New Jersey’s gambling industry had a stellar start to 2024, breaking four major revenue records in January. However, the in-person casino winnings continued to decline, reflecting the impact of the COVID-19 pandemic and the shift to online platforms.
Online gambling and sports betting lead the way
According to the state Division of Gaming Enforcement, the total amount won by Atlantic City’s nine casinos, the three horse tracks that take sports bets, and their online partners was more than $559 million in January, up 28% from a year earlier.
Much of that was powered by a historic month of internet gambling ($183 million, up nearly 20% from a year ago) and sports betting (nearly $171 million, up more than 136%). These revenue streams have to be shared with third-party providers, such as tech platforms and sports books, but they still represent a significant source of income for the gambling operators.
The online gambling and sports betting sectors have been booming in New Jersey since they were legalized in 2013 and 2018, respectively. They have also benefited from the increased demand for remote entertainment and wagering options during the pandemic, as well as the expansion of the legal sports betting market across the US.
In January, New Jersey gamblers placed a record $1.03 billion in sports bets, the first time any state has surpassed the $1 billion mark in a single month. The majority of those bets were made online, with mobile apps accounting for 92.5% of the total handle. The most popular sports to bet on were football, basketball, and hockey.
In-person casino winnings fall for the third straight month
While online gambling and sports betting soared in January, the in-person casino winnings suffered a 3.1% drop from a year earlier, totaling just over $205 million. This was the third consecutive month of decline for the brick-and-mortar casinos, which have been struggling to recover from the pandemic-induced closures and restrictions.
The in-person casino winnings in January were lower than the pre-pandemic levels of January 2019, when they reached $223.6 million. Only three of the nine casinos in Atlantic City – the Borgata, Hard Rock, and Ocean – won more from in-person gamblers in January than they did four years earlier. The rest of the casinos saw their revenues shrink, with Bally’s, Caesars, and Resorts suffering the biggest losses.
The harsher winter weather in January 2024 may have also contributed to the lower in-person casino winnings, as some gamblers may have preferred to stay home and play online. Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, which studies the Atlantic City casino market, said that “it’s likely brick-and-mortar activity was diverted to online channels, boosting the internet gaming and online sports betting totals.
The outlook for New Jersey gambling in 2024
Despite the challenges faced by the in-person casinos, the overall outlook for New Jersey gambling in 2024 is positive, as the online gambling and sports betting segments continue to grow and attract new customers. The state is also expected to benefit from the upcoming Super Bowl, which is projected to generate a record $23.1 billion in bets nationwide, according to the American Gaming Association.
New Jersey is also poised to remain the leader in the US online gambling and sports betting market, as it has the most diverse and competitive offerings, the most experienced and innovative operators, and the most favorable regulatory environment. The state is also exploring new opportunities to expand its gambling industry, such as allowing bets on college sports and awarding new casino licenses outside Atlantic City.
New Jersey gambling has proven to be resilient and adaptable in the face of the pandemic, and it is likely to maintain its momentum and success in 2024 and beyond.
