{"id":6688,"date":"2022-04-13T09:03:40","date_gmt":"2022-04-13T16:03:40","guid":{"rendered":"https:\/\/wagers.com\/staging\/4285\/?p=6688"},"modified":"2023-02-01T10:30:04","modified_gmt":"2023-02-01T18:30:04","slug":"analysis-how-online-gambling-has-changed-atlantic-city","status":"publish","type":"post","link":"https:\/\/wagers.com\/staging\/4285\/news\/analysis-how-online-gambling-has-changed-atlantic-city\/","title":{"rendered":"Analysis: How online gambling has changed Atlantic City"},"content":{"rendered":"<p><span data-preserver-spaces=\"true\">When New Jersey legalized online gambling in 2013, the modern-day version of the\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/en.wikipedia.org\/wiki\/Millerism\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Millerites<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0came out of the woodwork. The anti-online gambling crowd spent years with fingers in their ears shouting, \u201conline gambling will destroy the Atlantic City casino industry and lead to a problem gambling epidemic,\u201d to any outlet willing to listen.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">These doomsday warnings never came to pass. Instead, the evidence suggests that online gambling, and later sports betting, saved Atlantic City\u2019s gambling industry. Despite COVID restrictions and concerns lingering, 2021 land-based casino revenue was near 2019\u2019s six-year high.<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-large wp-image-6691\" src=\"https:\/\/wagers.com\/staging\/4285\/wp-content\/uploads\/Picture3-1-1024x598.png\" alt=\"\" width=\"1024\" height=\"598\" \/><\/p>\n<p><span data-preserver-spaces=\"true\">Looking at the bigger picture, 2021 was Atlantic City\u2019s best year since 2008. Before 2021, total gambling revenue hadn\u2019t eclipsed $4 billion since 2008.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Most importantly, the chart shows land-based revenue was steadily growing alongside online casino gambling and sports betting pre-COVID.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Based on the\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.njoag.gov\/about\/divisions-and-offices\/division-of-gaming-enforcement-home\/financial-and-statistical-information\/monthly-press-releases-and-statistical-summaries\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">early results<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0in 2022, land-based casino revenue is up 22% through February ($396 million in 2022 compared to $308 million in 2021). If that growth holds, land-based casino revenue could eclipse $3.3 billion, which hasn\u2019t happened since 2011.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">But What About Jobs?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">As the revenue argument fell apart, the online gambling Millerites were also keen on saying online gambling would decimate employment. However, without context, it\u2019s hard to argue that the data from the\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nj.gov\/casinos\/about\/reports\/pdf\/2019_ccc_annual_report.pdf\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">NJCCC Annual Report<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0doesn\u2019t show a decline in casino employment.<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-large wp-image-6690\" src=\"https:\/\/wagers.com\/staging\/4285\/wp-content\/uploads\/Picture2-1-1024x598.png\" alt=\"\" width=\"1024\" height=\"598\" \/><\/p>\n<p>But what happens when we add a little nuance?<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-large wp-image-6689\" src=\"https:\/\/wagers.com\/staging\/4285\/wp-content\/uploads\/Picture1-2-1024x598.png\" alt=\"\" width=\"1024\" height=\"598\" \/><\/p>\n<p><span data-preserver-spaces=\"true\">Excluding the COVID years, the chart shows that Atlantic City casino employment is relatively steady on a per operational casino basis.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In 2012, the city\u2019s twelve casinos employed an average of 2,900 people. In 2016, Atlantic City was down to seven casinos, but they had an average of 3,100 employees. 2019 showed the average employment per casino was around 2,900. Even during COVID, the average number of employees per casino was around 2,400.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Online gambling is not destroying brick &amp; mortar casino jobs. Nor do these figures include the non-casino jobs created by online gambling firms. For example, a\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/ideagrowth.org\/wp-content\/uploads\/2019\/11\/Economic-impact-online-gaming-NJ-2019.pdf\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">2019 white paper<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0commissioned by iDEA Growth concluded that online gambling created 3,240 indirect jobs in New Jersey.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">There are jobs that iGaming creates, especially, with the authorization of \u201cLive Dealer.\u201d Told recently by a leading provider that a state like IN with an 80 table studio would create up to 600 jobs.<\/p>\n<p>&mdash; John A Pappas (@yanni_dc) <a href=\"https:\/\/twitter.com\/yanni_dc\/status\/1506682062761340932?ref_src=twsrc%5Etfw\">March 23, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2><span data-preserver-spaces=\"true\">Profitable Casinos are Happy Casinos<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">More importantly, the city&#8217;s casinos are profitable. In 2021 only the newly purchased Bally&#8217;s AC was in the red, with the industry tallying $766.8 million in operating profit.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">2021 Atlantic City gross operating profit (including digital divisions):<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">Bally&#8217;s AC ($13.2 million)<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Borgata $174 million<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Caesars $62.1 million<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Golden Nugget $35.6 million<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Hard Rock $106.8 million<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Harrah&#8217;s $99.5 million<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Ocean Resort $91.2 million<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Resorts Casino $27.6 million<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Tropicana $118.7 million<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">CIENJ $16.6 million<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">GNOG $32.9 million<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Resorts Digital $15 million<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">Compare that to 2013, the last year before online gambling (online gambling launched in late-November 2013), when 12 casinos generated $235 million in profits, with five casinos in the red.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">2013 Atlantic City gross operating profit:<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">Atlantic Club ($12.7 million)<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Bally&#8217;s AC $33.4 million<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Borgata $121.6 million<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Caesars $69.5 million<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Golden Nugget ($10.4 million)<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Harrah&#8217;s $102 million<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Resorts Casino ($12.2 million)<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Revel ($130.2 million)<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Showboat $34 million<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Tropicana $26.5 million<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Trump Plaza ($4.7 million)<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Trump Taj Mahal $19.6 million<\/span><\/li>\n<\/ul>\n<h2><span data-preserver-spaces=\"true\">There Is Still Plenty of Work to Do<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The Atlantic City casino industry isn&#8217;t out of the woods, but its casinos are once again profitable, and economic investments are happening up and down the Boardwalk.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Atlantic City casinos were in dire straits before the legalization and launch of online gambling. The trouble began in 2006 when the first Pennsylvania casinos opened, and revenues and profits declined in the ensuing years, only reversing as online gambling took hold.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">I believe that if legalized in 2009, several Atlantic City casinos would have been spared, and it was online gambling and sports betting that brought Hard Rock and Ocean Casino to Atlantic City.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When New Jersey legalized online gambling in 2013, the modern-day version of the\u00a0Millerites\u00a0came out of the woodwork. The anti-online gambling crowd spent years with fingers in their ears shouting, \u201conline gambling will destroy the Atlantic City casino industry and lead to a problem gambling epidemic,\u201d to any outlet willing to listen. These doomsday warnings never [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":9440,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[1244,324],"tags":[782],"class_list":["post-6688","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-news","tag-new-jersey"],"_links":{"self":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/6688","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/comments?post=6688"}],"version-history":[{"count":3,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/6688\/revisions"}],"predecessor-version":[{"id":6695,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/6688\/revisions\/6695"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/media\/9440"}],"wp:attachment":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/media?parent=6688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/categories?post=6688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/tags?post=6688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}