The introduction of online gambling in Connecticut happened about two years ago, and industry analysts are taking into consideration the effects of the new form of gambling on traffic at Mohegan Sun and Foxwoods Resort Casino.
This has raised a number of questions related to the effect that the aforementioned gambling expansion and the availability of online gambling and sports betting services have had on the neighborhood, along with the significant increase in the business volumes of brick-and-mortar gambling venues. Unfortunately, even the most experienced market analysts cannot give adequate answers to clarify the situation.
According to the Pennsylvania-based consulting agency Spectrum Gaming Group which monitors the legal gambling industry on a global scale, the slots revenue generated at casinos across the state of Connecticut experienced a slight decline in the 12 months that ended in June. The firm also reported that the slots “win” of the two casinos mentioned above fell by 1.5% – from $861 million in the previous 12-month period to $848 million.
At the same time, the online gambling services offered by the respective owners of the Mohegan Sun and Foxwoods Resort Casino – the Mashantucket Pequot and Mohegan tribes – generated gross gaming revenue (GGR) worth $279 million over the 12 months that ended in June 2023, with the figure representing a 95% increase over the $143-million GGR it posted a year earlier.
Two Main Factors Could Be Responsible for Casino Slots’ Revenue Decline, Market Analysts Say
According to market experts, the small decline in the Connecticut casinos’ slots revenue is not a serious issue. Despite that, the analysts at Spectrum Gaming Group noted that casinos in Atlantic City, New Jersey saw an increase in the revenue generated by both their slot machines and their online gambling operations.
The consulting agency shared that the slots revenue decline of Connecticut casinos has been triggered by the simultaneous launch of online casino gaming and online sports betting services in the state in October 2021, on one hand, and by the decision of both Connecticut casinos to continue smoking bans that had been imposed upon reopening after the relaxation of the measures associated with the Covid-19 pandemic.
As far as the first factor is concerned, the state of Connecticut rolled out both online sports betting and casino services in October 2021. Spectrum Gaming Group’s analysts have explained that local players became more comfortable with the new forms of gambling because sports betting is predominantly a digital activity. In comparison, the state of New Jersey introduced online casino gambling in 2013, while online sports betting became available in 2018.
When it comes to the smoking ban that currently applies in Foxwoods Resort Casino and Mohegan Sun, analysts believe that the policy of keeping the smoking ban after the state Government dropped the limitations associated with the Covid-19 pandemic might have encouraged casino patrons who smoke to turn to online gambling. In comparison, the legislative attempts to suspend smoking in casinos across the state of New Jersey have failed so far.