The internet gambling market in New Jersey is on a consistent rise and pulling strong figures, unlike physical casinos. Activity recorded in most brick-and-mortar platforms has continued to wane. According to figures published by the New Jersey Division of Gaming Enforcement, the online gambling market received $214 million in November, higher than the $213 million from the previous month. Also, November’s figure was approximately 25% higher than the same month from last year.
Online gambling platforms are attractive for several reasons. Users can find iGaming services like instantcasino.com where they can register within a few minutes to begin enjoying several perks, including a 200% welcome bonus, cash back, a wide selection of games, quick deposits and withdrawals, as well as their low barrier of entry confirmed by affordable minimum bets. These attractions have helped online gambling platforms create a solid niche for themselves and contribute to overall gambling milestones. According to New Jersey Casino Control Commission chairman, James Plousis:
“The continuing success of online gaming and sports wagering has helped total gaming revenue achieve its best November monthly result in over a decade.”
Internet Gambling not Considered a Replacement for In-Person Gaming
While this is laudable, casinos may not consider the high numbers an achievement because partners like tech platforms and sportsbooks take a significant percentage of the casino’s revenue. Consequently, these establishments believe their major source of income is from walk-in gamblers. However, numbers have been low.
In November, six of the nine casinos in Atlantic City made less from in-person customers than they did back in 2019. Hard Rock, Resorts, and Ocean were the only casinos that beat previous numbers.
According to Jane Bokunewicz, the director of the Lloyd Levenson Institute at Stockton University, which specializes in Atlantic City’s gambling sector, the state’s iGaming market crossed the $200 million mark for three consecutive months. Despite the seeming face-off between iGaming platforms and land-based casinos, Bokunewicz believes online action cannot replace in-person activity, adding that operators who can successfully offer both are more likely to inspire loyalty. On both methods of gambling, Bokunewicz said:
“To be clear, iGaming is not a substitute or replacement for the in-person gaming experience and different patrons may seek different online and in-person gaming products to suit their taste. iGaming complements in-person in that it is an extension of the customer experience – a new, often innovative, product that can be accessed on demand.”
Bokunewicz also says “land-based gaming is still the dominant component” of Atlantic City casino provider revenues because it was responsible for about 56% of total gross gaming revenue in November – when iGaming gross revenue hit a new record. To Bokunewicz, it is impossible to replace the experience and excitement obtainable on the casino floor, even with live dealer options. This directly references the difference in the atmosphere of a physical casino comprising intense gambling and high-stake sports betting, compared with isolated online gameplay.
Atlantic City Casinos and Their Numbers
Borgata had the highest revenue, rising over 25% from last year and hitting $122.6 million in November. Resorts was the second largest, climbing 28% to $101 million. While Golden Nugget and Hard Rock revenues went up 26% and 21%, respectively, winning $77 million and $63.5 million, Ocean got $39.4 million, while Bally’s was at $24.5 million. Harrah’s, Tropicana, and Caesars, all went down, losing 4.4%, 7.3%, and 7.4%, respectively.
For in-person revenue, Borgata again was the highest, climbing 11.4% to $57.5 million. Hard Rock rose 7.1% and hit $44.3 million, while Ocean rose 8.2% to $34.
Last month, the Division of Gaming Enforcement published a report detailing Atlantic City’s financials in the third quarter of 2024. According to the report, the city’s casinos had a net revenue of $943.2 million, a 2.9% drop from figures recorded in the same quarter last year. The casinos’ gross operating profit also fell, losing 13.6% and hitting $242.9 million. The report also includes details of hotel occupancy, noting that the hotels lost 1.5 percentage points compared to the same quarter of 2023.
New Jersey Considers Amending Laws on Underage Gambling
Away from record iGaming revenues, New Jersey is also making the news as the state mulls decriminalizing underage gambling. Republican representative Clarie Swift co-sponsored a bill with the Democrats’ Anthony Verrelli, seeking to reduce underage gambling violations to a civil infraction. Currently, anyone younger than 21 years of age who gambles in person or online, or participates in the state lottery, faces a misdemeanor criminal charge. However, the proposed New Jersey Assembly Bill 5086 only prescribes a fine of up to $500 for the first offense, up to $1,000 for the second, and up to $2,000 for any subsequent violation.
Bill 5086 also finds guilty a person at least 21 years old who allows a minor in their care to gamble. Additionally, a casino employee may be guilty of a disorderly person’s offense if they allow an underage person to gamble. The bill now awaits a vote from the entire New Jersey following approval from an Assembly committee.
New York Threatens New Jersey
Casinos in New Jersey are facing a threat from New York as it plans to introduce online gambling, currently illegal. A racetrack operator in northern New Jersey, close to New York City, has noted that in response to some new New York casinos that are opening soon, New Jersey will likely construct a casino in the Meadowlands when New York casinos launch. Atlantic City Mayor Marty Small also acknowledges the threat of New York casinos. During the East Coast Gaming Congress earlier this year, Small said:
“Now more than ever we know there’s a threat coming with New York City gaming coming. We understand the threat. We want to continue to work together to do things right to put Atlantic City into a prime position, no matter where these casinos are, that we diversify our options.”
In general, stakeholders acknowledge the threat and believe New Jersey must brace itself. According to Hard Rock International chairman Jim Allen, Atlantic City must be prepared for its in-person gambling revenues to crash up to 30% when up to three casinos open in or around New York City. Either way, New York City’s upcoming gambling scene is strong competition for the vibrant market in New Jersey.
