New Jersey’s iGaming Market Records Unstoppable Growth

Article by : Erik Gibbs Oct 21, 2024

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New Jersey’s iGaming market hit a new milestone in September, with Atlantic City’s casinos and their online and technical partners collectively winning more than $208 million. This marks the first time the state’s online gambling market has surpassed the $200 million threshold in a single month, according to the latest data from the New Jersey Division of Gaming Enforcement.

The surge in online gambling revenue highlights the growing importance of digital platforms to Atlantic City’s casino industry, as traditional in-person gambling revenues remain uneven. While iGaming is quickly becoming a vital component of overall casino earnings, it’s not all profits for the casinos, as they must share this revenue with outside tech partners and service providers. 

However, despite the rapid growth of online betting, many of Atlantic City’s physical casinos continue to struggle in recovering their pre-pandemic business levels. Five of the city’s nine casinos earned less from in-person gamblers last month than they did in September 2019, reflecting the ongoing challenges in drawing customers back to brick-and-mortar gaming floors.

In total, the state’s casinos, two horse racetracks that accept sports bets, and their partners took in $558 million in revenue from all sources in September, including online gambling, sports betting, and in-person gaming. This figure represents a 7.1% increase from the same month last year. For the third consecutive month, total gaming revenue topped $500 million—an achievement that was only matched once in all of 2022.

However, some experts point out that while Internet gambling continues to thrive, it may be leaving traditional casino revenues behind. Indeed, while some casinos saw gains in in-person revenue, others struggled. 

The Borgata was the top performer for in-person winnings, raking in $62.4 million, an increase of 15% compared to last year. Hard Rock, however, saw its in-person earnings drop by 4.7% to $44.6 million, and Ocean Casino recorded a sharp decline of 28%, bringing in just $28.4 million. Several other casinos, including Caesars, Harrah’s, Tropicana, and Golden Nugget, also reported declines in their in-person revenues.

When factoring in revenue from both Internet gambling and sports betting, Borgata once again led the pack with total earnings of $120.2 million, an increase of 12% from 2023. Golden Nugget, which has a strong online presence, saw an uptick of 25.8%, earning $72.8 million in total. Other casinos, such as Hard Rock and Bally’s, also reported overall revenue gains thanks to online and sports betting, despite declines in their in-person gambling revenue.

In total, the casinos and racetracks retained $119.5 million in revenue from almost $1.1 billion wagered across all gambling platforms, including online games, sports betting, and in-person casino play.