Strong Revenue Growth for New Jersey’s Licensed Gambling Operators in September
September 2023 marked a significant milestone for the licensed gambling operators in New Jersey, demonstrating an impressive rebound as the industry continues to flourish post-COVID-19. According to the latest report released by the New Jersey Division of Gaming Enforcement (DGE), the state’s gambling sector experienced a substantial growth surge, reflecting a robust gambling environment that is adapting and thriving in today’s economy.
Gaming Revenue Increases in September
The DGE’s report disclosed that gambling operators, including casinos and racetracks, reported a staggering revenue total of $558.3 million in September alone. This figure signifies a notable 7.1% increase compared to the previous year, which recorded a revenue of $521.5 million in September 2022.
Furthermore, the figures are even more promising when assessed on a year-to-date basis. New Jersey’s gambling revenue has reached $4.72 billion so far in 2023, outpacing last year’s total of $4.29 billion for the same period, translating to an impressive 10.1% increase. This revenue growth is indicative of a vibrant gambling market fueled by several revenue streams, particularly online gaming and sports betting, both of which have shown remarkable performance.
All Forms of Gambling Record Increase in Revenue
A closer analysis of September’s figures unveils a thriving gambling ecosystem in New Jersey. Internet gaming stood out with a remarkable revenue of $208.1 million, reflecting a robust 27.1% increase from the $163.8 million reported in September 2022. This surge is not only impressive for a single month but also highlights a continuing trend in the online segment, as evidenced by the year-to-date internet gaming win now reaching $1.73 billion, which represents a spectacular 23.2% year-over-year increase.
In parallel, sports betting revenue also exhibited strong growth, accumulating $119.6 million in gross revenue for September. This figure marks a 7.6% rise when juxtaposed against the same period last year, underscoring the growing popularity of sports betting across the state.
Interestingly, while the online gaming sector showcased the most substantial revenue uptick, the land-based casino sector recorded the smallest increase in revenue. Nevertheless, land-based casinos remain a vital component of the gambling landscape, bringing in $230.6 million in revenue, which accounts for over 50% of total revenue, and reflects a 6.5% year-over-year increase.
Several Casino Licensees Reported Revenue Decrease
Despite the overall positive trend, not all operators enjoyed the benefits of growth. Out of the total 13 licensed gambling operators in New Jersey, five reported a decrease in revenue in September compared to the same month last year. This illustrates the competitive nature of the industry and the varying performance among different operators.
While recent revenue figures present a favorable comparison to the previous year, they must be interpreted cautiously. The data from September is not directly comparable to pre-pandemic levels, specifically to September 2019, which limits the depth of the analysis. For context, the total revenue in September 2022 was recorded at $485 million, showcasing a notable year-over-year increase even amid challenges facing certain operators.
A Look at Challenges and Criminal Activities
The gambling sector in New Jersey is not without its challenges. Recently, news emerged of a cheating scheme that took place at Encore Boston Harbor Casino, resulting in legal consequences for the involved parties. Two individuals— a dealer and a player — have been sentenced due to their engagements in the fraudulent activity that dates back to 2019, leading to an estimated loss of $15,000 for the casino operator. Such incidents serve as a reminder of the regulatory vigilance required to maintain the integrity of the gambling industry.
Conclusion
As highlighted in this latest DGE report, New Jersey’s gambling operators are experiencing a formidable recovery and growth trajectory, leveraging multiple revenue sources to bolster the state’s economy. With a significant rise across various forms of gambling, including a booming online gaming sector, the future looks promising for the licensed gambling industry in New Jersey. Yet, as operators celebrate this success, the challenges they face, both competitive and regulatory, cannot be overlooked. As the market continues to evolve, ongoing vigilance and adaptability will be crucial for sustained success.
