Internet gambling in New Jersey reached a new milestone in September, with Atlantic City’s casinos and their online partners generating over $208 million in revenue.
This historic achievement underscores the growing importance of internet-based gambling as in-person gaming struggles to recover fully from pre-pandemic levels.
Record-Breaking Revenue of $208 Million
For the first time, monthly internet gambling revenue in New Jersey exceeded $200 million. According to the state Division of Gaming Enforcement’s latest report, online gambling in Atlantic City accounted for a significant portion of the casinos’ earnings, marking a pivotal shift in the industry:
- Total internet gambling revenue: Over $208 million
- Historical significance: First month to surpass $200 million in online earnings
- Comparison with physical casinos: In-person casino revenue continues to lag behind pre-2019 levels
In September 2024, as a legal online gambling resource mentions, the NJ market reached an unprecedented milestone by generating over $208 million in revenue.
This achievement highlights the rapid growth and increasing significance of internet-based gaming within the state’s gambling industry, demonstrating how crucial online gambling has become for Atlantic City’s casinos and their partners.
Factors Contributing to the Record Revenue
Several factors contributed to the historic $208 million in internet gambling revenue. These include a combination of market trends, technological advancements, and changing player preferences:
Increased Accessibility
The continued expansion of internet gambling platforms in New Jersey has made it easier for players to access a wide variety of games.
With improved website interfaces, mobile apps, and seamless payment options, online casinos now provide an accessible and convenient experience that attracts a broad demographic.
Shift in Consumer Preferences
Since the COVID-19 pandemic, many gamblers have shifted towards online platforms, a trend that has persisted even as physical casinos have reopened.
Online gambling offers a level of convenience, privacy, and flexibility that physical locations can’t match, allowing players to game from the comfort of their homes or on the go.
Increased Variety and Quality of Games
The partnerships between AC casinos and tech providers have resulted in a vast and high-quality selection of online games.
From live dealer games to interactive slot machines and innovative betting options, online casinos are creating diverse gaming experiences to keep players engaged.
Sports Betting Integration
September is an active month for sports betting, with the NFL, college football, and MLB seasons overlapping.
Many online casinos in New Jersey also offer integrated sports betting options, allowing gamblers to place bets on live games while enjoying traditional casino games, thereby boosting the overall online revenue.
Internet Gambling’s Role in the State’s Revenue Growth
The new record underscores the pivotal role of online gambling in driving the state’s gaming revenue, particularly at a time when in-person gambling revenue is still fluctuating. By surpassing $200 million, internet gambling has reinforced its position as a major revenue stream for New Jersey’s gambling market:
Online gambling has become a core part of the industry’s revenue structure. As physical casinos struggle to return to pre-pandemic levels, online earnings are playing a more crucial role in stabilizing and boosting the overall revenue.
The growth in online gambling revenue supports local economic activities by contributing to tax revenue, employment, and business opportunities for technology and marketing providers partnering with casinos.
AC Casinos: A New Revenue Landscape
With in-person gambling revenue still below pre-pandemic levels for some properties, online gambling offers a critical revenue source. This transformation in revenue distribution is reshaping Atlantic City’s gambling landscape, as casinos adapt to a more balanced model that combines in-person and online earnings:
This is the first time that online gambling revenue in New Jersey has exceeded $200 million in a single month, marking a major benchmark for both AC and the state.
The consistent growth in online revenue over recent years suggests that internet gambling will continue to play an increasing role in the financial success of New Jersey’s casinos.
September’s Revenue in Context: A Look Back at Past Performance
The $208 million milestone stands out when viewed against historical trends. In recent years, online gambling has steadily grown in New Jersey, but this September figure marks a sharp increase compared to previous months and years:
September’s revenue represents a significant jump, setting a record for monthly online earnings in New Jersey. Previous months had seen strong but comparatively lower online revenue figures, making this $208 million achievement a historic one.
Compared to September 2023, the growth in internet gambling is notable, showing an increase that aligns with the broader trend of rising online gaming revenue in the state.
Revenue Allocation: Sharing the Profits
Although the $208 million total is impressive, it’s essential to recognize that this revenue is not entirely retained by the casinos. Due to the structure of online gambling operations, profits must be shared with various partners and service providers:
AC casinos partner with software developers, payment processors, and marketing agencies to deliver a comprehensive online gaming experience. These partnerships involve profit-sharing agreements, which mean that a portion of the online revenue goes to these external partners.
Because of this revenue-sharing model, Atlantic City’s casinos consider in-person gambling to be their core business. Unlike online gambling revenue, which is divided among stakeholders, the revenue from in-person gambling is retained primarily by the casinos themselves.
What the Future Holds for New Jersey’s Internet Gambling Market
The record-breaking revenue in September sets the stage for further growth in New Jersey’s online gambling sector. Looking ahead, there are several trends and potential developments that could influence future revenue levels:
- Expanded game offerings: As the demand for diverse online gaming options grows, casinos may continue to innovate by introducing new types of games and betting options, potentially increasing player engagement and revenue.
- Increased competition: With other states observing New Jersey’s success, more jurisdictions may adopt online gambling laws, which could lead to competition. However, New Jersey’s established market gives it a competitive edge.
- Legislative support and regulation: As the state government recognizes the positive financial impact of online gambling, it may continue to support the industry with favorable regulations that promote responsible gambling while fostering growth.
The $208 million record serves as a testament to the resilience and adaptability of New Jersey’s gambling industry. It underscores the potential of internet-based gaming and highlights a shift in the state’s gambling economy, where online revenue plays an ever-growing role in shaping the future.
Shared Revenue Model Limits Casino Earnings
While the overall online revenue appears robust, it’s important to note that this amount is not entirely retained by the casinos. Instead, these earnings are distributed among various stakeholders:
- Revenue split: Casinos share online gambling revenue with technical and online service providers
- Core business focus: Casinos continue to prioritize in-person gamblers, as this revenue is not divided
Mixed Performance in Physical Casino Revenue
Although combined revenue from in-person and internet gambling exceeded September 2019’s totals by $6 million, many Atlantic City casinos have yet to match their pre-pandemic in-person earnings.
- Overall increase: $6 million more than September 2019 in in-person revenue
- Individual performance: Five out of nine casinos earned less in-person revenue compared to five years ago
Notable In-Person Casino Earnings (September 2024)
- Borgata: $62.4 million, up 15%
- Hard Rock: $44.6 million, down 4.7%
- Ocean: $28.4 million, down 28%
- Caesars: $20.5 million, down 4.1%
- Golden Nugget: $11 million, down 12.5%
Combined Internet, Sports Betting, and In-Person Revenue Surpasses $500 Million
The total gaming revenue, including internet, sports betting, and in-person gambling, reached $558 million in September, marking a 7.1% increase from the previous year.
This is the third consecutive month that total gaming revenue has exceeded the $500 million mark, setting a record for September.
Major Contributors to Total Revenue
- Borgata: $120.2 million, up 12%
- Golden Nugget: $72.8 million, up 25.8%
- Bally’s: $24.1 million, up 19.2%
- Hard Rock: $64.4 million, up 10.8%
Industry Experts Weigh In on Internet Gambling’s Impact
Experts suggest that internet gambling’s rapid growth is reshaping the revenue landscape for Atlantic City’s casinos.
According to Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, September’s numbers highlight a shift in revenue reliance:
- Internet gaming’s contribution: Accounts for 40.8% of Atlantic City’s total revenue year-to-date
- Trend insights: “Internet revenues seemed to leave brick-and-mortar gaming revenues behind.”
Sports Betting: A Supplementary Revenue Stream
In addition to internet gaming, sports betting played a supporting role in overall revenue. The casinos, along with two racetracks that offer sports betting, kept $119.5 million in revenue from a total of nearly $1.1 billion wagered.
- Revenue from sports betting: $119.5 million retained
- Total amount wagered: Approximately $1.1 billion
Summary of September 2024’s Gambling Landscape
In summary, New Jersey’s internet gambling sector continues to grow, helping Atlantic City set new revenue records. However, physical casinos are facing a mixed recovery trajectory. The enduring success of internet gambling indicates a shifting industry focus, as stakeholders strive to balance the resurgence of in-person gaming with the booming online market.
