It’s no secret that New Jersey’s casinos and racetracks are some of the most accomplished and lucrative in the country’s gambling market. Based on figures shared by the Division of Gaming Enforcement casinos in Atlantic City managed to earn more than $211.6 million from in-person punters in January 2023.
The $211.6 million generated by in-person punters was more than what was generated in January 2019, right before the outbreak changed life as we knew it. January is generally one of the worst-performing months for casinos. As such, the exemplary performance that retail casinos in New Jersey have demonstrated thus far is nothing short of impressive.
Revenue from brick-and-mortar casinos is considered the core business for most of the casinos in Atlantic City and has been a major economic indicator of the city’s success for decades now. For the first time, retail casino revenue surpassed 2020’s performance of $192.1 million, just before the pandemic started to spread in earnest.
January’s $211.6 million approached monthly revenues that had not been recorded since 2012 when the state’s casinos produced $245.9 million and 2011 when they raked in $255.4 million. Keep in mind that between 2011-2012 several of the now-shut casinos were still in operation.
It is also worth noting that mobile sports betting or online casino gaming was still not available between 2011 and 2012. As far as in-person gambling revenue is concerned, Borgata has remained the market leader for a while now. This January, Borgata excelled yet again when it generated $58.3 million, which was an increase of more than 20% compared to the same period last year.
Hard Rock, on the other hand, trailed with $35.9 million, an increase of more than 3% compared to January 2022. Oceans Casino produced $30.5 million while Harrah’s managed $20.1 million. Caesars, alternatively, produced $16.8 million while Tropicana hauled in $16.2 million.
Bally’s and Resorts each produced revenue that was slightly higher than $11 million while Golden Nugget rounded things off with $10.9 million. Combined, only 3 of Atlantic City’s 9 casinos generated more from punters visiting brick-and-mortar establishments in January than they did 4 years ago. These casinos include Ocean, Hard Rock, and market leader Borgata.
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Internet gambling revenue soars
The state’s casinos, horse tracks, and their partners generated more than $150 million in January based on figures released by the state gaming enforcement. In total, online casinos in Garden State generated $152.9 million in revenue, surpassing December’s record of $151 million.
As a result, the revenue in January grew by more than 10% after January’s 2022’s $137.8 million allowed New Jersey to earn annual revenue worth a whopping $1.66 billion. As with brick-and-mortar casino revenue, Borgata Hotel Casino maintained the number 1 position thanks to its Borgata online and BetMGM brands.
Combined, the brands from Borgata generated revenue worth $40.8 million, which was an increase of close to 5%. But Borgata’s position was under threat this January as 2 other competitors, namely Golden Nugget and Resorts Digital, came within $600,000 of grabbing the top spot.
Golden Nugget and its brands Golden Nugget Online Casino, BetRivers, and FanDuel generated revenue of $40.6 million. This was an increase of more than 11% compared to the same period last year. Resorts Digital and partners, namely Resorts Online Casino, DraftKings, and Barstool occupied position 3 on the revenue table with $40.2 million. This represented an increase of more than 20%.
Combined, Resorts Digital, Borgata, and Golden Nugget represented 80% of the combined online casino gaming revenue in January 2023. While these top 3 operators exceeded revenue of $40 million, the remaining casinos struggled to top the $10 million mark. Caesars Atlantic City came closest to reaching $10 million when it generated $8.3 million.
January’s performance was a drop of more than 17% compared to the same period last year when Caesars Atlantic City earned $10 million. Tropicana also struggled in January, especially after Virgin Casino opted to migrate off the brand’s platforms. As a result, Tropicana’s revenue plunged by more than 18% thus allowing the casino to earn $7.8 million in revenue.
Bally’s performance was harder hit with revenue worth $5.1 million. Surprisingly, the $5.1 million generated by Bally’s was an improvement of more than 327% compared to January 2021’s revenue of $1.2 million. Hard Rock, on the other hand, performed slightly better with a revenue of $6 million.
Oceans Casino, like Bally’s, also enjoyed a boost in its revenue this January. Despite appearing last on the revenue table, Ocean Casino’s performance actually improved by 106.5% compared to last year. Oceans recorded a revenue of $3.9 million.
For the last 2 years, iGaming revenue has been on the up and up in the Garden State and this trend is expected to continue thanks to the strong start in 2023. For the past few months, casinos in New Jersey have been generating revenue of $150 million plus with a chance of surpassing the remarkable $170 million mark before the year is up.
Neighboring competitors Pennsylvania and Michigan have helped to keep Garden State on its toes. Case in point, based on the numbers released by the Pennsylvania Gaming Control Board, online casinos in New Jersey managed to generate revenue of $464,488,191 in January 2023.
Commercial and tribal partners in Michigan, on the other hand, recorded iGaming revenue of $187.3 million, which was yet another record month for the state. Based on these numbers, it is evident that most iGaming states still have a long way to go before they can overtake New Jersey’s online casino market.
Final Thoughts
The iGaming market in New Jersey has simply been getting better and better with each year, which has allowed iGaming revenue in the state to gradually improve. Since 2021 online casinos in New Jersey have continually raised the bar and continue to exceed expectations.
What’s even better is that New Jersey has been helping to set a standard for other iGaming states to follow, which should ensure progress in the country’s iGaming market. iGaming markets such as Pennsylvania and Michigan have kept up with New Jersey’s performance, which is a great indicator of where the online casino gaming market is headed.
