It’s been a tremendously turbulent year across the globe, with Covid-19 lockdowns affecting both the fortunes of ordinary people and businesses large and small.
The economic impact of coronavirus in 2020 has not been more keenly felt than in the United States, where cases of the disease outstrip those recorded in any other nation. A bit-part lockdown across the country has left many enterprises from mom and pop shops to multinational corporations counting the cost of the shutdown in terms of reduced footfall and revenue.
This July however, there was some respite for New Jersey business, with a multi-staged reopening announced by Governor Phil Murphy. One of the immediate beneficiaries of the relaxed restrictions were casinos and horse-tracks in the state, which according to the Division of Gaming Enforcement took in a total of $264.5 million after being authorised to welcome patrons back on July 2nd.
Brick-and-mortar casinos cherished the opportunity to re-open in the midst of the pandemic, albeit with normal capacity reduced by 75%. Whilst many industry experts feared that Covid paranoia would prevail and continue to dampen profits, a significant number of casino customers returned to physical establishments this July, helping to offset a long- term industry slump. However, this recovery is built on shaky ground, with the unpredictable nature of the ongoing Covid situation meaning another significant rise in cases is not to be ruled out, and casinos may once again be forced to turn away punters.
Online casino revenue starts to climb
Although there is renewed optimism in the wake of the soft re-opening, it does not offset the losses casinos have taken across the state, with establishments in New Jersey taking in 21% less in the month of July this year than in 2019, but notwithstanding any further restrictions or significant outbreaks, the industry can bet on a gradual recovery.
Fortunes have gone the other way this year for New Jersey’s online casinos however, with July setting a record $87.5 million worth of revenue, outstripping the previous total of $85.9 million in May. It’s clear therefore that orders to remain indoors have presented the opportunity of a lifetime for online casino providers in the state.
Sports betting revenue also benefitted from the resumption of baseball and basketball. Revenues of $29.5 million were 65% higher than those revealed in July 2019, demonstrating how much sport and the thrill of accompanied sports betting have been sorely missed by many.
Of course, whilst some have greeted the resumption of physical casino services, others understandably remain cautious, preferring to hedge their bets indoors. This is of course welcome news for online casino sites, with the NJ online casino list seemingly growing bigger each month as traditional land-based brands, as well as international operators, attempt to cash in on the growing shift towards online wagering.
New Jersey and the great Atlantic City have been rightly regarded for years as the heartland for casinos in the U.S., be they land based or online, and whilst the land-based industry is struggling for now in the wake of these unfortunate times, good times are surely just around the corner for NJ’s casino industry.
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