New Jersey’s Online Gambling Boom: November Sets Record Despite Casino Revenue Struggles
ATLANTIC CITY, N.J. (AP) — New Jersey’s burgeoning internet gambling sector continued its impressive growth trajectory in November, posting record figures that overshadowed a drop in revenue from traditional casino operations. Data released by the New Jersey Division of Gaming Enforcement on Monday revealed that online gambling generated over $214 million, a slight increase from the previous record of $213 million set in October.
Online Success and Casino Challenges
“The continuing success of online gaming and sports wagering has helped total gaming revenue achieve its best November monthly result in over a decade,” stated James Plousis, chairman of the New Jersey Casino Control Commission. However, the record-breaking internet gambling revenue comes with a caveat; casinos are required to share a substantial portion with partners, including sportsbook operators and technology platforms. This means that the in-person gambling revenue, which the casinos consider their core business, is critical to their overall health.
The in-person revenue from Atlantic City’s nine casinos collectively reached $223.9 million in November, matching their pre-pandemic totals. Yet, only three of the casinos — Hard Rock, Ocean, and Resorts — managed to exceed their pre-pandemic revenue levels from November 2019.
Continuing Trend in Internet Gambling
The trend of increasing online gambling revenue has persisted for several years and was significantly accelerated by the COVID-19 pandemic, which forced casino closures for 3.5 months in 2020 and pushed many consumers to explore online options. In November 2023, the internet gambling revenue marked a nearly 25% increase compared to the same month last year, signaling a deepening reliance on digital gaming platforms.
According to Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, this marks the third consecutive month in which New Jersey’s internet gambling market has surpassed the $200 million threshold.
Comprehensive Revenue Picture
When combined with sports betting, the total revenue for New Jersey’s casinos, two horse tracks that accept sports bets, and their online partners reached $556 million in November. This figure represents a 15.4% increase compared to the previous year, driven in part by having more weekend days in November compared to October.
Borgata led in overall revenue with $122.6 million, reflecting an increase of over 25% from a year earlier. Other notable performances included Resorts, with nearly $101 million in revenue (up nearly 28%), and Golden Nugget, which saw revenues approach $77 million (up 26%).
In-Person Revenue Breakdown
Examining in-person revenue alone, Borgata earned $57.5 million, an increase of 11.4%, while Hard Rock and Ocean also reported gains of 7.1% and 8.2%, respectively. Conversely, several casinos experienced declines: Harrah’s dropped by 5.6%, Tropicana by 6.6%, and Caesars by 7.4%.
Sports Betting Overview
The sports betting sector also contributed significantly, with nearly $119 million in revenue generated from $1.2 billion in bets. The Meadowlands Racetrack in East Rutherford reported $50.5 million in sports betting revenue, marking a 12.3% decline compared to last year. Meanwhile, Resorts, aligned with DraftKings, nearly doubled its sports betting revenue to approximately $38 million.
In contrast, Monmouth Park reported a 163% surge in sports betting revenue, totaling $2.5 million, likely benefitting from the upcoming closure of Freehold Raceway’s sports betting operations.
Conclusion
As New Jersey’s online gambling sector continues its upward trajectory, traditional casinos face challenges in regaining pre-pandemic revenue levels from in-person gambling. With substantial growth in internet gaming and sports betting, the landscape of the state’s gaming industry remains dynamic and evolving.