New Jersey’s Online Gambling Market Reaches Record High in September

In an unprecedented leap, New Jersey’s internet gambling market hit a record-breaking $208 million in September, marking a historic milestone as online winnings surpassed the $200 million threshold for the first time. This notable surge emphasizes the growing role of online gaming in New Jersey’s gambling landscape, especially in a period when physical casinos face various challenges.

Transforming the Gaming Landscape

According to data released by the New Jersey Division of Gaming Enforcement, the rapid growth of internet gambling is reshaping the state’s gaming sector. While online revenues flourish, they pose a challenge for traditional brick-and-mortar casinos, which are required to share a portion of their revenue with various external technology partners. For many established casinos, the traditional in-person gambling experience remains a focal point, and the juxtaposition of these two revenue streams highlights a significant shift in player preferences.

Mixed Results for In-Person Gaming

While New Jersey reported an overall increase in gaming revenue, in-person gambling results tell a different story. In September, physical casino revenues gained $6 million compared to the same month in 2019. However, five out of nine Atlantic City casinos reported lower in-person winnings compared to five years ago. This decline suggests that the exuberant growth of online gaming is accompanied by a decline in the traditional gaming experience, compelling casinos to rethink their strategies.

Strong Overall Revenue Performance

Despite the challenges faced by in-person gaming, the total gaming revenue for New Jersey in September reached an impressive $558 million—a 7.1% increase from the previous year, bolstered by both internet gambling and sports betting activations. This statistic is particularly significant, as it marks the third consecutive month in which total gaming revenue has exceeded $500 million; last year, this benchmark was achieved only once, during August.

James Plousis, chairman of the New Jersey Casino Control Commission, highlighted the role of internet gaming in propelling Atlantic City’s total gaming revenue to its highest September figure in over a decade.

Insights from Industry Experts

Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, described the September figures as revealing a "mixed bag." While the substantial growth in online revenues is noteworthy, it underscores a concerning lag in the traditional gaming sector, emphasizing the need for casinos to adapt to the changing tides of player behavior and preferences.

The Rising Share of Online Gaming

The increasing dominance of online gaming is evident in its contribution to Atlantic City casinos’ revenues. During the first three quarters of the year, internet gaming accounted for 40.8% of the total revenue generated by these operators. This statistic reinforces the narrative of a shifting dynamic within the industry, as online platforms capture a growing share of the gambling market.

Performance of Major Casinos

A closer examination of individual casino performances reveals a varied picture. Borgata led the way in September with $62.4 million in in-person winnings, reflecting a 15% increase. In contrast, Hard Rock reported $44.6 million, a slight decline of 4.7%. Other major players, including Caesars, Harrah’s, and Tropicana, all reported revenue decreases, while Golden Nugget demonstrated resilience with a robust 25.8% increase in total winnings when including both internet and sports betting revenues.

Conclusion

As New Jersey’s internet gambling market continues to evolve, it is clear that a new chapter in the state’s gaming history is being written. The record-breaking revenues highlight a significant shift in player behavior towards online platforms, underscoring the importance of adaptability within the gaming sector. With both the exciting potential of internet gambling and the ongoing challenges faced by traditional casinos, the future of New Jersey’s gaming landscape remains a compelling narrative worth watching.

In this transformative era, both sectors will need to strategize effectively to cater to changing consumer demands and preferences, ensuring both the old and new continue to thrive in a mutually beneficial ecosystem.