New Jersey’s Online Gambling Revenue Hits Record High in September
New Jersey has made headlines again as its online gambling market reached unprecedented heights in September 2023. According to figures released by the New Jersey Division of Gambling Enforcement, the state’s casinos and their online partners garnered more than $208 million in online gambling revenue—the first time this figure has exceeded $200 million in a single month. This record is a testament to the increasing significance of internet gambling while traditional in-person gaming still grapples with revenues that have not fully rebounded to pre-pandemic levels.
The Rise of Online Gambling
The surge in online gambling is redefining the landscape of the gaming industry in New Jersey, showcasing a growing consumer preference for online platforms. "The ongoing success of internet gambling helped push Atlantic City’s total gambling revenue to its highest figure for September in over a decade," said James Plousis, chairman of the New Jersey Casino Control Commission. The online segment accounted for roughly 40.8 percent of the total gambling revenue for the industry in the first three quarters of the year.
While online platforms have flourished, it is important to note that not all revenue generated from internet gambling directly benefits the casinos. A portion of the earnings goes to third-party technology providers that supply the infrastructure for these gaming platforms, which leaves many casinos still reliant on their physical operations for substantial revenue.
In-Person Gambling: A Mixed Bag
Despite the exuberance surrounding online gambling, the in-person gambling scene in New Jersey remains uneven. Many casinos are still struggling to regain the levels of revenue seen before the COVID-19 pandemic. While total in-person gambling revenue for September exceeded the 2019 figure by $6 million, five of the nine casinos reported lower earnings from physical operations compared to five years ago.
The total revenue collected by New Jersey’s casinos and racetracks reached $558 million in September, marking a 7.1 percent increase compared to the same month in 2022. This steady growth is encouraging, but the figures highlight how dependent casinos have become on online gaming. Last year, total gambling revenue surpassed the $500 million threshold only in the August months, making this year’s consistent performance noteworthy.
Spotlight on Individual Casinos
The individual performance of New Jersey’s casinos tells a story of disparity. The Borgata casino led the market with $62.4 million in in-person earnings, reflecting a 15 percent increase from September 2019, bolstering its dominant position in Atlantic City’s gambling sector. In contrast, the Hard Rock casino experienced a 4.7 percent drop in in-person revenue, earning $44.6 million. Additionally, the Ocean Casino reported a staggering 28 percent decline, totaling just $28.4 million.
Other notable casinos including Caesars, Harrah’s, and Tropicana also saw in-person revenue drops ranging from 4.1 percent to 16.3 percent, painting a complex picture of the current gambling environment where online avenues are rising while brick-and-mortar operations face challenges.
Contributions from Sports Betting
When taking into account both internet gambling and sports betting, some casinos witnessed improved overall performance. For instance, Borgata’s total revenue, including sports betting, climbed to $120.2 million, reflecting a 12 percent increase. Meanwhile, Golden Nugget experienced a robust surge of 25.8 percent, totaling $72.8 million in revenue.
Conversely, some establishments like Resorts saw a 3.4 percent drop in total revenue despite robust online offerings, while the Ocean Casino’s overall earnings fell by 24 percent, highlighting that not all operators have benefited equally from the internet gambling boom.
Conclusion
As New Jersey’s gambling landscape continues to evolve, the impressive rise in internet gambling revenues signals a shift in consumer behavior and industry dynamics. While online platforms thrive, traditional casinos must adapt to a market that increasingly favors convenience and accessibility. The mixed results of in-person operations emphasize the necessity for innovative strategies that encompass both virtual and physical experiences, as the state navigates through this transformative period in the gambling industry.
As the trends shift and the industry evolves, the outcomes in New Jersey provide valuable insights into the future of gambling in a post-pandemic world—revealing both challenges and opportunities for operators, regulators, and consumers alike.
