NJ Online Gambling Revenue Sees Promising 9.5% Annual Growth
The gambling industry in New Jersey is showing no signs of slowing down, reporting a 9.5% increase year-on-year, resulting in revenue skyrocketing to $462.7 million. This stat covers results reported by casinos and sportsbook operators including, but not limited to those listed on NoDeposit.Guide and other top tier affiliates.
The figure also reflects growth across almost all market segments, including casinos, sports bets, racetracks, and their online partners. However, the newly acquired data revealed that in-person gambling took a hit, with earnings from physical casinos experiencing a 1.6% dip to $231.4 million. This is particularly significant since Atlantic City casinos view these revenue figures as key indicators of the industry’s health.
Despite casino revenue being down this year, according to the chairman of the New Jersey Casino Control Commission, James Plousis, it was still the second-strongest April in 11 years. Unsurprisingly, online gambling remained strong, increasing 16% from last year, with revenue reaching $159 million. Meanwhile, sports betting achieved an astonishing 43.6% increase from the previous year, clocking in $72.3 million. It was reported that in New Jersey, close to $834 million was wagered on sports in April, with $798.5 million wagered online and $35.5 million at retail sportsbooks.
Growing Sports Betting Market
In just a few short years, sports betting has gone from a dark market vice to an acceptable pastime across the country, with New Jersey helping take the crown as the national leader in the industry. The state was able to achieve success thanks to the overturning of the Professional and Amateur Sports Betting Act (PASPA), which gave Nevada a legal monopoly on the industry, by the Supreme Court in 2018. As a result, sports betting is now legal in more than 30 states, 18 of which offer some form of online wagering.
While the Garden State may have had its fair share of lawsuits along its way to the top, its prime location has helped catapult its sports betting revenue. It also doesn’t hurt that New Jersey has a very large sports culture, housing six professional sports teams, including the NFL’s New York Jets and New York Giants. The state also has the most lenient rules and regulations for sports betting of any jurisdiction in America, making it attractive for many players and setting the tone for other states to follow suit.
The ability to find available talent also helped with New Jersey’s success, with the state being regarded as one of the top hubs for fintech in the U.S. as well as ranking within the top two regions for software, web developers, and cybersecurity analysts. There are also reportedly over 15,000 financial services establishments within the state, employing over 222,000 workers. New Jersey is also home to a number of leading colleges, ranking second in the U.S. for the most STEM degree awards.
Dethroning Nevada
While Nevada has been the undisputed champion for gambling in the United States since the 1950s, New Jersey’s revenue is positioning the state to take over thanks to Atlantic City’s ability to attract big-name bettors over the years, including Barron Hilton, Steve Wynn, and Donald Trump. Vegas is also very reliant on land-based casino revenue, which took a major hit during the pandemic due to casino closures and travel restrictions. Unlike Nevada, however, New Jersey does not require online bettors to register in person, allowing its online casino industry to continue to flourish.
The continuous growth in internet gaming and sports wagers has seen Atlantic City’s total gaming revenue reach above $400 million for the second consecutive month. Within the first four months of 2023, casinos in Atlantic City generated almost half the total gaming revenue generated for the whole of 2019.
This type of growth is usually reserved for the summer months, leading Plousis to believe that many more months of this type of revenue and even more are yet to come as they expect Atlantic City to flourish in the summer. Additionally, according to Jane Bokunewicz, the faculty director of the Lloyd Levenson Institute at Stockton University, this newly found momentum could not only help to drive up earnings over the summer season, but it can also help to offset the rising operating costs due to mass labour shortages and the increase in workers wages due to the union contract talks.
