The gambling industry in New Jersey has undergone a significant transformation in recent years, with the rise of online gambling and sports betting. In November, both these sectors set new records, showcasing the growing popularity and acceptance of these alternative forms of gambling.
In November, New Jersey witnessed a staggering $171.5 million in winnings from online table games and slots, according to the New Jersey Division of Gaming Enforcement. This marks a significant milestone in the state’s gambling history, highlighting the growing preference for online gambling platforms.
Contrary to concerns about online gambling competing with traditional casinos, Jane Bokunewicz, the director of the Lloyd Levenson Institute at Stockton University, believes that these virtual platforms complement in-person gaming experiences. In fact, she suggests that internet gaming and sports betting are filling a niche for certain gamblers, enhancing the overall gambling ecosystem in Atlantic City. The stability of brick-and-mortar gaming revenue indicates that the market remains steady, with in-person experiences still holding significant value for players.
In addition to online gambling, sports betting has emerged as a major revenue driver for the Atlantic City gambling market. In November alone, casinos and racetracks accepting sports bets raked in a staggering $1.62 billion in bets, reaching new heights for the industry.
While the “handle,” or the total amount of money bet on sports, reached record levels, the revenue retained by casinos and tracks after paying out winning bets and other expenses was relatively modest. Out of the $1.62 billion worth of bets, only $96 million was kept as revenue. This highlights the high payout ratios and expenses associated with sports betting, but it also reflects the intense competition in the market.
The Meadowlands Racetrack, located just outside New York City and known for hosting a FanDuel sportsbook, emerged as a frontrunner in the sports betting domain, winning more than $57.6 million in November. Resorts Digital, in affiliation with DraftKings, also performed well, securing more than $19 million from sports betting activities.
When considering the broader picture of gambling revenue in New Jersey, including online gambling and sports betting, the market-leading Borgata won more than $97 million in November. However, this figure represented an 8.6 percent decrease from the previous year. Despite the challenges faced by traditional casinos, some establishments, such as Hard Rock and the Ocean Casino resort, managed to surpass their pre-pandemic revenue levels in terms of in-person gambling.
In the realm of online gambling, the Golden Nugget emerged as a significant winner, securing more than $50 million from internet casino games in November. This marked a significant increase of nearly 33 percent compared to the previous year. Other notable performers included Resorts Digital, the internet arm of Resorts Casino, which garnered $47.2 million, and the Borgata, which won nearly $38 million online, despite a 14.4 percent decrease.
When focusing solely on revenue generated from in-person gamblers, the picture becomes more nuanced. Only Hard Rock and the Ocean Casino resort managed to surpass their pre-pandemic revenue levels in November. The rest of the casinos experienced varying degrees of decline, with the Borgata witnessing a 6.1 percent drop in revenue from in-person gambling activities. These figures underscore the ongoing challenges faced by traditional casinos in attracting and retaining customers.
