Online gaming outpaces Atlantic City casinos' revenue for the second time in January

Online casinos in New Jersey topped Atlantic City’s retail casinos in revenue for the second time in January.

Despite finishing second, the city’s brick-and-mortar casinos still experienced growth compared to last year. Atlantic City casinos generated $210.1 million in revenue for January, marking a 2.6% increase from January 2024, according to the latest report from the New Jersey Division of Gaming Enforcement.

Atlantic City typically faces a slowdown during winter, making the drop in in-person revenue unsurprising, PlayNJ reported. 

Despite ongoing debates about the impact of iGaming on traditional casinos, industry experts remain optimistic. The COVID-19 pandemic altered gambling habits, but this past January's retail revenue surpassed pre-pandemic levels, including $177.3 million in 2019 and $192.1 million in 2020.

“Brick-and-mortar gaming is not being left behind by internet gaming,” Jane Bokunewicz, faculty director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism (LIGHT) at the Stockton University School of Business, told PlayNJ.

“While internet gaming again surpassed brick-and-mortar for total gaming revenue, brick-and-mortar still realized a year-over-year increase in January (despite harsher winter weather than we’ve seen recently),” she said. “This is an encouraging sign for the year ahead.”

One factor that helped casinos in January was the calendar—there were four full weekends and the start of a fifth, providing more opportunities for in-person gaming.

January’s revenue dipped 9.4% from December, a common post-holiday trend. February could see a boost, with Super Bowl parties—especially those featuring the Philadelphia Eagles—and Presidents’ Day weekend expected to drive more foot traffic to casinos.