There is no doubt about it! New Jersey is easily one of the biggest iGaming markets in the country and it is easy to see why. Not only do punters in New Jersey have an endless array of operators to choose from as far as sports betting is concerned, but the Garden State is also one of the only states in the country to allow iGaming.
Indeed, New Jersey has played a vital role in transforming the gambling landscape in the country. It was the first state to legalize sports betting when PASPA was overturned and was also among the first after Nevada to allow online casino gaming. It has since been 10 years since the Garden State legalize iGaming thus allowing its residents to place wagers on online poker, slots, baccarat, roulette, and other online casino games.
The iGaming market in New Jersey is not only one of the most vibrant but also easily one of the most lucrative. According to the New Jersey Division of Gaming Enforcement, online casinos in New Jersey produced close to $1.4 billion in revenue in 2022. Although there is no denying online gaming’s place in New Jersey’s successful gaming ecosystem, lawmakers in the state are faced with an important decision.
The law that legalized iGaming in the state is expected to expire in November 2023 as the measure that authorized it was only sanctioned for 10 years. This means that lawmakers must consider extending the law for an additional 10 years or not. The supporters of extending the iGaming law claim that online casino games have been the safety net that the industry has needed to recover from the overwhelming effects of the pandemic.
iGaming has been an asset that has helped the New Jersey gambling market continues to flourish and stand out even as more and more state continue to legalize sports betting. Lawmakers also note that iGaming has supplied the state with much-needed tax funds for various community projects and programs which could disappear without the funds contributed by online casinos.
The iGaming market is expanding rapidly not just in the country but the rest of the world. Case in point, Ontario legalized its iGaming market in 2021 after trying since 2003 to legalize its market. It is evident that online casino gaming is the future and New Jersey has been at the forefront since the beginning.
Fortunately, the measure to extend iGaming in the state, Bill A2190, has been a massive success and has received widespread support. Last year, the Assembly’s Tourism and Gaming committee voted to unanimously extend the iGaming law until 2033. The bill must pass both the Senate, as well as the Assembly before the Governor signs it into law.
What we cover
Horse racing purses rose considerably in 2022
Combined betting on horse races last year dropped slightly by less than 1% compared to 2021 based on data gathered by Equibase. The drop in total betting has been largely attributed to the complex environment in the US economy, which has been characterized by inflation and the high cost of living.
According to the Bureau of Labor Statistics, the inflation index has been the highest it has ever been since June 1982. The tough economic environment in the country has eaten into punters’ disposable income thus leading to the lower revenue. Plus, the horse racing industry has become more competitive over the last couple of years owing to the rapid growth of sports betting.
Although horse racing is now available in one form or another in more than 30 states, the horse racing industry doesn’t appear to be benefiting greatly from the expansion, despite efforts by operators to align the 2 verticals. In total, the combined gambling on racing events and races dropped by 7.5%.
For 2022, the total gambling accumulated to $12.11 billion, which was a decrease from the $12.21 billion generated in 2021. The number of races and events organized at tracks within the country was also lower by 0.3%. The average gambling per event or race in 2022 was $361,965, which was a slight decline from the $363,939 average in 2021.
Despite the decline in racing revenue, the good news is that purses in the country saw an increase of 10.9% in 2022. According to Equibase, US purses reached $1.31 billion which consequently led to a record in the typical purse per race at an impressive $39,155. In general, the purses in the country are subsidized by the casinos.
As such, the impressive average purse per race of $39,155 can be attributed to the massive profits in gambling figures posted by casino properties in Kentucky. Kentucky is the only state in the country that allows regular businesses to operate casinos. A small percentage of the proceeds generated by these businesses is usually directed straight into purses.
Horse racing was one of the only sports that thrived not just survived during the long and brutal pandemic. That’s in part because many other sports had been postponed or canceled as a result of the outbreak. This momentum eased slightly last year as pre-pandemic conditions gradually returned. If the horse racing industry wants to keep growing, it must do everything possible to keep punters engaged.
The good news is that the results in January 2023 have already improved. Equibase recently shared the figures for January 2023, which showed that both the number of races and purses had increased significantly. In January, the total purses for the first month of 2023 amounted to $90,069,945.
Final Thoughts
New Jersey has remained the leader and has set the standards in the quickly evolving gambling landscape in the country. If New Jersey wants to remain the market leader as far as iGaming is concerned, it is going to do whatever it takes to ensure the industry is nurtured and fully supported.
The operation of online casinos in the state has generated the wellspring of capital that the New Jersey gambling market has needed to not only remain competitive but to also survive tough economic times.
