New Jersey's online gambling market hit a new high in October.
The New Jersey Division of Gaming Enforcement reported that casinos and their online partners earned almost $214 million, beating the previous record of $208 million set in September.
When you include figures from in-person casino, internet, and sports betting revenues, the nine casinos, two horse tracks, and their online partners collectively made just under $500 million, a 2.6% increase from last year.
Shift To Online Casinos Continues in New Jersey
New Jersey was one of the first US states to legalize and regulate online casinos. The Garden State launched its online gambling market in 2013.
They must have known something because the general public has been shifting to online casinos ever since this launch. This change shows a clear trend in the gaming industry: online platforms are becoming more popular, while traditional casinos are seeing their revenues drop.
Online gaming revenue increased just over 28% last month, compared to last year, whereas land-based casino revenue fell by 8.5%.
These figures reveal different paths within New Jersey’s gaming scene. People are increasingly choosing online gambling, excluding sports betting, due to its convenience and accessibility. Meanwhile, traditional casinos are having difficulty recovering to their pre-pandemic levels despite their appeal and entertainment offerings.
Which Casinos Fare Best in The Garden State?
Atlantic City is the top casino destination in New Jersey. However, only three casinos—Borgata, Hard Rock, and Ocean—earned more from in-person gamblers last month than in October 2019, before the COVID-19 pandemic. This indicates that two-thirds of the casinos are still struggling.
Undoubtedly, more people prefer to gamble online instead of visiting Atlantic City. Since internet and sports betting revenue must be shared with external parties like sports books and tech platforms, casinos view the money won from in-person visitors as their primary source of income.
The shift from in-person gambling to online gambling increased during the pandemic and is now becoming a lasting trend in New Jersey's gambling industry.
Can Online Casinos And Traditional Casinos Co-Exist?
Land-based casinos are crucial to New Jersey's economy, even as iGaming proliferates. They provide unique experiences that online platforms can't match. However, their success in the future will depend on how well they adapt to the digital age.
Despite these challenges, the government keeps supporting Atlantic City to help diversify its economy. They are working on projects to develop attractions that aren't related to gaming and to improve infrastructure.
Online casino sites must be used to rejuvenate New Jersey's traditional casino market. Through strategic partnerships, such as those between BetMGM Casino and land-based casinos, these collaborations can be designed to reduce the city's reliance on the volatile casino industry.
However, it appears that it will take all three facets of the business (casino, online, and sports betting) to ensure success. Here’s the breakdown of top-performing casinos in New Jersey in October, with internet and sports betting included. Figures are rounded to the nearest million:
- Borgata: $106 million, up 5.8%
- Resorts: $89 million, up nearly 19%
- Golden Nugget: $77 million, up nearly 25%
- Hard Rock: $55 million, up 6.2%
- Ocean: $39 million, down nearly 19%
- Bally’s: $23 million, up 17.2%
- Tropicana: $18 million, up 9.1%
- Harrah’s: $16 million, down 10.6%
- Caesars: $15 million, up 1.5%
So, there is hope.
In the next few years, staying ahead of technological advancements and evolving consumer preferences will require much improvising and adjusting. The ongoing growth of online gaming will also play a significant role in this transformation, and strategic decisions by companies in the industry will drive future changes in New Jersey's gambling scene.
