NJ online casino market inches closer to 10-year milestone
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Since full internet gaming operations commenced on November 25, 2013, online casino spend in New Jersey continues to rise, so much so that it has now surpassed land-based revenue, with lifetime revenue, April’s numbers included, surpassing the $6.1 billion mark, and $1 billion-plus in taxes. With no slowdown in sight, the market is poised to achieve a 10-year milestone later in the year.
NJ Online Casinos
According to gaming revenue results recently released by the state’s Division of Gaming Enforcement (DGE), these online casinos in New Jersey, Ocean Casino, Hard Rock, Tropicana, Bally’s, Caesars Interactive NJ, Golden Nugget, Resorts Digital and Borgata, generating $158.936 million in April. Borgata’s $43.18 million, Resorts Digital’s $41.69 and Golden Nugget’s $41.65 million were significantly more than the next highest internet gaming win reported, Caesars Interactive NJ, with $8.72 million.
While the reported total (pdf) for April was nearly $7 million shy of the prior month’s record at $165.7 million, the total still managed to earn second place honors for the most in the Garden State’s history. Moreover, when you compare the reported online gambling revenue from April 2023, to that reported for the same period the year prior, the increase is a whopping 16.1 percent.
According to the DGE, year-to-date, $620.1 million has been generated by online casino, which is a year-over-year (YOY) increase of 13.7 percent compared to $545.4 million for the same period of time in 2022.
COVID Boost
Considering the current online casino market in New Jersey, one can reasonably attribute the favorable numbers to the COVID-19 pandemic, which saw Democratic Governor Phil Murphy order all nine of Atlantic City’s casinos to close on March 16, 2020. According to the American Gaming Association (AGA) (pdf), at the time, the closures were costing the state $540 million in “casino-related revenues” every month.
In February 2020, prior to the Boardwalk City’s brick and mortar casino closures, internet gaming generated $52 million, by April that year it was $79.9 million and just one month later it was $86 million. Not only has monthly revenue from digital gaming never fallen below $80 million since that time (with the exception of Feb. 2021), in January 2021, the market segment eclipsed the $100-million mark. Furthermore, only February delivered under the $150 million mark, reporting $142.6 million for the 28-day month.
State of the States 2023
New Jersey isn’t the only state where internet gaming revenues skyrocketed after lockdown orders were given in 2020. According to the AGA State of the States Report released in May, despite any lingering effects of COVID-19 in the U.S., along with traditional gaming, iGaming is thriving, with the latter grossing $1.48 billion in Q1 2023. That’s a 22.7 percent YoY revenue increase.
