Hitting New Heights: A September to Remember for New Jersey’s iGaming Industry
New Jersey’s gaming landscape has witnessed a remarkable surge in iGaming revenue, with September 2023 being a particularly noteworthy month. The state garnered a staggering $208.1 million in iGaming revenue, marking a 27.1% increase year-over-year and shattering the previous monthly record of $198.4 million set just a month earlier in August. This growth underscores the increasing popularity and acceptance of online gaming, setting a promising tone for the future of the industry.
Dominance of Online Gaming
The impressive revenue figures highlight the extraordinary performance of various online gaming attractions, particularly online slot machines and table games, which collectively experienced a 27.6% uptick, generating $205.9 million in revenue. These figures indicate not only sustained consumer interest but also a shift in gaming preferences, with players favoring the thrilling offerings of online platforms. However, it’s worth noting that not all segments fared well; online poker faced challenges, recording a 6.9% decrease in revenue to $2.2 million. This decline is an area of concern as operators might need to strategize to rekindle interest among poker enthusiasts.
A Tale of Two Industries: Online vs. Land-Based Casinos
While the report paints a positive picture for New Jersey’s online gaming sector, it concurrently casts a shadow over the performance of land-based casinos. In a mixed bag of results, the combined revenue from online and retail casinos hit $558.3 million, reflecting a modest 7.1% year-over-year increase and a slight 0.6% rise compared to August. This growth, however, contrasts sharply with the broader struggles faced by land-based casinos in Atlantic City.
Atlantic City has been grappling with various challenges, including rising operational costs, intermittent travel disruptions from weather events, and a notable anti-smoking campaign advocated by a coalition of casino employees. These factors collectively contribute to a less vibrant atmosphere for traditional casinos, leading to a lukewarm revenue performance.
For the first nine months of the year, land-based casinos in Atlantic City recorded a revenue of $2.15 billion, reflecting a 0.9% decline compared to the previous year. Conversely, the online sector continues to thrive, reporting a commendable 23.2% increase in revenue. Moreover, sports betting revenue also witnessed a healthy 17.8% rise, further highlighting the dichotomy within the gaming industry.
Record Revenues Among Online Operators
September marked a landmark month for online casino operators, with six platforms achieving unprecedented revenue levels. Leading the pack was DraftKings, reporting a record-breaking $45.8 million. FanDuel and BetMGM followed closely behind with impressive revenues of $45.3 million and $26 million, respectively. This robust performance indicates growing market competition and the effectiveness of promotional strategies employed by these operators.
Within the realm of land-based casinos, Resorts Casino Hotel emerged as a significant player, generating $52.9 million in online revenue, bolstered by its partnerships with leading online brands like DraftKings, ESPN Bet, and PokerStars. Notably, Borgata stood out in the in-person casino sector, generating $62.4 million; however, it was the only land-based casino to report an uptick in success.
The struggles of other casinos were evident, as Hard Rock experienced a decline of 4.7% in in-person gaming revenue, totaling $44.6 million. Ocean Casino, which reported the third-highest revenue at $28.6 million, endured a far more drastic 28% drop. In a climate where online gaming continues to thrive, these traditional establishments are finding it increasingly difficult to maintain their foothold.
Sports Betting Surge
Adding to the positive accolades for New Jersey’s gaming industry, sports betting revenue soared to $119.6 million in September, reflecting a 7.6% year-over-year increase and an astonishing 90.7% jump from August’s $62.7 million. The resurgence in sports betting can be attributed to the much-anticipated return of the NFL season, alongside MLB and WNBA teams entering their respective postseason stages. As more bettors flock to online platforms, the potential for record revenue in sports betting remains high.
Conclusion
September 2023 has undoubtedly been a month of significant achievements for New Jersey’s iGaming industry, with record-breaking online earnings overshadowing the existing struggles of brick-and-mortar establishments. As the online gaming sector continues to expand and innovate, traditional casinos must adapt to the evolving landscape or risk being left behind. The overall picture reveals a dynamic interaction between online and retail operations, emphasizing the need for strategic planning and adaptability as the industry looks forward to an uncertain yet exciting future.
