The latest figures from the New Jersey Division of Gaming Enforcement reveal a 2.6% year-on-year gaming revenue increase for October. The overall revenue figure was $499.8 million compared to $487.1 million for the same period in 2023.
October’s gaming revenue figure was down from September’s figure of $558.3 million. However, iGaming revenue rose by 2.8% from $208.1 million in September to $213.6 million in October.
This represents a year-on-year increase of 28.5% and means that iGaming is the standout segment of the gaming industry when compared with brick-and-mortar casinos and sports betting. This is the first time this has happened since 2020, when land-based casinos were closed due to the pandemic.
Within the iGaming sector, revenue from online slots and table games increased by 28.5% from the same time last year to $211.3 million. Meanwhile, peer-to-peer poker revenue decreased by 1.0% to $2.3 million.
In contrast to the positive performance of iGaming, revenue from land-based casinos decreased by 8.5% to $208.7 million. There is a similar situation for revenue from sports betting, which underwent a 16% decrease to $77.5 million year-on-year. However, sports betting remains a growth area overall, with a 13.9% increase in gross revenue year-to-date.
The New Jersey Division of Gaming Enforcement’s figures reflect an ongoing trend for increased popularity in online casinos instead of land-based sites. Further evidence of this trend can be seen from the fact that monthly online gaming revenue was $84.9 million in June 2020 and has more than doubled since then, despite the reopening of brick-and-mortar casinos when pandemic restrictions ended.
There are many reasons for the growth of iGaming, including the convenience of the sites that give players access to thousands of games from any location with Internet access. Online casinos are also fully licensed and regulated in New Jersey, and players must prove they are physically located in the state.
Taxation figures for the New Jersey gaming industry reflect the revenue position for different sectors. Industry licensees paid more than $55 million in taxes in October 2024.
Online casino operators were the biggest contributors, paying $31.9 million at a gross revenue levy rate of 15%. The rate for brick-and-mortar casino operators is lower, 8%, and resulted in total payments of $13 million. Sports betting operators contributed $9.9 million for online betting at a 13% tax rate and $194,771 for retail sportsbook betting at a tax rate of 8.5%.
Despite the upward trend in the popularity of iGaming, brick-and-mortar casinos still have a role to play in the New Jersey gambling landscape. However, they must compete with the appeal of online casinos.
To do this, they must become part of the ongoing improvements in Atlantic City, such as the proposed regeneration of the boardwalk. Being part of the improvements may mean enhancing their premises as a destination experience, including diversifying from solely offering casino gaming. Making these changes is likely the only way to turn these casinos into the hub of activity they were when they thrived before the rise of casinos in Pennsylvania, Connecticut, and New York eroded their market share.
In addition to improving their appeal to in-person visitors, brick-and-mortar casino operators must adjust to compete in the digital space. Some of Atlantic City’s major operators are already doing this by adopting an omnichannel approach that allows them to cater to traditional and modern gamblers.
As the upward trend in the popularity of iGaming continues, more land-based operators may further integrate with online platforms to allow them to capture their slice of the market and remain competitive in a world where more people than ever are choosing to enjoy casino gaming online rather than visit brick-and-mortar premises, due to the enhanced convenience and accessibility that iGaming provides.
