Internet gambling has recently become a significant part of New Jersey’s economy. The pandemic lockdown made a lot of gamblers shift to gambling online. And since then, many have preferred to maintain this choice.
The Post-pandemic revenue reports for online gambling in Garden City were impressive. $1.4 billion and $1.7 billion were generated in 2021 and 2022, respectively. In 2023, this figure rose by 15% to a whopping $1.92 billion.
In August 2024, New Jersey’s internet gambling market reached another historic milestone, recording $198.4 million in revenue, an increase of 28% compared to the previous year. As of 2019, internet gaming revenue was less than $500 million. What led to this sudden surge in revenue?
Today’s casino news highlights the impacts of internet gambling and how it is gradually reshaping future casinos’ playing methods.
Internet Gambling: A New Frontier for High-Stakes Play
According to reports from the Division of Gaming Enforcement in New Jersey, the internet gambling market is having a great year.
The market revenue for August 2024 was $198.4 million, which is more than the $197.2 million reported in March this year. And compared to the August 2023 record, this represents 28% growth.
Undoubtedly, the increasing popularity of online casinos and sports betting platforms contributes to this increase in revenue. As the demand for convenient online casino games with real money experiences rises, internet gambling remains a major revenue stream for the state.
Online sports betting, poker, and slots are the gambling activities contributing to this progressive growth. They have significantly impacted the overall turnover reported this year. About $698 million in bets made in New Jersey in August were related to sports, bringing the total betting revenue to $62.7 million.
The revenue from online slot games has improved by 23.2%, while poker declined by 3.5%. The income generated from online gaming has reached $1.52bn. There is a good chance that by the end of the year, this figure should be 2 billion.
Atlantic City’s Land-Based Casinos Declines
While internet gambling revenue has been reaching new heights, physical casinos have fallen short in gains. Unsurprisingly, internet gambling gains have outpaced Atlantic City’s casinos.
This year, six of the nine legally licensed casinos haven’t seen better turnover in people playing in person at the casino. These figures are reportedly diminishing compared to August 2019.
Casinos earned $294 million from players physically playing on their premises in 2019, a 4.9% increase over the previous year. In August 2024, only three out of the nine casinos in Atlantic City (Borgata, Hard Rock, and Ocean) profited from in-person gaming. Six establishments experiencing losses hurt the overall land-based casino gaming revenue.
Some casinos share some of their internet gambling gains with various third parties, such as sportsbooks and tech platforms. This means the casino doesn’t receive its earnings as a whole and would prefer one-on-one player and physical casino gambling. That way, it profits even more.
Impact of the Growth of Internet Gambling and Future Projections
The upward growth of internet gambling in New Jersey is impacting its gambling market at large. It is providing substantial revenue streams and expanding the industry in the Atlantic City. Players have leveraged the opportunity of legal support for online gaming in the state and are now continuing to find it more convenient.
However, while this trend presents opportunities for innovation, land-based casinos may need to adapt by integrating digital solutions to retain relevance and not fade in the long run.
So, in the future, though we are not sure, a hybridized gambling model may be introduced.
It would be a blend of physical and online gambling, offering punters new ways to engage in this beloved activity.
Final Thoughts
Internet gambling is flourishing in the United States in cities where it is permitted. New Jersey operators had a good run in August, although it was not so good for in-person casino establishments. Nevertheless, there’s no denying that online gaming is more convenient for players. By the end of the year, there will be new revenue reports, and we will update you.
