Online Gambling Revenue Offsets New Jersey Casino Losses

A recent report from the Division of Gaming Enforcement showed that the Atlantic City casino industry is still struggling to maintain profitability, but there are signs that some casinos will fare better in the coming months. Year-over-year revenue for the Atlantic City casino industry fell 1.4% in February. While the loss was discouraging to the city's 11 remaining casinos, the loss was offset slightly by revenues from online gambling.

The Atlantic Club Casino and Hotel declared bankruptcy in January. The remaining casinos absorbed many of its former customers.

Online gambling revenue has helped some casinos boost their revenues considerably. Profits for both the Borgata and Caesars Interactive increased substantially in February. Those two casinos both control nearly three quarters of the state's online gaming market. Tropicana accounts for about 13% of the market. These companies are likely optimistic that revenues from online gambling will keep them solvent.

On the other hand, some casinos are still in serious trouble. Two casinos owned by Trump Entertainment Resorts experienced the steepest declines. Revenue for the Trump Taj Mahal and Trump Plaza slipped by 42.8% and 26.6%, respectively.

The casino industry is still optimistic that online gambling will help boost profitability in the long-term, but the benefits are taking longer than they initially projected. Online gambling revenue for February was $1.4 million and appears to be increasing. The state's casinos see signs that it will increase in the coming months, especially since geolocation and payment processing issues are being resolved.

While there are signs that the industry is beginning to thrive, Chris Christie has decided to stop projecting future online gambling revenues. Executives of the state's casinos probably have their own projections that are separate from Christie's.