Atlantic City Casinos Post Nine-Figure Loss During Second QuarterWith New Jersey's Brick-And-Mortar Gaming Closed In Response To COVID-19, There Was Only Online Revenue For The Three-Month Period |
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For the first time in the history of New Jersey gambling, a quarterly financial report of the gaming industry was devoid of any brick-and-mortar revenue.
According to data released by the New Jersey Division of Gaming Enforcement, Atlantic City’s nine casinos reported a 170.4 percent year-over-year decrease during the second quarter of 2020. Casino licensees reported net revenue of just $121.4 million, which totaled a loss of $112 million for the three-month period.
Gov. Phil Murphy forced the industry to shutter in mid-March in response to the COVID-19 pandemic, and the danger that was posed to his state by being adjacent to one of the major virus hotspots, New York City.
Murphy took one of the most strict approaches of any governor in the nation by forcing those casinos to stay closed for nearly four months. He allowed them to reopen July 2 at limited capacity and without indoor dining, smoking and drinking, which resulted in a loss for nearly every operator in the state.
Of all the operators, only Golden Nugget Atlantic City reported a profit for the second quarter. The Tilman Fertitta-owned casino can thank its online gambling presence for the entirety of its profits, as it was the only gambling available to Garden State residents throughout the brick-and-mortar closure.
Even after casinos were allowed to reopen, online gambling still flourished with online casinos setting another revenue record in June, reporting winnings of $87.5 million. Golden Nugget has the biggest piece of the online market.
In May, when online gambling revenue was $85.9 million, Fertitta’s company made up about a third of it. The following month, he announced a separation of his online venture from his brick-and-mortar casino, and will launch Golden Nugget Online Gaming Inc. in the third quarter of this year.
Since Atlantic City casinos weren’t closed in 2019, regulators felt that drawing year-over-year comparisons were “unreasonable.” According to a report from The Press of Atlantic City, Casino Control Commission James Plousis said that what the casinos did in anticipation of the reopening is what should be focused on.
“It is also noteworthy that, during this period, the casinos undertook an amazing effort and expense to prepare a safe environment for the return of employees and guests,” said Plousis in a prepared statement. “That critical investment enabled the casinos to begin welcoming back visitors with appropriate limits in July, and started Atlantic City on the road to recovery.”
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