Comments from Jane Bokunewicz, faculty director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism (LIGHT), Stockton University School of Business, on the Fourth Quarter and Year-End 2023 numbers released Monday by the New Jersey Division of Gaming Enforcement:
Year-end 2023 numbers released today by the New Jersey Division of Gaming Enforcement suggest it is getting more expensive for New Jersey’s casinos to operate, and patron spending may not be keeping pace. Although total net revenues for the year surpassed prior years, they did not translate into gains in gross operating profit.
The same forces that might be tightening visitors’ purse strings (inflation, increased consumer prices etc.), are also forcing operators to dig deeper into their pockets. Higher operational costs (wages, cost of goods etc.) combined with increased spending on customer acquisition and retention (marketing, comps etc.) have not been balanced by as significant an increase in consumer spending as the industry might have hoped for. The resort overall is fighting an uphill battle post-pandemic with further headwinds from regional competitors.
It is unclear how much of a role internet gaming is playing in this dynamic. Notable gains in internet gaming gross revenues have not seemed to translate into proportionate net revenue gains. There is no clear explanation yet for this trend, which in the long-term could be troubling for casino operators and Atlantic City.
Jane Bokunewicz can be reached at jane.bokunewicz@stockton.edu
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