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Atlantic City Casinos 2020/2024: A Comprehensive Overview

Introduction

Atlantic City, a vibrant coastal city in New Jersey, is renowned for its thriving casino industry. This industry has witnessed significant developments and faced challenges in recent years, which has set the stage for its future prospects. This article provides a comprehensive overview of the Atlantic City casino industry in 2020 and projections for 2024, exploring its performance, trends, and key drivers of growth.

State of the Industry in 2020

Performance

According to the New Jersey Division of Gaming Enforcement (NJDGE), Atlantic City's casinos generated $2.53 billion in total gaming revenue in 2020, a 6.1% decline from 2019's $2.7 billion. This decline was primarily attributed to the COVID-19 pandemic, which forced casinos to close for several months and operate with reduced capacity and restrictions upon reopening.

Market Share

Bally's Atlantic City accounted for the largest share of the market in 2020 with $443.7 million in revenue, followed by Borgata Hotel Casino & Spa ($428.6 million) and Golden Nugget Atlantic City ($364.2 million). These three casinos collectively held a 45.4% market share.

Employment

The casino industry employed approximately 28,000 people in Atlantic City in 2020, a 4.6% decrease from 2019. The pandemic-related job losses were mainly concentrated in the hospitality and entertainment sectors.

Trends and Developments

Online Gambling

Online gambling has emerged as a significant growth driver for Atlantic City casinos. In 2020, online casino and poker revenue reached $1.2 billion, representing 47.4% of total gaming revenue. This trend is expected to continue in the years to come, with online gambling projected to account for 55-60% of total revenue by 2024.

Sports Betting

Sports betting has also gained traction in Atlantic City. In 2020, casinos generated $447.2 million in sports betting revenue, a 12.2% increase from 2019. The legalization of sports betting in neighboring states like Pennsylvania and New York is expected to drive further growth in this segment.

Non-Gaming Amenities

Casinos in Atlantic City have been investing heavily in non-gaming amenities to attract a broader clientele. These amenities include restaurants, bars, nightclubs, and entertainment venues. The goal is to create a more diverse and immersive experience for visitors, both gamblers and non-gamblers alike.

Projections for 2024

Revenue

The NJDGE projects that Atlantic City's casinos will generate $2.8 billion in total gaming revenue by 2024, a 10.7% increase from 2020 levels. This growth is expected to be driven by the recovery from the pandemic, the continued growth of online gambling and sports betting, and the addition of new attractions and amenities.

Market Share

The market share of the top three casinos in Atlantic City is expected to remain relatively stable in the coming years. Bally's, Borgata, and Golden Nugget are well-established brands with loyal customer bases. However, smaller casinos may face increased competition as online gambling and sports betting become more popular.

Employment

The casino industry in Atlantic City is expected to add 2,000 new jobs by 2024, bringing the total employment level back to pre-pandemic levels. This growth is expected to be driven by the expansion of online gambling and sports betting, which require additional staff for customer service, technical support, and marketing.

Effective Strategies for Growth

To capitalize on the growth opportunities and overcome challenges, Atlantic City casinos can implement several effective strategies:

Invest in online gambling and sports betting: These segments represent significant growth potential and can help casinos expand their revenue streams.
Offer a diverse range of non-gaming amenities: Creating a more immersive and attractive entertainment destination can attract a broader clientele.
Collaborate with local businesses: Partnerships with hotels, restaurants, and other attractions can drive traffic to casinos and enhance the overall visitor experience.
Promote responsible gambling: Establishing a positive and responsible gambling environment can build trust and attract new customers.
Market to millennials and Generation Z: Younger generations are increasingly interested in gambling, and casinos need to tailor their offerings to appeal to these demographics.

Why It Matters

The success of Atlantic City casinos is vital for the city's economy and its residents. The industry provides employment, generates tax revenue, and supports local businesses. A thriving casino industry also helps to attract tourists and boost economic activity in the region.

Benefits of Atlantic City Casinos

Economic development: Casinos create jobs, increase tax revenue, and stimulate business growth.
Entertainment and recreation: Casinos offer a wide range of entertainment options for residents and tourists alike.
Revitalization of Atlantic City: The casino industry has helped to revitalize Atlantic City and make it a more attractive tourist destination.
Community support: Casinos often donate to local charities and support community organizations.

Challenges and Considerations

Competition from neighboring states: Casinos in Pennsylvania, New York, and other nearby states pose increasing competition to Atlantic City.
Economic downturns: The casino industry is cyclical and can be negatively impacted by economic downturns.
Regulatory changes: Changes in gambling regulations can have a significant impact on the industry.

Comparison of Pros and Cons of Atlantic City Casinos

Pros:

Economic benefits: Job creation, tax revenue, business development.
Entertainment and recreation: Diverse range of entertainment options.
Revitalization of Atlantic City: Has helped to revitalize the city.
Community support: Casinos often donate to local charities.

Cons:

Competition from neighboring states: Casinos in other states pose competition.
Economic downturns: Can negatively impact the industry.
Regulatory changes: Changes in regulations can affect the industry.
Social concerns: Gambling can lead to addiction and other social problems.

Conclusion

The Atlantic City casino industry has faced challenges and witnessed developments in recent years. However, the industry remains a significant economic driver for the city and is projected to experience growth in the coming years. By implementing effective strategies and addressing key challenges, Atlantic City casinos can continue to thrive and contribute to the city's economy and its residents.