Golden Nugget Atlantic City could become the first US casino whose Internet gambling revenue matches or exceeds revenue from its land-based operation. The property, one of nine brick-and-mortar casinos on Atlantic City’s Boardwalk, is expected to reach this important milestone by the end of the year.
The hotel and casino resort has seen a robust growth in revenue from its digital operations over the past several months, which was largely driven by the launch of sports betting.
Commenting on the property potentially making history within the next few months, PlayNJ.com analyst Steve Ruddock has said that it was not a surprise that Golden Nugget was “flirting with this milestone” and that he believed it is inevitable that online gambling revenue will eventually surpass land-based operations.
Ruddock elaborated further that while he would be surprised if this happens during the busy summer months, Golden Nugget will likely see its online gambling revenue exceed retail casino win by October.
Golden Nugget’s Gambling Revenue
Figures released by the New Jersey Division of Gaming Enforcement showed that in four of the first five months of the year, the difference between Golden Nugget’s online revenue and retail casino win was less than $3.5 million.
The property provides online gambling through its partners Betfair Casino, Play SugarHouse, and BetAmerica. In March, the property and online gambling portfolio generated record revenue of $14.23 million that was just $3.4 million less than what Golden Nugget’s table games and slots generated that same month.
In April, the property recorded $13.85 million in online gambling revenue, with the difference between digital and retail revenue being less than $1.6 million.
Commenting on the recent numbers, Golden Nugget Senior Vice President and General Manager of Online Gaming Thomas Winter said that they were the result from their exclusive focus on the New Jersey market over the past five years. Winter added that Golden Nugget has thus gained a competitive advantage over its rivals whose attention “is sometimes spread across multiple jurisdictions.”
Online Gambling Does Not Cannibalize Retail Revenue
Winter elaborated further that the online gambling growth has not come at the expense of their retail business. The reason for this, the casino executive said, hides behind the fact that land-based casino customers and online gambling customers are part of different demographics. Online gamblers are generally younger and seek different experience that the traditional brick-and-mortar offering.
According to Winter, the regulation of sports betting in New Jersey has too boosted growth in the digital segment. He pointed out that bettors do not see themselves as casino players. However, the greater portion of online gaming growth has come from bettors who have signed up to bet on sporting events and then started playing “a bit of roulette, blackjack or slots.”
A bill currently under consideration by New Jersey legislators is expected to further boost Golden Nugget’s performance, if its provisions get adopted. Under the piece of legislation, the casino resort could be allowed to take bets on NBA games.
At present, the property is not permitted to handle NBA bets, due to the fact that its owner, Texas businessman Tilman Fertitta, is also the owner of the Houston Rockets.
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