In New Jersey’s vibrant gambling market, the second half of 2023 is proving to be nothing short of spectacular, with casinos across the state continuing their winning streak. As the year draws to a close, the thrill of the various casino offerings, as well as the exhilaration of sports betting and iGaming have all combined to create a whirlwind of success.
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August 2023: A Month of Remarkable Achievements
In particular, August 2023 emerged as a record-breaking month with both land-based and online casino establishments contributing significantly to the impressive revenue figures. This August, land-based casinos played a pivotal role, contributing $280.2 million to the total earnings.
Among Atlantic City’s 9 casinos, Borgata, Hard Rock, and Ocean Casino successfully exceeded their pre-pandemic numbers, signifying a healthy recovery in the industry. Online and sports betting operators also played a critical role, with a surprising $725 million in sports bets placed during the month.
This significant gambling activity generated a considerable $96 million in earnings, setting the stage for an even more profitable September as the football season kicked off, attracting a multitude of enthusiasts. Among the individual casino operators, Hard Rock emerged as the front-runner, reporting earnings exceeding $59 million.
According to the New Jersey Gaming Board, this was an increase of 10% from the last year. The Golden Nugget also experienced a noteworthy improvement, generating $54 million, reflecting a notable 21% surge. Ocean Casino also performed commendably, marking an 11% upsurge with earnings outstanding $44 million.
Bally’s also showcased a notable performance, accruing $23.3 million, a prominent 15.4% surge from the previous year. Despite a slight reduction in earnings, Borgata managed to secure extensive income, totaling close to $118 million. Unfortunately, Tropicana faced a minor hindrance, reporting $33 million in earnings, reflecting a 6% decrease.
Harrah’s also experienced a 2.4% dip with earnings totalling $24.5 million. Caesars and Resorts rounded out the list, with Caesars reporting $22 million in earnings, marking a minimal 1% decrease. Resorts, on the other hand, recorded $17.6 million, which was a decrease of 5.6%.
The range in these figures unde3rscores the super competitive nature of the New Jersey casino landscape, where operators continuously strive to maintain or improve their standing in the sector. As far as online gambling is concerned, Resorts Digital led the way with $99 million in earnings for August.
Resorts’ performance this August represents an impressive 28% increase from the previous year. It should be noted that Caesars Interactive Entertainment NJ also faced challenges, reporting a decrease of 25% with earnings of $6.6 million reported. Such fluctuations highlight the dynamic nature of the online gaming sector, where flexibility and innovation are key to non-stop success.
Atlantic City casinos collect $504M+ in taxes and fees during FY 2022-23
Casinos in Atlantic City aren’t just pillars of the entertainment scene but also play a crucial role as the backbone of social welfare. The fiscal year 2022-2023 stands as a testament to this fact. Based on reports from the DGE, gambling establishments in the Garden State contributed a jaw-dropping sum of more than $504 million in taxes and fees.
This massive amount serves as a lifeline for countless programs designed to help the state’s most vulnerable residents while also creating a positive ripple effect all through New Jersey. Funds for each of the different programs are typically derived from taxing different sections of the industry from progressive slots to combined gaming revenue from online and land-based operators.
The funds are then strategically allocated to various programs, marking a tangible difference in the residents of the state. For instance, at least $436.6 million from the fund was budgeted for the Community Care Program Individual Support, as outlined in the 2023-24 state budget.
The Community Care Program Individual Support delivers vital services including assistance with household chores and specialized training for residents in state-licensed residential facilities. The program also equips residents with the skills they need for self-care, as well as habitation, which enhances the independence and quality of life of those concerned.
Additionally, based on state records, New Jersey Transit also utilized more than $38.9 million from the fund for its Senior Citizens and Disabled Residents Transportation Assistance Program. With the funds allocated to the program, senior citizens and individuals with disabilities now have a lifeline.
The Senior Citizens and Disabled Residents Transportation Assistance Program, managed by NJ Transit, ensures that senior citizens have access to non-emergency medical trips, shopping facilities, and nutrition resources, which facilitates their movement and overall well-being.
Over the last 10 years or so, the increase in casino gambling in the state has had a sharp impact on the amounts that the fund receives. In 2013, the market faced considerable challenges, leading to the closure of several establishments including the Atlantic Club, Showboat, Revel, Trump Plaza, and the Trump Taj Mahal in the following years.
During this period of struggle, the Casino Revenue Fund, established in 1976, experienced a slump, with revenue plummeting to $214.6 million in 2013. By 2015, the fund had hit a low of $205.9 million, the lowest amount since 1987. However, over the years, the city’s fortunate have turned for the better bolstered by the legalization of iGaming and sports betting.
This newfound vitality has emerged as a lifeline for the Casino Revenue Fund, allowing it to regain its strength. iGaming has played the biggest role in increasing tax revenue for both the Casino Revenue Fund and the CRDA. The revenue produced by online gaming, coupled with a higher tax rate of 15%, in contrast to the 8% on slots and table revenue, led to a significant uptick in total gaming taxes collected by the state, especially post-pandemic.
Final Thoughts
As New Jersey’s casino industry keeps thriving, the vision for Atlantic City and its residents becomes increasingly promising. The strategic allocation of funds has not only helped to boost economic growth but also fostered a sense of responsibility among betting establishments. The contributions in the fiscal year underscore the power of the betting industry as it transcends entertainment and enriches the lives of New Jersey’s residents.
