Gaming numbers flatten in October, sports betting handle rebounds

Listen to this article

The Division of Gaming Enforcement released its October gaming numbers Nov. 17, which showed a cooldown in brick-and-mortar casino figures, while the sports betting handle ticked back across the $1 billion mark.

Total casino win – the measure of brick-and-mortar casino revenues – was $220.6 million for October 2022, reflecting a 7.1% decrease compared with October 2021. Total gaming revenue reported by casinos, racetracks and partners was $445.7 million last month, a 0.7% decrease from $448.7 million last October.

“In keeping with established seasonal patterns, total and brick-and-mortar casino revenue (slots, table games and poker) for Atlantic City’s casinos began to cool in October,” said Jane Bokunewicz, faculty director of Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism (LIGHT), Stockton University School of Business, who analyzed the report. “Compared to September 2022, total gaming revenue was down 8%.”

Internet gaming had another red-hot month, reporting $147.2 million in gaming wins, which is 15.9% higher than last year.

Meanwhile, the sports betting handle was $1.06 billion, up 22% from September but down 18.6% from last October. The cross into the $1 billion threshold has become a bit of the norm during football season in New Jersey, but the softening from last October’s number may reflect some external headwinds, such as consumer challenges and increased competition.

“The billions are back! After a brief respite from the $1 billion mark in total handle, New Jersey sports betting is right back where it’s used to being,” TopNJCasinos wrote in its analysis. “October’s wagers were up 22% from September, a rise that is to be expected this time of year, but it should be noted that numbers are down from October 2021. This may be indicative of larger market issue, but there will be no confirmation until there’s a pattern in other states.”

TopNJCasinos added that the figures also show a trend of more bettors moving to mobile wagering apps over retail sportsbook with $987 million of the handle’s bets being placed on mobile apps.

Total sports betting revenue in October was $77.9 million, down 20.5% from September and down 7.4% from October 2021.

“Compared to October 2021, total gaming revenue for October 2022 was essentially flat increasing 1% year over year. This occurred despite a 7% year-over-year decline in brick-and-mortar gaming revenue,” Bokunewicz explained. “Internet gaming revenue for the month, which increased 13.7% compared to October 2021, seems to have made up the difference. Internet gaming continues to prove its importance to the overall gaming revenue mix for Atlantic City’s casinos just as it has in other gaming jurisdictions nationwide.”

Bokunewicz also noted that despite the less-than-impressive performance last month, Atlantic City’s casinos are poised to set a new near-term record in year-end total gaming revenue. She says it is already outpacing last October’s year-to-date revenue by 11.5%.

“While not as impressive as total gaming revenue, Atlantic City’s brick-and-mortar casino revenues overall have been strong in 2022,” Bokunewicz explained. “Brick-and-mortar casino revenue in the period ending October 2022 outpaced the same period in 2021 by 9.3%, despite inflation, increased gas prices and a tapering in pent-up demand. At $2.35 billion, year-to-date brick-and-mortar revenues also exceeded the period ended October 2019 ($2.25 billion) by 4.5%.”

“Based on year-to-date revenues, 2022 has already exceeded 2019 for year-end total gaming revenues and has the potential to exceed 2019 year-end brick-and-mortar casinos revenues as well,” Bokunewicz added.