Atlantic City casino profits are reportedly down 65% in Q1 of 2020
Coronavirus has become a household name and is single-handedly responsible for the collapse of business, markets and revenue across the globe. Nothing and nobody is safe from the potentially deadly virus which is why literally everything around the world has come to a standstill; from schools to call centres, concerts to awards ceremonies and even iGaming festivals. If it involves standing next to another person, it’s been closed down!
Jane Bokunewicz, beleives that the decline was not surprising, given that most casinos continued to pay employees for two weeks after the shutdown.
The new norm is social distancing, washing our hands regularly, staying indoors and staying away from people from other households. In many countries, venturing out has only been allowed as far as purchasing medications or essential items such as foods, but only now as the world is returning to some sort of ‘normality’ are we witnessing the full impact on land-based casino revenues.
Atlantic City casino profits are reportedly down 65% in Q1 of 2020, according to recently released figures. However, the statistics only cover the first fortnight of casino closures due to coronavirus. Q2 earning are predicted to be worse, since casinos were also closed for all of April and May.
Gross operating profits for nine casinos in the jurisdiction were at $29.6 million in the first three months of 2020 according to the New Jersey Division of Gaming Enforcement, which would mean profits were down $85.6million from the previous year.
Jane Bokunewicz, coordinator of a gambling studies institute at Stockton University outside Atlantic City said that the decline was “not surprising, given that most casinos continued to pay employees for two weeks after the shutdown. With only internet gaming and a small amount of sports betting revenue to offset payroll expenses, a significant decrease was inevitable.”
Light at the End of the Tunnel
New Jersey’s Division of Gaming Enforcement (DGE) published a report into online gaming and sports betting for the month for April, and it was dubbed as another ‘record’ win.
It’s not all doom and gloom though, what with more players turning to online gambling as a way to continue with some sort of normality. While many people believe that gambling online in the state of New Jersey is illegal, and that Atlantic City is their only option for gambling, this is not the case. There are plenty of legal and legitimate online casinos available as well, with reviews and helpful information available on this page. Online gaming revenue for New Jersey is continuing to soar and recently, New Jersey’s Division of Gaming Enforcement (DGE) published a report into online gaming and sports betting for the month for April, and it was dubbed as another ‘record’ win.
The state’s internet gaming for April was $80million and when you compare that with April of the previous year, it was up $43.4million; an increase of more than 11%. Online poker hit another state record when it soared from $3.6million in March to $5.15million in April. Caesars Interactive saw revenue of $8.7million in this same period which was almost double that from the previous year and the have been some spikes in online casino game revenue too. The industry’s total game revenue was $833.9million leading up to April, which is lower than 2019’s $1.03billion – that’s a decrease of 19.1%.
It’s thought we won’t have long to wait before phase 1 of the re-opening of casinos comes into effect, as neighbouring Las Vegas announcing a handful of casino hotels back open for business. Until then, the online casinos are benefitting from this change in gambling habits.
iGathering Riga:
The next SiGMA iGathering networking event will be held in Riga. The dinner, which is planned for the 26th of August, at 19:00, is set to take place at the stunning Royal Casino. The evening will also welcome guests from neighbouring countries Estonia and Lithuania, tapping into a wide network of the region’s top industry thinkers.
For more information on the event please contact Emily on [email protected] or visit our website to find out more about upcoming iGathering events on the SiGMA calendar.
