New Jersey’s Internet Gambling Revenue Reaches Record High of $198 Million
In a significant milestone for the gambling industry in New Jersey, internet gambling revenue soared to an all-time high of $198.4 million in August. This marked a substantial 28% increase from the previous year, showcasing the growing popularity of online gambling platforms in the state. The figures released by the New Jersey Division of Gaming Enforcement highlighted the continued success of internet gambling, even as traditional land-based casinos faced challenges in the aftermath of the COVID-19 pandemic.
Challenges for Land-Based Casinos
While internet gambling thrived, the scenario was less optimistic for Atlantic City’s land-based casinos. Despite a 4.9% increase in revenue from in-person gamblers compared to the previous year, six out of the nine casinos reported lower winnings from physical premises in August 2019. This trend indicated a struggle for the traditional brick-and-mortar casinos in attracting customers back to their establishments.
The Impact of Sports Betting and Online Gambling
When considering revenue from sports betting and online gambling along with in-person winnings, the total amount won by casinos and horse tracks in partnership with online platforms exceeded $555 million. This represented a 4.4% increase from the previous year, highlighting the significant contribution of sports betting and internet gambling to the overall gaming revenue in the state.
Importance of Internet Gambling
Jane Bokunewicz, the director of the Lloyd Levenson Institute at Stockton University, emphasized the growing importance of internet gambling in the Atlantic City gambling market. She noted that online gaming activities, including sports betting, accounted for nearly half of the total gross gaming revenue for Atlantic City operators. The consistent performance of internet gambling, with over $190 million in revenue recorded in four out of the last eight months, underscored its pivotal role in sustaining the resort’s gambling industry.
Individual Casino Performances
Among the casinos in Atlantic City, only three establishments – Borgata, Hard Rock, and Ocean – reported higher winnings from in-person gamblers in August compared to the pre-pandemic levels in August 2019. Borgata emerged as the top performer with $74.2 million in revenue, followed by Hard Rock with $55.3 million and Ocean with $44 million. The varying performances of the casinos highlighted the challenges faced by the industry in recovering from the impact of the pandemic on traditional gambling activities.
Impact of Sports Betting Revenue
Despite a decline of nearly 35% in sports betting revenue in August, experts attributed this trend to a statistical anomaly caused by exceptionally high revenue figures in August 2023. The comparison with the previous year’s data skewed the results, leading to a misleading interpretation of the current state of sports betting in New Jersey. Bokunewicz clarified that the fluctuation in sports betting revenue should be viewed in the context of broader market trends rather than as a standalone indicator.
Role of Online Platforms
Resorts Digital, the online arm of the casino industry, reported a revenue of $69.2 million in August, reflecting a 30.2% decrease compared to the previous year. This decline highlighted the challenges faced by online gambling platforms in maintaining consistent revenue streams amidst evolving market dynamics. The performance of online platforms underscored the need for continuous innovation and adaptation to meet the changing demands of the gambling audience.
Evolution of the Gambling Market
With nearly $699 million worth of sports bets placed in August, the gambling market in New Jersey witnessed a shift in dynamics following the cessation of sports betting activities at Freehold Raceway. The consolidation of sports betting operations at Meadowlands Racetrack and Monmouth Park highlighted the evolving landscape of the industry, with a focus on optimizing operational efficiencies and maximizing revenue generation opportunities.
Conclusion
The record-breaking internet gambling revenue in New Jersey underscored the transformative impact of online gaming on the state’s gambling industry. While traditional land-based casinos faced challenges in attracting customers back to their premises, online platforms continued to thrive, contributing significantly to the overall gaming revenue. The industry’s resilience and adaptability in the face of evolving market dynamics showcased its ability to navigate challenges and seize opportunities for growth. As the gambling landscape continues to evolve, stakeholders in the industry must embrace innovation and collaboration to ensure continued success and sustainability in the competitive market environment.