New Jersey’s Gambling Industry Hits Record Highs in January

Unprecedented Growth in Digital and Sports Betting

The state’s Division of Gaming Enforcement revealed staggering figures, showing that Atlantic City’s nine casinos, along with the three horse tracks that accept sports wagers and their online partners, collectively amassed over $559 million in revenue.

This 28% year-over-year increase was significantly buoyed by an unprecedented surge in internet gambling, which brought in $183 million, and sports betting revenue, which nearly doubled to $171 million.

While these numbers are impressive, it’s important to note that the profits from online gambling and sports betting are not solely retained by the casinos. These revenue streams involve sharing with third-party providers, such as technology platforms and sportsbooks, diluting the direct financial benefit to the casinos themselves.

Weather Impacts and the Shift to Online Betting

Jane Bokunewicz, from the Lloyd Levenson Institute at Stockton University, pointed out that the harsher winter weather in January 2024 likely contributed to the shift from in-person to online gambling. This transition has been a growing trend, further accelerated by the pandemic, with in-person casino winnings in January 2024 dropping by 3.1% from the previous year, still not recovering to pre-pandemic levels.

Despite the overall gloom in in-person gambling, the Borgata, Hard Rock, and Ocean casinos bucked the trend, registering higher in-person winnings than in January 2019, before the pandemic. However, this success was not uniform across all establishments, with two-thirds of Atlantic City’s casinos still struggling to reach their pre-pandemic in-person revenue figures.

Sports Betting Reaches New Heights

The sports betting sector in New Jersey also saw unprecedented activity, with a total of $1.71 billion in bets placed in January, surpassing the previous record. The Meadowlands Racetrack led the charge with a 137% increase in sports betting winnings from the previous year.

The Borgata led the pack with a combined revenue of $107.6 million, while others like the Golden Nugget and Hard Rock also saw significant gains. However, not all casinos fared as well, with entities like Harrah’s and Caesars experiencing declines in in-person winnings.

Objective Commentary: Navigating the New Normal in Gambling

New Jersey’s gambling industry is at a crossroads, with traditional in-person betting no longer the sole engine of growth. The shift towards online gambling and sports betting, accelerated by the pandemic and changing consumer preferences, poses both opportunities and challenges.

While these platforms offer new revenue streams and the potential to attract a broader audience, they also necessitate sharing profits with third-party providers and adapting to a competitive digital landscape. As the industry continues to evolve, the ability of casinos to innovate and integrate these new forms of betting will be crucial to their long-term success and sustainability.