantic City continue to struggle, with six out of nine failing to reach pre-pandemic in-person revenue levels.

The numbers, released by the New Jersey Division of Gaming Enforcement, illustrate a stark contrast between the growth of digital platforms and the stagnation of brick-and-mortar operations.

Online Revenue Soars, Breaking Records

For the third consecutive month, New Jersey’s online gambling market crossed the $200 million mark. November’s $214 million narrowly surpassed the previous record of $213 million, set just a month earlier.

The digital sector has consistently outperformed expectations, becoming a cornerstone of the state’s gaming revenue.

James Plousis, chairman of the New Jersey Casino Control Commission, described the performance as transformative.

“The continuing success of online gaming and sports wagering has helped total gaming revenue achieve its best November monthly result in over a decade,” he said.

This growth reflects a long-standing New Jersey trend accelerated by the pandemic. When casinos closed for months in 2020, players migrated to online platforms.

Many have continued to prefer the convenience and accessibility of digital gambling, even as physical casinos reopened.

The Physical Casino Struggle

While online gambling thrives, Atlantic City’s physical casinos have yet to regain their pre-pandemic momentum.

Collectively, in-person gambling revenues totaled $223.9 million in November, matching levels from the same month in 2019.

Nevertheless, only three casinos—Hard Rock, Ocean, and Resorts—surpassed their pre-pandemic earnings. Resorts’ increase was marginal, highlighting the ongoing challenges traditional establishments face.

Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, noted the disparity. “While online revenue is a game-changer, the heart of Atlantic City’s casinos lies in their physical locations. The shift in consumer habits poses a challenge to traditional models of operation.”

For many operators, in-person gambling remains critical, as online profits are often shared with technology partners and sportsbooks.

“It’s not just about the revenue numbers,” said an industry insider. “It’s about the profit margins, and in-person gambling typically delivers higher returns for casino operators.”

Casino-by-Casino Breakdown

A detailed breakdown of November’s performance highlights significant variances among Atlantic City’s casinos:

• Borgata led with a combined revenue of $122.6 million, up 25 per cent from the previous year. It also reported $57.5 million in in-person revenue, an increase of 11.4 per cent.
• Resorts earned nearly $101 million, marking a 28 per cent jump overall, with in-person revenue rising roughly 12 per cent.
• Golden Nugget saw total revenue of $77 million, up 26 per cent, while its in-person revenue grew by 6.7 per cent.

Conversely, some casinos experienced declines:

• Tropicana reported a 7.3 per cent drop in in-person revenue.
• Caesars saw its in-person earnings decrease by 7.4 per cent.
• Bally’s experienced a 10.3 per cent decline in in-person gambling revenue.

These figures reflect an uneven recovery, with some casinos adapting to new consumer preferences more effectively than others.

Performance Analysis and Future Trends

Borgata

Borgata’s sustained growth suggests a strong foothold in both digital and physical markets. With its high-end amenities and targeted marketing strategies, Borgata will likely remain a leader.

Its focus on retaining high-value customers, particularly in in-person gaming, could drive further growth. Online revenue is expected to surpass $70 million monthly by late 2024, primarily as online gambling markets expand.

Resorts

Resorts’ success in sports betting could propel it further. If the upward trajectory continues, Resorts might see total revenue surpassing $120 million monthly by mid-2024.

Investments in upgrading physical facilities and leveraging DraftKings’ technology could further enhance its market position.

Golden Nugget

Future Trends: Golden Nugget’s focus on online gaming suggests it will continue to capture a significant portion of New Jersey’s digital market.

By 2025, online revenue could account for more than 85% of its total revenue, potentially reaching $90 million monthly if current trends persist.

Hard Rock

Hard Rock’s strong brand recognition and customer loyalty will likely keep its in-person numbers steady. Online revenues are expected to grow, possibly exceeding $30 million monthly by late 2024.

Diversification into live dealer games and exclusive online experiences could be key growth drivers.

Ocean: Consistent Yet Conservative Growth

Ocean’s reliance on in-person revenue might limit its growth potential in the increasingly digital-focused market.

Ocean may need to expand its online gaming portfolio to remain competitive aggressively. Without significant digital investments, its total revenue will unlikely exceed $50 million monthly in the next two years.

Bally’s: Challenges Persist

Bally’s posted $24.5 million, up over 24% from last year, but its in-person revenue of $10.8 million marked a 10.3% decline, highlighting ongoing struggles to attract foot traffic.

Bally’s faces significant challenges in its physical operations. If it fails to modernize and attract younger demographics, in-person revenue may decline by 5–10% annually. Its online platform, however, shows potential for growth and could account for over 70% of total revenue by 2025.

Tropicana and Caesars: Declining In-Person Revenue

Tropicana reported $16.6 million in in-person revenue, down 7.3%, while Caesars earned $16.5 million, down 7.4%. These declines are troubling signs for casinos heavily reliant on physical operations.

Both Tropicana and Caesars must prioritize digital transformation to reverse their declining numbers. Tropicana’s online platform could potentially grow by 15–20% annually, reaching $25 million monthly by 2025.

Caesars may need strategic partnerships or exclusive online offerings to regain momentum.

Harrah’s: Mixed Performance

Harrah’s faces a similar trajectory as Tropicana and Caesars. Without substantial investment in digital gaming or in-person innovations, its overall revenue could stagnate, remaining below $20 million monthly into 2025.

Sports Betting: A Growing Powerhouse

Sports betting continues to thrive, contributing nearly $119 million in revenue from $1.2 billion in bets during November.

This sector has become vital to New Jersey’s gaming landscape, supported by strong partnerships and expanded market access.

The Meadowlands Racetrack, home to a FanDuel sportsbook, led the way with $50.5 million in sports betting revenue. Resorts, allied with DraftKings, almost doubled its sports betting revenue compared to the previous year, earning $38 million.

Monmouth Park also reported impressive growth, generating $2.5 million in sports betting revenue—a 163 percent increase from the previous year.

The closure of sports betting operations at Freehold Raceway in the same county likely contributed to Monmouth Park’s success.

“Sports betting has been a transformative addition to our revenue streams,” said a spokesperson for Monmouth Park. “With fewer competitors and a loyal customer base, we’ve seen significant growth.”

The Broader Impact of Online Gaming Growth

Combined, revenue from legal internet gambling, sports betting, and in-person operations totaled $556 million in November, a 15.4 per cent increase from the previous year.

This robust performance was partly attributed to favorable calendar conditions, including two additional weekend days compared to November 2023.

“The pandemic didn’t just accelerate online gaming—it changed the way people think about gambling entirely,” said Bokunewicz. “What we’re seeing now reflects long-term behavioral shifts.”

These trends underscore the need for casinos to innovate while addressing challenges within their core operations.

Challenges for the Future

Despite the impressive growth in digital gaming, physical casinos face significant hurdles. Operators must balance investments in technology with the need to revitalize their physical spaces. For some, this means reimagining the in-person casino experience to attract a broader audience.

James Plousis emphasized the importance of adaptation. “Atlantic City’s success depends on its ability to innovate. The industry needs to embrace change while preserving the unique experience that in-person gambling offers.”

Industry experts agree that striking this balance is critical. “It’s not enough to rely on digital growth,” said a gaming analyst. “Physical casinos need to offer something compelling—new attractions, entertainment options, or dining experiences.”

A Dual Landscape: Online vs. Offline

The rise of internet gambling has redefined New Jersey’s gaming industry, creating a dual landscape where digital platforms thrive while physical casinos face headwinds.

Leaders like Borgata, Hard Rock, and Ocean continue to innovate, but the pressure to adapt is high for all operators. However, when picking a legal casino, this platform mentions that DraftKings was the highest-paying one, with a record $1,280,196.33 on August 10, 2024.

“The numbers tell two stories,” said Plousis. “One of remarkable growth in the online space and another of resilience and opportunity in physical locations.”

As the industry navigates these challenges, today’s decisions will shape its future for years to come.

Conclusion: Betting on the Future

New Jersey’s internet gambling sector continues to break records, showcasing the potential of digital platforms to drive growth. At the same time, the struggles of Atlantic City’s physical casinos highlight the need for transformation.

With strong foundations in online gaming and sports betting, New Jersey’s gaming industry is poised for continued success—provided it can adapt to meet evolving consumer demands.

“We’re at a crossroads,” Bokunewicz observed. “The choices made now will determine the trajectory of New Jersey’s gaming landscape.”

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