Borgata Online Casino Atlantic City Nj
Posted By admin On 08/04/22After the unprecedented closure of all nine Atlantic City, NJ casinos since March 16, 2020, all but one reopened during the July 4 th holiday weekend. The one holdout was the Borgata Hotel Casino & Spa. One of the largest poker rooms in the United States is set to reopen this Wednesday after being closed since mid-March due to the pandemic. Borgata Hotel Casino & Spa in Atlantic City, New Jersey.
It should come as no surprise that Atlantic City gaming revenue declined in 2020.
The city’s nine casinos were closed for over 100 days to slow the spread of COVID-19. When the casinos eventually reopened, they did so without indoor dining, live entertainment or conventions. A 25% capacity limit has been in place since the summer.
Given all the industry endured in 2020, a 19.5% decline in year-over-year total gaming revenue was not unexpected. However, it is a result that could have been much worse if not for online casino and sports betting.
Breaking down total gaming revenue
Atlantic City’s casino industry reported $2.65 billion in total gaming revenue last year, according to data released Wednesday by the New Jersey Division of Gaming Enforcement. That figure represents combined revenue from casino win (table games and slot machines), NJ online gaming, and sports betting.
In 2019, the industry reported $3.3 billion in gambling revenue.
Eye-popping growth in NJ online revenue (+101%) and a sizeable increase from sports betting (+35.6%) helped cushion the blow from a $1.17 billion (-43.7%) drop in revenue of brick-and-mortar casino win in 2020.
Internet gaming revenue accounted for $970.3 million, or 36.6%, of the industry total in 2020. Sports generated $166.3 million in revenue from both online and in-person bets.
2020 was a bust for Atlantic City casinos
NJ Gov. Phil Murphyordered Atlantic City’s casinos to close on March 16. They were not allowed to reopen until July 2.
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The nearly four-month shutdown of the casinos had a disastrous effect on annual table game and slot machine revenue.
Borgata, the last property to reopen, and Golden Nugget both saw their casino win cut in half. Borgata’s $337.6 million was still more than $110 million better than the closest competitor. However, it was 52.4% decline from 2019. The Nugget’s casino win fell 52.2%, from $199 million in 2019 to $95 million last year.
Hard Rock Atlantic City ($224.8 million, -30.6%) and Ocean Casino Resort ($183.6 million, -14.9%) reported the smallest declines. As a result, the two properties were second and third, respectively, in the AC market in table game and slot revenue.
The three Atlantic City properties operated by Caesars Entertainment Inc. all reported casino win declines of more than 40% in 2020.
- Caesars, $151.2 million, -44.2%
- Harrah’s Resort, $165.9 million, -46.8%
- Tropicana, $159.6 million, -47.3%
Bally’s casino win fell by 45.9% last year, from $176 million to $95.3 million. Resorts went from $176.4 million in 2019 to $99.5 million (-43.6%).
COVID stopped AC’s ‘positive momentum’
Until March, Atlantic City was riding a hot streak: 21-consecutive months of year-over-year increases in total gaming revenue.
NJ Casino Control Commission Chairman James Plousis lamented COVID-19’s impact on the gaming industry. He noted that entering 2020, “Atlantic City had marked four straight years of revenue growth and it was enjoying a lot of positive momentum.”
“Significant revenue was lost in those early months and, throughout the second half of the year, the resurging public health crisis continued to impact business in Atlantic City,” said Plousis.
In an interview with PlayNJ, Resorts CEO and President Mark Giannantonio described 2020 as “the most difficult experience that I’ve ever been through in 30-plus years of being in gaming.”
“However, I’m optimistic,” Giannantonio said, adding that once the COVID-19 vaccine has been widely distributed, Atlantic City casinos “will be well prepared to deal with (the) pent-up demand.”
Plousis said the city will be “ready to restore its recent positive momentum” as things return to some semblance of normalcy.
AC’s ‘silver lining’
Jane Bokunewicz, coordinator of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism at Stockton University, said she thought there could be a silver lining from 2020. The COVID crisis, she said, was “an opportunity to examine (businesses’) relationships with consumers and consider ways to serve them better.”
“Crisis has strained the industry, tested the resilience of many businesses, but it has also been the catalyst for significant changes, strengthening the industry and positioning it for successful recovery in 2021,” Bokunewicz said. “Once the vaccine is widely distributed and consumer confidence returns, Atlantic City will be ready to serve visitors’ pent up demand for human connection and quality life experiences.”
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President and COO of Atlantic City’s Borgata, Tom Ballance, discussed with NJ Today Managing Editor Mike Schneider details on the Borgata becoming the first casino in Atlantic City to receive an online gambling permit.
Ballance said, “The third of November is the first day that you can start online gaming in New Jersey. We are committed to first, having the best product, second, the best know your customer systems and third, opening up the first in the market.”
He believes that there is a large opportunity to make money in the market of online gambling for the Borgata.
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Although the Borgata has a permit, the company still has work to do on the online gambling system. The Division of Gaming Enforcement still needs to test the systems, said Ballance.
To ensure that gamblers from other states cannot log into the New Jersey system and gamble, there is a GEO location. Ballance said, “GEO location is one of the keys to a successful online gaming in New Jersey and frankly it is one the most least tested areas that we really have to test and really have to be sure that it operates properly before we launch.”
There will be competition once other casinos in the state receive online gambling permits. Ballance said that he believes that the people who execute their programs better and market them better will be successful.
As for the strategy for the Borgata, Ballance said, “We operate our business as leaders and we expect to operate the online gaming business as leaders as well.”