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Atlantic Metropolis Casinos Report Income Slide in October


Posted on: November 18, 2022, 12:03h. 

Final up to date on: November 17, 2022, 04:17h.

Final month, the 9 casinos in Atlantic Metropolis gained 7% fewer {dollars} on their brick-and-mortar gaming flooring than they did in October 2021.

Atlantic City casinos gaming revenue GGR
The Showboat Christmas tree arrives on the Atlantic Metropolis Boardwalk on Nov. 17, 2022. The vacations didn’t come early for the 9 casinos on the town, as brick-and-mortar gaming income slowed in October. (Picture: Patch)

Land-based gross gaming income (GGR) in October 2022 totaled roughly $220.6 million. That’s down 7.1%, or almost $17 million, from the identical month final 12 months. Retail slots saved $166.2 million of the coin-in, a 7.3% year-over-year decline, whereas desk video games gained about $54.4 million — down 6.6%.

Although in-person play waned, on-line gamers misplaced extra in October 2022 than they did throughout the earlier October. GGR from web slots and desk video games, plus interactive poker rake, totaled $147.1 million.

The almost 16% iGaming GGR achieve managed to offset the diminished brick-and-mortar enterprise, in addition to a disappointing month for oddsmakers. Sports activities betting income decline greater than 7% to $77.9 million.

In all, New Jersey GGR totaled $445.7 million in October 2022. That could be a 0.7% year-over-year loss — or about $3 million.

Woe Casinos

Atlantic Metropolis casinos have been on a public relations marketing campaign stressing the dire situations going through the New Jersey beachfront gaming city. The 9 properties have harassed that they continue to be struggling within the wake of the pandemic regardless of media stories relaying that total gaming within the Backyard State continues to broaden.

However a lot of that income — particularly iGaming and on-line sports activities betting — doesn’t keep in Atlantic Metropolis, however as a substitute goes to the casinos’ third-party companions like DraftKings and FanDuel. The casinos efficiently satisfied state lawmakers earlier this 12 months to now not embody iGaming and cell sportsbook income of their payment-in-lieu-of-tax (PILOT) property tax calculation.

The PILOT adjustment, which stays tied up in courts after Atlantic County sued the state over the modification, would save the casinos $55 million this 12 months alone in property taxes. If the PILOT alteration is deemed authorized, the casinos may save as a lot as $295 million via the 2026 expiration of the PILOT program.

The casinos are additionally preventing towards an effort being led by gaming employees to extinguish indoor smoking. The On line casino Affiliation of New Jersey (CANJ) warns that such a regulatory change may harm annual brick-and-mortar gaming by as a lot as 25%, which might result in 1000’s of job losses.

Casinos $100M More healthy Than 2019

Atlantic Metropolis casinos are adamant in urging New Jersey lawmakers to keep up establishment in relation to gaming rules within the close to future.

Former New Jersey Senate President Stephen Sweeney (D), who championed the PILOT tax break for the casinos, backe these claims. He mentioned on his manner out that he’s been instructed that as much as 4 Atlantic Metropolis casinos can be in jeopardy of closing with out such property tax financial savings.

However even with brick-and-mortar GGR slowing by greater than 7% in October, final month’s land-based win of $220.6 million was nonetheless 9.1% increased than the $202.2 million that the identical 9 casinos gained in pre-pandemic October 2019.

Nonetheless, the casinos say their overheads have elevated enormously amid file inflation and excessive worker turnover. Nonetheless, January via October 2022 land-based GGR of roughly $2.35 billion is greater than $101 million forward of the identical 10 months in 2019.

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