New Jersey internet gambling sets record, boosts casino revenues

New Jersey’s internet gambling market hit a new high in September, with Atlantic City’s casinos and their online partners pulling in more than $208 million, according to figures released Thursday by the New Jersey Division of Gambling Enforcement.

This is the first time online gambling revenues have surpassed $200 million in a single month.

The record demonstrates the growing importance of internet gambling, while revenue from in-person gambling continues to lag behind pre-pandemic levels.

However, not all of this online money stays with the casinos.

A portion is shared with third-party tech providers who power the platforms, leaving in-person gambling as the main revenue source for many casinos.

Despite this development, in-person gambling revenues remain uneven.

Several casinos are still winning less money from their physical operations than they did in 2019, before the COVID-19 pandemic.

While total in-person gambling revenue exceeded the September 2019 figure by $6 million, five of the nine casinos reported lower in-person earnings last month than they did five years ago.

Boosted by internet gambling and a smaller contribution from sports betting, total gambling revenue for the state’s casinos, racetracks, and their partners reached $558 million in September.

This marks a 7.1 percent increase compared with September 2023.

“The ongoing success of internet gambling helped push Atlantic City’s total gambling revenue to its highest figure for the month of September in over a decade,” said James Plousis, chairman of the New Jersey Casino Control Commission.

“For the third consecutive month, total gambling revenue surpassed $500 million. Last year, total gambling revenue eclipsed $500 million only in August.”

Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, noted that while internet gambling is soaring, in-person gambling continues to lag.

“Year-to-date internet gaming continues to represent a significant share of Atlantic City operators’ revenue mix, contributing 40.8 percent of the total revenue for the industry through the first three-quarters of the year,” Bokunewicz said.

In terms of in-person gambling, Borgata led the market, earning $62.4 million in September, up 15 percent from the same period in 2019.

However, other casinos struggled.

Hard Rock’s in-person revenue dropped 4.7 percent to $44.6 million, while Ocean Casino reported a 28 percent drop, earning $28.4 million.

Other declines in in-person earnings were reported at Caesars, Harrah’s, and Tropicana, with drops ranging from 4.1 percent to 16.3 percent.

When internet and sports betting are factored in, some casinos performed better overall.

Borgata brought in $120.2 million, up 12 percent, while Golden Nugget’s total revenue surged 25.8 percent to $72.8 million.

However, others continued to decline or stagnate.

Resorts, despite its strong internet presence, saw a 3.4 percent drop in total revenue, while Ocean’s overall revenue fell 24 percent.

The state’s two racetracks, which accept sports bets, also contributed to the total revenue.

Along with their partners, the casinos and racetracks retained $119.5 million in revenue from nearly $1.1 billion in wagers.

This article includes reporting from The Associated Press