New Jersey’s Online Gambling Market Hits Record Highs
New Jersey’s online gambling market has reached an impressive milestone, as reported by the New Jersey Division of Gaming Enforcement: $208 million in revenue for September 2023. This marks a significant first, as it is the first time that the state’s monthly online winnings have exceeded the $200 million threshold. This achievement is particularly noteworthy for the state’s gambling landscape, which has been growing increasingly dependent on online gaming in the face of challenges to physical casino revenues.
The Growing Significance of Online Gambling
The surge in online gambling revenue highlights its escalating importance within New Jersey’s gaming sector. With players flocking to digital platforms, brick-and-mortar casinos are beginning to feel the pressure, as their revenue streams struggle to keep pace. While the overall in-person revenue for September slightly increased by $6 million when compared to the same month in 2019, it’s significant to note that five out of the nine Atlantic City casinos reported lower in-person winnings than five years ago. This trend suggests a shifting dynamic, with many players opting for the convenience and variety offered by online gambling.
Overview of Gaming Revenue
The overall gaming revenue for New Jersey in September reached $558 million, reflecting a 7.1% increase from the previous year, primarily driven by both internet gambling and sports betting. This achievement is particularly significant as it marks the third consecutive month where total gaming revenue has surpassed $500 million—a benchmark that was only met once in the entirety of the previous year. James Plousis, chairman of the New Jersey Casino Control Commission, aptly noted that “the ongoing success of internet gaming helped push Atlantic City’s total gaming revenue to its highest figure for the month of September in over a decade.”
A Mixed Bag of Results
According to Jane Bokunewicz, the director of the Lloyd Levenson Institute at Stockton University, September’s figures present a “mixed bag.” While internet revenues skyrocketed, traditional land-based gaming revenues seem to be lagging, casting a shadow on the physical casino landscape. For instance, Borgata, one of Atlantic City’s most prominent casinos, won $62.4 million in September, a 15% increase from the previous year. In contrast, Ocean Casino Resort faced a staggering 28% decline, winning only $28.4 million.
The performance of the other Atlantic City casinos varied considerably:
- Hard Rock: $44.6 million (down 4.7%)
- Caesars: $20.5 million (down 4.1%)
- Harrah’s: $18.6 million (down 16.3%)
- Tropicana: $17.9 million (down 16.3%)
- Resorts: $14.3 million (down 3.9%)
- Bally’s: $12.5 million (down 4.4%)
- Golden Nugget: $11 million (down 12.5%)
The Share of Online Gambling
The exponential growth in internet gaming is evident, with online platforms accounting for 40.8% of total revenue for Atlantic City operators during the first three quarters of the year. This percentage underscores the changing nature of gambling habits in New Jersey, where the appeal of gaming from the comfort of home, combined with innovative online offerings, is drawing in players who may have once preferred traditional casinos.
Future Considerations for Physical Casinos
As New Jersey’s online gambling market continues to evolve, physical casinos are likely to face increased challenges. With a growing number of players gravitating towards online platforms, traditional casinos must innovate and adapt to survive in this competitive landscape. This may involve enhancing in-person experiences, improving customer service, or diversifying their offerings to retain existing customers while attracting new ones who are still hesitant to engage with physical venues.
Conclusion
New Jersey’s record-breaking online gambling revenue reflects profound shifts in the gaming industry, pushing the boundaries of traditional gambling. As online platforms continue to revolutionize how individuals engage with gaming, the future for in-person casinos must rely on creative strategies to coexist with and complement the booming online gambling market. The state’s continued commitment to fostering a robust gambling environment will be crucial in navigating these challenges and ensuring future success across all gaming avenues.
