New Jersey’s Online Gambling Sets New Revenue Record in August
By Space Coast Daily // September 20, 2024
New Jersey’s online gambling sector reached a new milestone in August 2024, generating $198.4 million in revenue.
This shattered the previous record of $197.2 million set in March and marks the fourth time this year the state’s iGaming industry has exceeded $190 million in monthly revenue. Despite this digital success, in-person gambling revenue from Atlantic City casinos declined by 2% in the same month, illustrating the growing shift toward online platforms.
A Surge in Digital Gaming
The online gaming sector in New Jersey has seen tremendous growth over the past several years, with the state becoming one of the largest iGaming markets in the U.S. In August, the industry broke the revenue record and posted a significant year-over-year increase of 27.8%. This growth comes from strong summer months, with July and June contributing robust figures. The market is anticipated to soon cross the $200 million threshold, especially as the NFL season ramps up.
The online market has been led by some of the biggest names in the gambling world. DraftKings posted the highest earnings in August with $43.2 million, narrowly edging FanDuel’s $41.3 million. Other prominent players like BetMGM and Caesars also made significant contributions, helping push New Jersey’s iGaming industry to new heights.
Online Gambling vs. In-Person Casinos
While the online sector is thriving, the state’s brick-and-mortar casinos have not fared as well. Atlantic City’s in-person gambling revenue dropped 2% to $280 million in August 2024. This decline is part of a broader trend in which the traditional casino model struggles to recover to pre-pandemic levels. The COVID-19 pandemic accelerated the shift toward online gambling, and many consumers have continued to prefer the convenience of iGaming even as physical casinos have reopened.
The disparity between online and in-person gambling is stark. With players able to access digital casinos from the comfort of their homes, it has become increasingly difficult for Atlantic City’s famed casinos to compete. The physical casino experience still appeals to some, especially for tourists and events, but its revenue contribution is waning. For instance, while iGaming platforms continue to set records, land-based casinos have struggled to return to their pre-2020 revenue highs.
The Struggles of Brick-and-Mortar Casinos
Physical casinos in Atlantic City have long been the backbone of New Jersey’s gambling industry, but their revenues have not rebounded to pre-COVID levels. August’s 2% drop in in-person gambling is part of a broader, ongoing decline in the performance of Atlantic City’s physical casinos. Even major resorts like Borgata and Caesars have seen diminishing foot traffic and in-person bets as consumers shift to digital gaming platforms.
This trend worries operators who once thrived on tourism, special events, and live experiences. Atlantic City was previously the go-to gambling destination in the region. Still, today, it faces growing competition not just from digital platforms but from nearby states like Pennsylvania and New York, which have legalized online gambling or expanded their gaming industries.
The contrast in performance between online and in-person gambling presents a strategic challenge. Traditional casinos, often tied to large operational costs like staffing and real estate, face higher risks of losses when revenue dips. On the other hand, online platforms operate with fewer overheads, providing more flexibility to adapt to changing consumer preferences.
Breaking Down the Numbers
In August, New Jersey’s Division of Gaming Enforcement reported a record-breaking $198.4 million in revenue for online gambling. This represents a 1.5% increase from the $195.4 million recorded in July. The state’s online gambling sector has consistently grown throughout 2024, posting strong monthly figures. Here’s a breakdown of the monthly online revenue so far this year:
- January: $183.3 million
- February: $182.3 million
- March: $197.2 million
- April: $187.9 million
- May: $192.1 million
- June: $186.8 million
- July: $195.4 million
- August: $198.4 million
The increase in revenue can be attributed to multiple factors, including the expansion of online casino offerings, increased consumer familiarity with digital platforms, strong marketing efforts of major operators, and major competition in the online gambling market, especially given that one of them is FanDuel Casino, which is one of the leading entities in online gambling in the U.S.
The Future of New Jersey’s Gambling Market
As the online gambling market thrives, experts believe it’s only a matter of time before New Jersey crosses the $200 million monthly revenue threshold. The state’s success in iGaming can be attributed to its early adoption of online gambling regulations, robust enforcement, and operators’ ability to innovate and expand their offerings.
Football season is expected to further boost online gaming activity, particularly in the sportsbook sector. As one of the leading states in both online casino and sports betting revenue, New Jersey is likely to continue its upward trajectory, especially as other states look to follow its model.
However, the future of Atlantic City’s land-based casinos remains uncertain. With in-person gambling revenue lagging, the industry may need to rethink its strategy. Some experts suggest integrating more digital offerings into the physical casino experience could help bridge the gap. In contrast, others believe the traditional casino model may need significant changes to stay competitive in the evolving market.
Final Words
New Jersey’s record-breaking online gambling revenue in August 2024 signals the growing dominance of the digital sector in the state’s overall gambling landscape. With nearly $200 million in monthly revenue and consistent year-over-year growth, the state’s iGaming market has become a benchmark for the rest of the country. However, as online platforms flourish, the state’s physical casinos face new challenges, prompting questions about the future of the industry in Atlantic City.
As the state adapts to these shifts, the next few months will be critical in determining whether New Jersey can maintain its leadership position in the U.S. gambling market while revitalizing its once-thriving land-based casino industry.
