After a decade long slide, the casino industry in the city is starting to show signs of rebounding.
Despite the closure of the Trump Taj Mahal Casino Resort, the casino industry saw its first revenue increase in a decade thanks to a thriving internet gaming market.
“For the first time in a decade, annual total gaming revenue increased last year – up 1.5 percent over 2015,” said Matthew Levinson, chairman and CEO of the Casino Control Commission. “I look forward to this trend continuing in 2017.”
During 2016 brick-and-mortar casino revenue totaled $2.406 billion compared to $2.414 billion in 2015, reflecting a less than one percent decrease, according to the state Department of Gaming Enforcement figures released Thursday afternoon.
Despite the loss in brick-and-mortar revenue, overall gaming industry’s gaming revenues totaled $2.603 billion, reflecting an increase of 1.5 percent, compared to the same period last year. While internet gaming saw a 32 percent increase to $196.7 million compared to the December 2015.
Internet gaming operations like PokerStars playing a huge role in markets gaming revenue growth, said Colin Mansfield, a casino analyst with Fitch Ratings.
“Overall the gaming numbers met our expectations,” Mansfield said. “We see it as a $2.4 billion market for the next couple of years. There aren’t huge catalysts that are going to push it in either direction.”
The Taj, once called the “Eighth Wonder of the World” by former owner and President-elect Donald J. Trump, closed Oct. 10 after management accused striking Unite Here Local 54 members of preventing a “path to profitability.”
Last month, brick-and-mortar gaming revenues totaled $189.6 million, an increase of about $22 million over December 2015, about 13.6 percent, excluding the Taj Mahal. The increase was attributed in part to having New Years Eve on a Saturday, Levinson said.
Every casino licensee reported increased revenue – including two that are internet-only licensees, Levinson said.
went out with a bang at the casinos thanks to a 15 percent jump in casino revenue for December,” Levinson said. “Having New Year’s Eve on a Saturday night and plain old good luck provided a big boost for the casinos in December.”
Over the past year, the casino industry has been laying the foundation that could turn the city’s gaming market around, Bob Ambrose, instructor of hospitality and gaming at Drexel University
“By no means do I want to diminish the negatives of the past and the loss of jobs by recent casino /hotel closures but we are seeing a one step at a time initiative by some of the corporate stakeholders that gives hope and a little back to the city image with each new venture” Ambrose said.