Jane Bokunewicz, faculty director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism (LIGHT) at the Stockton University School of Business, believes that Atlantic City casinos are going to be fine – amid certain conditions.

Atlantic City casinos still have a purpose

Atlantic City casinos had a down July but rebounded in August in a big way, which eased potential concerns of cannibalization. Properties reported $294 million in revenue last month, which was easily a year-high and the third-best month since 2016.

The retail boom happened in conjunction with iGaming setting a new revenue record in the state, producing $198.4 million last month. Despite the growth of online casinos in recent years, it all comes down to providing customer experience, for both verticals. That is going to keep Atlantic City casinos afloat.

“Operators that can offer patrons a quality gaming experience online and in-person likely have an edge in holding their business and inspiring loyalty,” Bokunewicz told PlayNJ.

“To be clear, iGaming is not a substitute or replacement for the in-person gaming experience and different patrons may seek different online and in-person gaming products to suit their taste. iGaming complements in-person in that it is an extension of the customer experience — a new, often innovative, product that can be accessed on demand.”

Revenue is expected to decrease at Atlantic City properties during the fall and winter months, which is to be expected. However, during a key summer month, casinos proved that they are an essential part of the community and gambling business in the Garden State.

“At nearly 56% of total gross gaming revenue for the month, and in a month when internet gaming gross revenue was at a record high, land-based gaming is still the dominant component of Atlantic City casino operators’ revenue mix,” Bokunewicz explained.

Atlantic City casinos keep pace despite rapid iGaming growth

Online casinos in New Jersey have become popular enough to account for a significant portion of the gambling revenue.

Here are the percentages of AC casinos and iGaming revenue per year since 2016:

It’s clear that online casinos jumped drastically since 2020 as much of that can be attributed to the pandemic, when retail casinos all across the country were closed for several months. It appears that, since the pandemic, customers latched onto the online methods of gambling.

“One of the most significant impacts may be how it supported the industry through the difficult months of lockdown and has continued to keep the industry competitive in the regional market,” Bokunewicz said.

However, Bokunewicz sees a scenario in which both verticals can thrive, especially Atlantic City casinos. In 2024, AC casinos have been able to grow revenue percentage in each of the last four months:

• April: 52.58%
• May: 55.46%
• June: 56.64%
• July: 58.22%
• August: 59.71%

“There is no substitute for the excitement of the casino floor or the immersive experience of an integrated casino resort,” she said.

“The vibrancy of spaces filled with dining, live music and other patrons enjoying the casino experiences will never be completely replicated even by Live Dealer online offerings.”

Bokunewicz reiterated multiple times that customer experience is the key to drive revenue for both online and retail casinos. While nothing beats the convenience of online gambling, it doesn’t substitute the feeling of playing slots in-person, and potentially winning a large jackpot surrounded by other casino-goers.