New Jersey’s Gaming Landscape: A Shift Towards Online Dominance
In February 2025, New Jersey’s gaming landscape experienced a significant transformation as online gaming revenues eclipsed those generated by traditional in-person casino activities. This pivotal moment was underscored by a report from the New Jersey Division of Gaming Enforcement, which revealed total gaming revenue of $484.8 million, reflecting a 5.1% increase from the previous year. This trend marks a notable shift in consumer preferences and highlights the growing importance of digital platforms in the gaming industry.
Online Gaming Surges Amid Challenges for Traditional Casinos
While the overall gaming revenue in New Jersey saw an uptick, the story for traditional casinos was less rosy. The revenue generated from patrons physically present at casinos amounted to $203.4 million, representing a 3.8% decline year-over-year. This downturn illustrates the challenges faced by brick-and-mortar establishments as they grapple with changing consumer habits and increased competition from online platforms. In stark contrast, internet-based gaming activities thrived, bringing in $207.7 million—a remarkable 14% increase from the same period last year. This growth is particularly impressive considering the adverse weather conditions that month and the fact that February 2025 had one less day than the previous leap year.
A Closer Look at Revenue Sources
The detailed breakdown of revenue sources reveals a mixed bag of results across various sectors within the gaming industry:
Casino Wins: The nine casino hotels in New Jersey collectively reported a win of $203.5 million, continuing a slight downward trend with a 3.8% drop compared to February 2024.
Internet Gaming Win: Reflecting robust growth, the internet gaming win stood at $207.8 million, marking a notable 14% increase year-over-year.
Sports Wagering Gross Revenue: This segment saw a revenue of $73.6 million, up by 8.9% from the previous year, despite a slight decrease in the total amount wagered on sports during the month.
Individual Casino and Online Platform Performances
The performance of individual casinos and their online counterparts varied significantly, showcasing the diverse landscape of New Jersey’s gaming industry:
Borgata Hotel Casino & Spa: This establishment led the in-person gambling wins with $49.9 million, although this figure represented a decrease from the previous year, highlighting the challenges faced by traditional venues.
FanDuel and DraftKings: These online giants dominated the sports betting scene, with FanDuel pulling in an impressive $33.8 million, reflecting a 27.2% increase. In contrast, DraftKings experienced a decline, illustrating the competitive nature of the online betting market.
Expert Insights on the Shift
Jane Bokunewicz, director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism, provided valuable insights into this evolving landscape. She noted that a quieter month for in-person visitors created an opportunity for the online sector to flourish. Bokunewicz stated, “A less busy month for in-person patrons opened the door to more internet gaming activity and the opportunity for online casino operations to pass brick-and-mortar for a second consecutive month with a 14% increase over February 2024.” This observation underscores the shifting dynamics between online and traditional gaming.
The Future of Gaming in New Jersey
As the gaming industry navigates through the offseason, it is essential to recognize that traditional casinos typically regain traction during the summer months. However, the ongoing dynamic between online and in-person gaming continues to evolve. New Jersey remains a leading market in sports betting, reflecting a complex interplay of consumer behavior, seasonal impacts, and changing gaming preferences. The future of gaming in the state will likely hinge on how well traditional casinos adapt to the growing online competition and how they can leverage their unique offerings to attract patrons back to their venues.
In this rapidly changing environment, both consumers and industry stakeholders will need to stay attuned to the trends shaping the gaming landscape, as the balance between online and in-person experiences continues to shift.