New Jersey Gambling Market Hits $4.74 Billion for ‘21, Predictions For ‘22
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In the United States, the state of New Jersey reportedly brought in $4.74 billion in total gambling revenue for 2021, and economists expect even bigger numbers through Q1 of this year, as sports betting hits new highs.
According to NJ’s Office of the Attorney General, “Total Gaming Revenue reported by casinos, racetracks, and their partners for December was $404.1 million compared to $312.9 million in December 2020, reflecting a 29.1% increase… For the year-to-date period, the Industry’s Total Gaming Revenue reported by casinos, racetracks, and their partners was $4.74 billion compared to $2.88 billion, reflecting an increase of 64.4%. Internet Gaming Win as reported by casinos and their partners increased 40.9% to $1.37 billion when compared to the prior period.”
For December 2021, Internet gaming alone jumped by 33.9% compared to December of the previous year.
The state of New Jersey in the United States was a trendsetter – they legalized online gambling and sports betting in 2018, and have since been able to use the revenue to help its ailing economy. Many states have legalized sports betting and online gambling in the last three years, catching up with many European, Asian, and African countries, like Nigeria.
With the pandemic shuttering brick-and-mortar casinos around the world, online gaming rose to an all-time high in most places. New Jersey has consistently beaten its own records of years passed with extensive discrepancies as individuals continue to place bets from their mobile phones and computers while home from work.
During the past several years, New Jersey has been posting record revenue numbers. Economists did theorize that numbers would drop this winter as less individuals found themselves at home. But with the Omicron variant keeping people at home, physical casinos stayed slow, and some shuttered again, driving gamers to continue playing online.
According to New Jersey’s Division of Game Enforcement, the pandemic that hit in 2020 halved the revenue from brick-and-mortar casinos. Nearly all of those gamblers just went online, as online gaming doubled. With many continuing to stay out of the office due to Covid-19, as well as a new outlook on gambling in the state, online casinos continue to do better, prompting Atlantic City officials to file a lawsuit asking for a tax break.
Like in many places, online and physical casino operators were taxed at the same rate in New Jersey. Since the pandemic severely cut business for the first time since the 2016 financial crisis, officials representing Atlantic City casino brands claimed they may have to start permanently closing casinos. The last time that happened was in 2015-2016, when four casinos shut their doors, decimating New Jersey’s economy. Thanks to the new lawsuit, online casinos will have to pay more, unless brick-and-mortar casinos experience an unexpected surge in profits.
The amount of online casino sites in New Jersey is rising, which is good news for their Internal Revenue Service. Each licensee pays an application fee, licensing fee, and renewal fees every year. Physical casinos pay based on their size and scale, and these licensing fees are one of the backbones of NJ’s economy.
In Atlantic City, job loss is still higher than pre-Covid rates. As states in the US with larger economies deal with less tourism, constant openings and closings, and a holiday season that isn’t living up to economic predictions, we can expect more laws and regulations lifted when it comes to online gambling.
