New Jersey’s Online Gambling Sector Hits Record High in October 2024
In a remarkable turn of events, New Jersey’s online gambling sector achieved a significant milestone in October 2024, with revenues soaring to an all-time high of $213.6 million. This impressive figure not only eclipses the previous record of $208 million set in September but also underscores a broader trend: the growing preference for digital gaming over traditional in-person casino experiences.
Internet Gambling Outpaces Brick-and-Mortar Casinos
The New Jersey Division of Gaming Enforcement recently released figures that reveal a pivotal shift in the state’s gambling landscape. For the first time, internet gaming revenue has consistently outpaced in-person casino earnings, with the exception of brief interruptions during the pandemic in 2020 when physical venues were forced to close. James Plousis, Chairman of the New Jersey Casino Control Commission, remarked on this trend, stating, “These two accomplishments are emblematic of the importance of online gaming as a component of the evolving casino business.”
In October, the total gaming revenue—which includes in-person, internet, and sports betting—reached $499.8 million, reflecting a 2.6% increase from October 2023’s $487.1 million. However, the brick-and-mortar casinos faced challenges, reporting an 8.5% year-over-year decline, with total in-person earnings dropping to $208.7 million.
Online Gaming: A Vital Growth Driver
The surge in internet gaming revenue is a vital growth driver for New Jersey’s gambling industry. October’s online gaming earnings rose by an impressive 28.1% compared to the same month in 2023, which recorded $166.8 million. Year-to-date, internet gaming revenues have skyrocketed to $1.95 billion, marking a 23.7% increase over the previous year.
This upward trajectory highlights the increasing significance of online platforms, which are capturing a larger share of consumer interest. Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, noted that despite a historically mild October, brick-and-mortar gaming operators in Atlantic City did not see substantial gains compared to 2023. Instead, they experienced an 8.5% decline year-over-year. Bokunewicz emphasized that the overall revenue for casinos was bolstered by internet gaming, which continued its record streak.
Casino Performance: Winners and Losers
Among Atlantic City’s nine casinos, only a few managed to report growth in in-person gambling revenue compared to October 2023. The top performer, Borgata, generated $53.4 million, although this represented a 6.1% decline year-over-year. Other notable performances included:
Hard Rock: $40.8 million, down 1%
Ocean Casino: $32.8 million, down over 24%
Tropicana: $17.6 million, up 7.4%
Caesars: $15 million, up 4.1%
Golden Nugget: $9.6 million, down over 20%
These figures illustrate a mixed bag for Atlantic City’s casinos, with only a few managing to thrive in the current climate.
Sports Betting Faces Challenges
While online gaming continues to flourish, the sports betting sector faced its own set of challenges. Revenues dropped by 16%, falling from $92.3 million in October 2023 to $77.5 million this year. Despite this monthly decline, year-to-date sports betting revenue has seen a positive trend, growing by 13.9% to reach $912.8 million compared to $801.3 million in 2023.
The Future of Online Gambling in New Jersey
The sustained growth of online gambling in New Jersey highlights its increasing significance within the state’s gaming ecosystem. Plousis emphasized the role of digital platforms in adapting to changing consumer preferences and contributing to overall revenue growth. As online gaming continues to expand, New Jersey’s casinos face the challenge of balancing their traditional in-person offerings with the booming digital market.
This ongoing transformation not only signifies a shift for New Jersey but also sets a precedent for other states exploring the potential of online gambling. The landscape of gaming is evolving, and New Jersey stands at the forefront of this exciting change.