Gross Gaming Revenues Improve for Atlantic City Casinos

Gross Gaming Revenues Improve for Atlantic City Casinos

Atlantic City casinos are back on extensive Gross Gaming Revenue trails, as they posted $212.4 million in February this year.

Back in 2020, the gross gaming revenue was $218.3 million. It is also a massive recovery of 43% from last year’s revenue. Moreover, it was 8% better at $15.7 million over February 2019 revenue.

iGaming on the uprise

If revenue statistics indicate, then Atlantic City Casinos and retailing is sluggish, a shade below the all-time high of pre-pandemic days. However, the uptrend in the gaming industry is currently iGaming.

In February, iGaming revenue grossed $130 m derived from interactive slots and tables and poker rake. In terms of value, this was better than February 2021 by nearly 40% and higher than February 2020 by 150%.

Apart from the sector-wise growth, the highlight is the statewide gaming industry growth in GGR. For example, New Jersey reported $373.2 million in February 2022, approximately 30% higher than the previous year.

However, casino revenues continue to be subdued in January 2022 compared to January 2020 by 4%.

Busy season Ahead

The busy season is in the summer months here in Atlantic City. Casino resorts dotting the Atlantic Ocean are expected to post positive growth after January’s performance, according to Casino.org’s New Jersey Casino Control Commission Chair, James Plousis.

The top official reiterated that the casino executives are excited for a good season run in spring and summer. These properties have invested in crucial improvement during the offseason and expect to post returns from the changes thus far.

Tax Cuts driving optimism

The expectations of a big season run by the nine casinos of the region are also backed by government largesse.

A $55 million property tax cut for 2022 is already announced. This would reduce the annual property payment the casinos have to make to the government as part of the payment-in-lieu-of-tax (PILOT). However, to achieve these tax savings, the income generated by iGaming and online sports was removed.

However, there is a conflict about PILOT between Atlantic County and New Jersey. If the PILOT were to stand canceled, the County would be burdened by $5million per year until 2026.

sherlock

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.