New Jersey legalized in-state online gambling in 2013 and online sports gambling in 2018, becoming one of the pioneer states. It has also restructured its gaming laws to make them among the least prohibitory in the United States. These drastic steps translate to bigger gains, with the state recording consistent revenue growth in online gaming even in the face of an economic downturn.
The Breadth of the New Jersey Online Gaming Market
The Garden State has spearheaded the growth of online gaming in the US. Consequently, its online gaming scene has recorded an average monthly growth of 10% for 2022, with the monthly revenue surpassing $135 million.
New Jersey's casinos make the bulk of their online gaming revenue from online slots, which rake in about 95% of the total earnings, as per data coming from this NJ Bet online casino guide. The other earners are peertopeer internet poker and sports betting.
The figures paint a glorious picture, especially considering the modest returns recorded during the initial days. The state's casinos made a paltry $123 million in 2014, the first full year of operation after legalizing online gambling.
The earnings have swelled considerably to $970 million in 2020 and over $1.4 billion the year after. Online gaming is now the state's casinos' second largest cash source. Only slots bring in more revenue. However, the latter source is not growing nearly as fast or consistently as online gambling.
Despite the sustained growth, driven mainly by FanDuel, Meadowlands, Resorts Digital and the Borgata, statistics reveal that the state's gains may recede because of competition from the neighboring states.
The coming months may see the double-digit growth show the initial signs of a pullback, with experts blaming the expansion of New York state's online gambling space and the continued growth of the Illinois market propped by its bigger market. The same experts suggest that the growth of the New Jersey online casino gaming environment could be a victim of its success, with the projected stagnation resulting from the market attaining maturity.
Other Challenges to Sustained Growth
The bill that ushered the era of online gambling in New Jersey also set an expiration date. Because of the devil in the details spelled out in the bill, the wellspring of cash for the state's casinos may dry out in 2023.
Luckily, the state's legislature realizes the importance of online gambling and is pushing a counter bill to make the practice legal for another decade. A cosponsor of the bill said extending the statute is beneficial to everyone.
The continued growth of competition from neighbors implies that New Jersey must improve innovation in the online gaming scene by launching new platforms and offering more options to play. It must also offer better products that are more engaging if it wants to retain its market share.
