New Jersey iGaming Revenue Reaches Unprecedented Heights: A September to Remember
Posted on: October 17, 2024, 03:10h
Last updated on: October 17, 2024, 03:10h
By Casino.org
The online gaming scene in New Jersey has reached a remarkable milestone, with the state’s iGaming revenue soaring to new heights in September 2024. The New Jersey Division of Gaming Enforcement (DGE) reported spectacular winnings of over $208.1 million from online casino slots and interactive table games, marking the first time the state’s online gaming sector has surpassed the $200 million mark in a single month. This growth not only demonstrates the increasing popularity of online gambling but also indicates a significant shift in player habits toward digital platforms.
The Atlantic City skyline is seen from an airplane. Atlantic City seemed like an afterthought for many gamblers in September, as New Jersey iGaming soared to record heights while in-person play down the shore slowed. (Image: X)
Impressive Numbers and Yearly Growth
In September alone, the online slots and tables generated gross gaming revenue (GGR) totaling $205.9 million. Additionally, rake from online poker games contributed another $2.2 million to the overall figure. This influx represents a staggering 27% increase year-over-year, further solidifying New Jersey’s standing as a leader in the iGaming industry.
Although six other states permit online casino gaming, only Michigan has matched this level of success, previously achieving a record of $215.5 million in March 2024. This track record underscores New Jersey’s position as a trailblazer in the online gaming sector.
A Boost for Atlantic City’s Overall Revenue
James Plousis, chair of the New Jersey Casino Control Commission, stated that the ongoing success of internet gaming has bolstered total gaming revenue in Atlantic City to its highest levels in over a decade. In September, sports betting revenue from both mobile and retail operations reached $119.6 million, an 8% increase that brought the total statewide gaming revenue to a robust $558.28 million. This represented a year-over-year gain of approximately $36.8 million.
However, it is essential to note that these gains were predominantly realized in online gaming, while in-person play in Atlantic City experienced a decline.
Changes in Atlantic City: A Mixed Bag
After a fruitful month in August, where retail casinos reported a nearly 5% increase in earnings, September displayed a contrasting trend. The DGE revealed a 6.5% drop in retail casino revenue, amounting to roughly $15.9 million compared to September 2023. Slot machines earned $173.3 million—a decline of 5%—while table games saw a drop of over 10%, generating only $57.3 million. Consequently, the total in-person casino winnings hovered around $230.6 million for the month.
Calendar and Luck Factors
Interestingly, September 2024 featured two fewer weekend days than the same month in 2023. Plousis attributed part of the decline in retail revenue to this calendar anomaly, as well as to above-average luck among table game players.
Despite the drop in in-person gaming, Plousis remained optimistic, remarking that while year-to-date casino winnings were slightly down compared to last year, September still marked the second-best performance for the month seen in over a decade. This optimistic outlook suggests that the Atlantic City market remains relatively stable.
Diverging Views on Revenue Insights
While Plousis projects a rosy picture regarding the state’s gaming landscape, casino operators in Atlantic City contend that such optimism does not accurately reflect the challenges faced by physical casinos. Much of the iGaming and online sports betting revenue is attributed to third-party platforms like DraftKings and FanDuel, which contribute little to the physical infrastructure of Atlantic City. As a result, casino leaders emphasize that retail numbers offer a better perspective on the health of the resort market.
Year-to-Date Performance
Through the first three quarters of 2024, in-person casino earnings dwindled by almost 1%, totaling around $2.15 billion. Notably, five out of nine casinos reported decreased revenues compared to the previous year. However, not all establishments are facing the same struggles.
While properties like Bally’s, Caesars, Harrah’s, Resorts, and Tropicana have seen losses, Borgata and Ocean have recorded slight increases of less than 1%. The Golden Nugget also performed well, with a 2.6% rise in in-person gaming revenue. Notably, Hard Rock is gaining market share, boasting an impressive 8.3% year-over-year GGR improvement through September.
Conclusion: A Bright Yet Complex Future
The new highs in New Jersey’s iGaming revenue illustrate a clear trend toward online gambling. However, the declining retail revenue in Atlantic City serves as a reminder that the casino landscape is undergoing significant transformation. The success of online platforms coupled with the challenges faced by brick-and-mortar establishments indicates that while the future of gaming in New Jersey may be bright, it is also complex and multifaceted.
As online gaming continues to grow, stakeholders must closely monitor these developments to understand the evolving landscape of the gaming industry and ensure sustainable growth for both online and in-person venues.
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