For decades, New Jersey has maintained its status as a national leader in the gambling industry, with Atlantic City serving as the epicenter of this thriving sector. However, as the latest figures from the American Gaming Association (AGA) show, the gambling landscape in the US has seen significant change in recent years, driven primarily by the increased adoption of online sports betting and iGaming options.
Nowhere is this shift more pronounced than in the Garden State itself, where the rise of online casinos and internet sports betting has reshaped everything from revenue, policy changes, and economic impact. According to the AGA’s data, these digital betting platforms now account for around 49.9% of New Jersey’s total gaming revenue, thanks to their convenience, variety, and accessibility.
The report shows that while Atlantic City’s nine brick-and-mortar casinos remain the cornerstones of the state’s gambling industry, the future lies in the seamless integration of digital technologies and innovative platforms.
New Jersey’s commercial casinos and racetracks, along with their online gambling partners, reported a stellar performance in 2023. The combined gaming revenue from these operators reached a record $5.77 billion, an impressive 11% increase over the $5.21 billion reported in 2022, according to AP News.
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Surge in iGaming Revenue in New Jersey
The AGA’s gaming revenue tracker for commercial casinos pinpoints iGaming as a major driver of growth within the New Jersey gambling industry. In 2023, online casinos and sports betting platforms generated a combined revenue of nearly $3 billion, surpassing the previous year’s record by more than 15%.
More specifically, the report highlights the increased popularity of online casinos, which have become a driving force in New Jersey’s gambling industry. In 2022, internet gaming win (IGW) – the revenue generated by online casinos – surged to an unprecedented $1.92 billion, representing a nearly 23% year-over-year growth.
Meanwhile, operators of sports betting raked in more than $1 billion in revenue on almost $12 billion worth of wagers plunked down by both online and offline gamblers. These figures account for payment to winning players and other expenses.
Of this revenue, online sports betting accounted for $962.4 million, a record for New Jersey in 2023. Together, online sports betting and casino games made up a little shy of half of combined revenue generated by gambling operators in the Garden State.
This surge in online casino and internet sports betting revenue reflects a growing preference for convenient and accessible online gambling options. Unfortunately for land-based gaming properties in Atlantic City, revenue generated from online gambling and sports betting is distributed among various stakeholders, including technology platforms and sportsbooks like PlayUp, which is still paying customers.
Record-Breaking Year for All Sectors
The positive trend wasn’t limited to iGaming. The report reveals that all sectors of New Jersey’s gambling industry achieved record highs in 2023 and the first two months of 2024.
New Jersey’s gambling industry saw record-breaking numbers in 2023, with the state’s commercial gaming entities accounting for roughly 8.7% of the US total. The New Jersey Division of Gaming Enforcement reported over $5.77 billion in total gaming revenue, the highest single-year total since the state legalized casinos in 1978.
Sports betting across the state hit a record high in 2023, with nearly $12 billion wagered at New Jersey sportsbooks. The state ranks second in sports betting revenue and handle, trailing only New York.
Atlantic City casinos generated over $2.84 billion in land-based revenue, with retail sportsbooks at casinos and racetracks adding $44.1 million. Three Atlantic City properties made the list of top 20 highest-grossing commercial casinos outside Nevada, including Borgata (4th), Hard Rock (12th), and Ocean Casino (14th).
Despite these record numbers, only three of the nine Atlantic City casinos have bounced back to their pre-pandemic levels of in-person gaming revenue. That’s Ocean Casino, Hard Rock, and Borgata Atlantic City.
Borgata once again was the dominant earner, making close to $730 million from in-person bettors, just under 1% higher than the levels in 2019 before Covid-19 pandemic broke out. Meanwhile, Ocean Casino won almost $415 million from in-person gambling traffic, and Hard Rock won $512, a 4.1% uptick from 2019.
The casinos have also witnessed record monthly performances in both online gambling and sports betting in 2024. Online casino revenue soared to $183 million in the first month of 2024, while sports betting wagers reached $1.71 billion. In February, online casinos brought in $182, with sports betting handle exceeding $1 billion.
Gambling Gaining Traction Nationwide
The gambling industry in the US continues to experience remarkable growth, as evidenced by the AGA recent data.
According to the AGA’s commercial gaming revenue tracker, the US gambling industry generated a staggering $66.52 billion in 2023, marking a 10% increase over the previous record set in 2022. This represents the third consecutive year that revenue from commercial gambling has surpassed previous records.
While iGaming is currently only available in six states, the segment’s $6.17 billion in annual revenue accounts for more than 9% of the national total. Each legal online casino market has set new annual revenue records, with year-over-year earnings increasing between 3.3% in Delaware and 44.7% in Connecticut’s second full year.
Sports gambling, now legal in 38 states and Washington DC, generated just under $11 billion in revenue in 2023, marking a nearly 45% year-over-year increase. Americans legally wagered more than $119.84 billion on sports last year, almost 28% more than the previous year, further emphasizing the growing prominence of the gambling industry in the US.
Wrapping Up
Industry experts anticipate the positive trajectory to continue in the coming years. The convenience and accessibility of online gambling platforms are expected to be major contributors to this sustained growth. Furthermore, strategic investments in technology and marketing are likely to propel the industry forward.
The AGA report offers valuable insights into the evolving landscape of New Jersey’s gambling industry. The surge in iGaming revenue, coupled with record-breaking performances across all sectors, underscores the industry’s dynamism and its ability to adapt to consumer preferences.
