New Jersey’s Online Casino Market Still Growing Amid Competition
By Space Coast Daily // January 31, 2023
For several years, the online gambling market in New Jersey has been recording consistent growth.
As of the end of September 2022, the sector had generated a total gambling revenue of $3.87 billion since January. In September alone, the sector generated $251.7 million in revenue, representing 1% from year to year.
Due to the robust online gambling market, the state’s Assembly committee considered extending the internet gambling authorization law to 2033. The sector’s growth remains hot and is not showing signs of slowing even with stiff competition from the state’s neighbors.
New Jersey’s online gambling market recording double-digit growth
Even as the year approaches the end, NJ online casinos are still on track to achieving double-digit growth. A report by PlayUSA suggests the online casino market in NJ is nearly to hit the ceiling considering the revenue trends recorded recently.
Although signs are clear that the sector will achieve double-digit growth, it has achieved slight negative growth in the past few months.
The report further suggests the pullback was due to the recent expansion of the New York online casino market. Despite the competition, the report suggests that the NJ internet casino market is fast approaching maturity.
Illinois market giving NJ unrelenting competition
The US gambling market is expanding fast as more states sign legalization laws. However, the new entrants are affecting performance in New Jersey. Due to this, NJ might slip backward in 2023, although it might still record moderate growth.
The report by PlayUSA specifically notes NJ is receiving unprecedented competition from Illinois, which is affecting its revenue significantly. If completion between the two states continues at the same pace, both markets might attain equilibrium by the close of 2023.
By the end of 2023, both states could be generating approximately $11 billion to $12 billion.
Illinois has a population advantage
In terms of population, Illinois is more populous than New Jersey. This places online gambling operations in Illinois at an advantage due to numbers. Based on this fact, its online gambling market might be ahead of NJ soon.
New Jersey is among the US states that offer internet gambling, along with other states such as Michigan and Connecticut. The state also has a vibrant land-based casino market which registered over $445 million in revenue in October 2022. Compared to the period the previous year, this was a 1% pullback based on the figures released by New Jersey’s Division of Gaming Enforcement recently.
The New Jersey online gambling market grew by 16% in October
The online gambling market in October 2022 generated $147 million, which was an increase of 16% when compared to the same period in 2021.
A report by PlayUSA reveals there are more than 24 states in the US that allow regulated sports betting or internet casino games.
This includes the US capitol Washington, D.C. The rapid expansion being recorded currently across many states is happening after the state governments realized the revenue potential of the online gambling market.
It can and is reliably generating tax in the states where internet gambling has been legalized.
The states that refused to legalize online gambling soon regretted the decision when they saw the benefits that states with regulated gambling are reaping.
Due to this, most of them have recently agreed to legalize gambling in order to enjoy the benefits as well.