New Jersey’s Online Gambling Industry Achieves Record Revenue
In September 2023, New Jersey’s online gambling industry celebrated a significant milestone, as Atlantic City’s casinos and their digital partners amassed an impressive revenue of over $208 million. This achievement marks the first time that monthly internet gambling earnings have eclipsed the $200 million mark, indicating the growing relevance of online gaming in the state’s gambling landscape, especially as traditional casino revenues continue to face challenges.
The Surging Online Gaming Market
The data, released by the New Jersey Division of Gaming Enforcement, underscores an important trend in the gaming sector: the increasing reliance on internet-based gambling platforms. As physical casino revenues have shown signs of stagnation or decline, online gaming has emerged as a crucial revenue stream. The growth in this virtual space not only highlights changing consumer preferences but also reflects broader societal shifts toward digital experiences.
Despite the impressive figures from online gambling, it is essential to note that not all of this revenue remains with the casinos. A portion is allocated to third-party technology providers and other partners involved in the online gaming ecosystem. This revenue-sharing model means that while online gaming is thriving, traditional casinos still view in-person gambling as their primary focus.
Mixed Results for In-Person Gaming
While online gambling has set new records, performance on the casino floors presents a more nuanced picture. Overall in-person revenue exceeded that of September 2019 by $6 million, suggesting a broader recovery in the sector. However, five of Atlantic City’s nine casinos reported lower in-person earnings than pre-pandemic levels. This disparity reveals the uneven recovery of the traditional casino experience, as some establishments continue to struggle in the aftermath of COVID-19.
Overall, the combined revenue from casinos, two racetracks with sportsbooks, and their digital partners reached $558 million in September, representing a 7.1 percent increase compared to the same month in 2022. This growth, driven significantly by online gaming and a slight boost from sports betting, illustrates the resilience of New Jersey’s gaming industry amid shifts in consumer behavior.
Record Total Gaming Revenue
The steady increase in online gambling has propelled Atlantic City’s total gaming revenue to its highest level for September in over a decade. For the third consecutive month, total gaming revenue surpassed the $500 million threshold, a feat that was only matched once last year, in August. This consistent revenue growth bodes well for the future of the gaming industry in New Jersey, as industry stakeholders continue to adapt to changing consumer preferences.
Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, which conducts extensive analyses of Atlantic City’s gaming industry, described the September results as “a mixed bag.” She noted the contrasts between the prosperous online segment and the struggles faced by traditional gaming. Such insights highlight the challenges casinos must navigate as they balance their physical and digital offerings.
The Future of Online Gaming in New Jersey
Through the first nine months of 2024, internet gaming accounted for an impressive 40.8 percent of the industry’s total revenue, emphasizing its rising significance within the overall business model. As online gambling continues to flourish, casinos may increasingly look to enhance their digital strategies, recognizing the importance of blending traditional gaming experiences with innovative online platforms.
In summary, the remarkable revenue growth witnessed in New Jersey’s online gambling sector is a testament to shifting consumer dynamics and the evolving nature of the gaming industry. As stakeholders adapt to this new reality, the future of both online and in-person gaming in Atlantic City holds promising potential, although challenges remain for traditional casinos. The ongoing progress in the online arena will undoubtedly shape the landscape of gambling in New Jersey for years to come.
