New Jersey’s Online Gambling Market Hits Record Highs in September 2024
In an unprecedented surge, New Jersey’s internet gambling market has reached new heights, marking a watershed moment in the state’s gaming industry. In September 2024, Atlantic City’s casinos and their partners collectively reported earnings exceeding $208 million from online gambling. This achievement is particularly noteworthy as it is the first time that monthly internet gambling revenues have crossed the $200 million threshold, underscoring the vital role that online gambling now plays in New Jersey’s overall gaming landscape, as highlighted by the New Jersey Division of Gaming Enforcement (NJDGE).
A Shift in Revenue Sources
While traditional in-person casino gambling remains a foundational pillar for many establishments, the burgeoning online segment is proving crucial for maintaining the profitability of the industry. This transition is especially significant as numerous casinos continue to grapple with in-person earnings that have not yet rebounded to pre-pandemic levels witnessed in 2019. Despite these challenges, combined in-person revenue for September 2024 slightly surpassed the figures from September 2019, exceeding them by $6 million, although not all casinos experienced the same growth.
According to the NJDGE’s latest report, the overall financial health of New Jersey’s gambling sector appears robust, largely bolstered by the synergistic effects of internet gambling and sports betting. Together, these elements propelled total industry revenue for casinos, their online partners, and two racetracks that accommodate sports bets to $558 million last month, representing a 7.1% increase from the same period in 2023.
Strong Statements from Industry Leaders
James Plousis, chairman of the New Jersey Casino Control Commission, emphasized the weight of these statistics, stating, “The ongoing success of internet gaming helped push Atlantic City’s total gaming revenue to its highest figure for the month of September in over a decade. For the third consecutive month, total gaming revenue surpassed $500 million. Last year, total gaming revenue eclipsed $500 million only in August.” This statement highlights the growing dominance and importance of the online gaming sector as a key revenue generator.
Mixed Results Across Casinos
Despite the remarkable overall performance, results among individual casinos in Atlantic City present a more nuanced picture. The Borgata led the pack with $62.4 million in in-person winnings, an impressive increase of 15%. Meanwhile, other establishments, such as Ocean and Harrah’s, experienced significant declines in in-person revenue—28% and 16.3%, respectively. When considering internet and sports betting revenues together, Borgata’s total earnings rose to $120.2 million, reflecting a 12% increase. In contrast, casinos like Ocean and the Golden Nugget showed mixed results, illustrating the varying impacts of online gaming on traditional casino performance.
Industry analyst Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, provided valuable insights into these dynamics. She remarked, “September’s numbers were a mixed bag, with soaring internet revenues that seemed to leave brick-and-mortar gaming revenues behind. Year-to-date internet gaming continues to represent a significant share of Atlantic City operators’ revenue mix, contributing 40.8% of the total revenue for the industry through the first three quarters of the year.”
Conclusion
The surge in New Jersey’s online gambling market is a reflective illustration of the broader shifts occurring within the gaming industry. As traditional in-person gambling establishments attempt to reclaim their footing, the triumphs of internet gambling signal a transformative era for both operators and patrons. The adaptability and innovation within this sector will likely play a pivotal role in shaping the future of gambling in the Garden State and beyond. As the year progresses, stakeholders will be keenly observing these trends and their implications for the long-term viability and evolution of both internet and traditional gambling in New Jersey.
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