Golden Nugget’s Online Take Could Exceed Land-Based Revenue
Golden Nugget’s Online Take Could Exceed Land-Based Revenue! That would be a first in U.S. history! When internet gaming was approved for New Jersey, it was hailed as a savior for some, while for others there was considerable skepticism. Now, it’s been successful enough for one entity that it is set to make gaming history in the next few months.
Golden Nugget’s Atlantic City Online Casinos Revenue Soars
The Golden Nugget in Atlantic City may soon become the first land-based casino enterprise in America where the land-based revenues are actually exceeded by those revenues generated over the internet.
They are not there yet, but at this rate, it could be October or November of this year when their internet action passes the physical casino take.
This would have been almost unthinkable a year ago when the brick and mortar operation was bringing in 2.3 times that of the online business.
But to say the gap has narrowed would be a major understatement.
The Golden Nugget’s exploits in this area have been more than notable. In March they set a new internet gaming record for New Jersey as they produced $14.23 million. Of course, some of this was aided by “March Madness” promotions.
In April, the difference between offline and online was only $1.6 million.
In May they generated a little less than $14.1 million, which was about $3 million below the physical casino total. That was a 64% increase over May 2018.
How This New Jersey Gambling Site Reaches Internet Sucess
So how has the Golden Nugget realized so much in the way of internet success? Thomas Winter, the general manager of online gaming for the company, suggests that they have focused on New Jersey residents primarily over the last five years or so, while competitors have concentrated more on patrons located in bordering states. As you may know, internet gaming, as it is regulated by the state of New Jersey, is open only to those customers IN the Garden State and not outside of it.
There is also an interesting dynamic involving the demographics for internet gaming. Winter is saying that his company’s land-based business is not being “cannibalized” by the online business, mostly because the online players are skewing much younger and tech-savvy, coming to the action through their computers and mobile devices.
In addition, those who are now engaging in sports betting through mobile or online means (New Jersey recently instituted legalized sports betting, after getting a federal law against it – the Professional and Amateur Sports Protection Act – thrown out) also get involved in playing online casino games. And sports has allowed for tremendous growth in and of itself.
Land Based Revenues Were 2.6 Million Less
Despite what Winter says, there would seem to be some residual effect from that, as the land-based revenues were $2.6 million less this May than they were in May 2018.
At any rate, the organization is ecstatic, because, as they say, the technology isn’t going backward. And some of the success could also be attributed to getting a “running start,” as the Golden Nugget got very comfortable with operating online perhaps a little quicker than its Atlantic City rivals. They also concentrated more on creating an exciting user experience.
They have continued to do that. They were the first to offer a live dealer casino, which, ironically, replicates the brick-and-mortar casino atmosphere online, as players come in through computers or mobile devices and challenge who play against them on behalf of the house in real time, with the activity coming through over a high-definition video feed.
For the month of May the Golden Nugget is in second place as far as overall gaming win among the Atlantic City casinos (at over $31.2 million). And as far as the “online vs. land-based” comparison is concerned, Resorts Atlantic City is the only other operation that comes close to it. All the others are lagging well behind.
Revenues from internet gaming are expected to soar well above $400 million for Atlantic City this year, going as high as $450 million.
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