Where New Jersey Stands in the U.S. $100B Gambling Industry

When people talk about gambling in America, they may think about Vegas lights. But the real story started in New Jersey. When most states still treated online casinos like contraband, New Jersey legalized them in 2013. A decade later, the Garden State is in a tight race with Pennsylvania and Michigan. The U.S. gambling industry just blew past $100 billion, and New Jersey is fighting to keep its position in the top three.

The AGA Report

The American Gaming Association’s 2024 State of the States report is out. Commercial gambling revenue hit a jaw-dropping $66.5 billion last year, breaking records for the fourth straight year. Throw in tribal gaming, and you’re looking at well over $100 billion moving through the U.S. legal gambling economy. That’s more than the GDP of some nations.

Slots, table games, and sports betting all contributed to this success, but iGaming is the engine with the most torque.

According to the AGA, online casino revenue alone hit $8.41 billion in 2024, a massive 28.7% year-over-year jump. Only seven states have legal, full-scale iGaming in the country, and three of them, Pennsylvania, Michigan, and New Jersey, pull in most of the money.

New Jersey was early to the party. It legalized online casinos in 2013, when most states still feared the word “iGaming.” Now it's generating more than $2.4 billion a year from that decision.

But here’s the twist: Pennsylvania and Michigan have caught up. Some months, they even beat New Jersey. The reason could be attributed to bigger populations. More aggressive mobile campaigns. And frankly, better momentum in 2024. Still, New Jersey holds its ground as one of the best.

The Numbers

Here's where New Jersey stands:

$2.39 billion in iGaming revenue in 2024

+24% year-over-year growth

Over $240 million in iGaming revenue in May 2025 alone.

Online casino revenue now rivals New Jersey land-based casinos. For context, the state’s retail casinos brought in $2.82 billion last year. So yeah, your phone screen is almost as valuable as the casino floor.

And then there’s sports betting. In 2024, New Jersey pulled in $1.09  billion from a staggering $12.7 billion wagers. May 2025 results were especially noteworthy thanks to the NBA and NHL playoffs. The state logged over $1 billion in bets and earned $102.5 million in revenue. This is a 20.5% leap year-over-year, with $98 million from online alone. Physical sportsbooks barely moved the needle.

Why New Jersey Still Ranks High

So, how is New Jersey still holding its ground while others are working so hard to pass it? Simple. It got in early, built smart, and doesn’t let up:

1. New Jersey was first: New Jersey wasn’t waiting for permission. It pushed through legal barriers early, giving itself a head start. Players got comfortable betting online. Operators had time to test, fail, and refine. That’s why the state has over 30 licensed online casinos today.
2. There is real competition: Unlike other states where a few big brands dominate, NJ has a real fight going on among many operators. With a crowded field, the pressure is on. Even big names like BetMGM online casino[1] must constantly update their offers and game selection to stay relevant.
3. The players know what they’re doing: New Jersey bettors are experienced. They want more than just flashy slots. They want live dealer games, blackjack streams, and poker rooms. The state delivers to players what they need.

What Happened Since Legalization

Ten years ago, the idea of betting on your phone was sketchy. Now it’s the new standard. New Jersey helped normalize it. Since going live:

iGaming grew from a niche product to a $2+ billion a year machine

Sports betting became mobile-first

Poker stayed alive thanks to interstate compacts.

And don’t forget: this industry is feeding the state. In 2024, iGaming and sports betting brought in hundreds of millions in tax revenue, which is used for education, addiction services, and infrastructure.

The Downside

Let’s not pretend it’s all perfect. Problem gambling is getting in the way. Calls to NJ’s gambling helpline were up 277% in 2024, which is concerning.

The state is aware and making significant strides in combating this downside. Lawmakers are holding hearings, advocacy groups are demanding better protective measures, and operators are being told to tighten up their advertising strategies.

If New Jersey wants to stay at the top, it’ll have to lead on responsible gambling, not just tech and numbers.

New Jersey is Still One of the Best

New Jersey’s journey from legalizing iGaming in 2013 to ranking among the top three iGaming states by 2025 demonstrates the effectiveness of its strategy. NJ continues to set an example in the field through solid regulation, substantial operator diversity, and consistent double-digit growth. Though challenged by fast-rising rivals like Michigan, the Garden State has been in the ring longer than most and knows how to adapt. Gambling is a $100 billion industry in the U.S.. With nearly equal revenue shares across casinos, iGaming, and sports betting, New Jersey reflects the modern gambling landscape while bringing in billions of dollars each year. If other states wish to find success, New Jersey’s model is what they need to replicate.