Aside from the glittering lights and feverish energy of the iconic establishments that line Las Vegas’s famous boulevard, New Jersey may well lay claim to the richest gambling history in North America. With voters approving the creation of a gambling center in the shape of Atlantic City way back in 1976, the Garden State has long been known as the East Coast’s answer to Nevada’s adult playground. And, while the golden age of Atlantic City’s casino scene may well be over, a period which saw major casinos such as Trump Taj Mahal, Bally’s, and Caesars take billions of dollars in revenue, the recent emergence of American iGaming has set the stage for a new era of gambling in the state. Let’s take a closer look at the numbers to see how New Jersey is faring in this exciting gambling landscape.
New Jersey’s current gambling landscape
Considering the state’s long-established progressive stance on gambling, it comes as no surprise to see it at the forefront of the recent transformation of gambling laws across the country. In 2013, internet gaming was legalized, becoming one of America’s first regulated iGaming markets and giving New Jerseyans the ability to play slots, poker and other table games online without having to access offshore sites. New Jersey was then instrumental in the 2018 Supreme Court decision that struck down the federal ban on sports betting – an event that has reshaped U.S gambling forever. Following the PASPA repeal, New Jersey, along with 39 other states, has launched hugely popular regulated sports betting markets, generating a reported $52.7 billion in annual tax and tribal revenues while supporting approximately 1.8 million jobs. As of the end of 2024, New Jersey was home to 9 land-based casinos, 29 online casinos and 14 online sportsbooks, all contributing to a statewide commercial casino gaming revenue of $6.3 billion.
iGaming revenues reach a record high
The most recent report from the New Jersey Division of Gaming Enforcement (DGE) has shown record numbers for the state’s iGaming industry. In the month of August, online casinos in New Jersey generated over $248 million in total revenue, usurping the previous record of $247 million achieved the month before and highlighting the industry’s continued upward trajectory. This record figure reflects a 25.2% year-on-year increase from 2024, helping to contribute to the more than $1.8 billion already generated from iGaming this year. Much of this growth is being driven by major platforms like FanDuel, DraftKings and BetMGM, which have all experienced similarly impressive financial figures this year. The competitive nature of New Jersey’s market is likely further influencing growth, with platforms needing to maintain high standards in terms of gameplay quality and user engagement to maintain their place in a saturated sector. As the latest innovations in gaming and marketing make their presence felt, expect figures to continue rising.
Brick-and-mortar venues holding strong
With iGaming revenues so strong, it seems logical to think that traditional land-based establishments might be struggling as a consequence. However, revenues from Atlantic City’s casinos remain higher than the rapidly growing online scene. August saw casinos take in nearly $312 million, a more than healthy total representing a 6.1% increase on the previous year’s takings. Slot machines continue to be the dominant income generator, taking in over three times as much as classic table games. Growth figures suggest that the brick-and-mortar industry is expanding at a far slower rate than that of iGaming, with it possible that the digital sector could soon overtake the traditional scene. Ultimately, this is also reflective of the differing stages each market is at. Now nearly fifty years old, the land-based sector has matured past the explosive growth the iGaming industry is evidently still experiencing.
Is sports betting growth slowing down?
A surprising datapoint from the latest DGE report shows total sports wagers down from the previous year’s figures. Albeit only by 1%, with this figure dropping further to 0.8% when only considering online sportsbooks, is this a sign of the sports betting market slowing down? With sports betting booming across the U.S, it appears strange for New Jersey’s market to be flatlining in this way; however, it may in fact be this nationwide opening up of sports betting that is negatively impacting the state's revenues. Noisy neighbor New York launched its own sports betting market in 2022, quickly establishing itself as the largest and most profitable in the country. Could it be that New Jersey has lost some of its business as a result? Despite this, August was a positive month with the industry taking in nearly $82 million, a 31.5% year-on-year increase that is encouraging as operators look forward to the sports events during the fall season.
Looking ahead in the Garden State
Despite the rosy financial picture reflected in recent financial figures, there are some upcoming challenges that operators in New Jersey look set to face. While New Jersey already exists in the highly competitive Mid-Atlantic region, the pending licenses of three major casino-resorts in the New York City area are going to further elevate the competition for customers. This is all the more impactful considering the historical culture of deep-pocketed New Yorkers heading across the Hudson River to play the table games in Atlantic City casinos. Furthermore, regulatory reform is on the horizon in New Jersey, with amendments to laws governing things like progressive jackpots for casino games, self-exclusion protocols and the licensing of Atlantic City casinos. With major market and legislative upheaval ahead, operators and players alike will be closely following the emerging developments.
While there is no doubting the challenges down the road, the continued success of New Jersey’s gambling industry should not be sniffed at. As an integral figurehead of a new era of regulated online gambling in the U.S, it continues to stand high in terms of business revenues. Figures from 2024 showed a total economic impact of $11.9 billion in the state, supporting nearly 52,000 jobs. Considering the positive trends being seen across the gambling sector, these numbers will surely be even greater by the end of 2025.
