Big Jump in New Jersey Online Gambling Revenues in April

New Jersey Online GamblingBy Steve Ashfield.

April proved to be a highly successful one for the New Jersey gambling industry. Total winnings for the state’s casinos, horse tracks and their online partners were $511 million. That was 10.4% higher than in the same period in the previous year.

Online gambling played a major role in the increased level of revenue. Despite the US economy still having its problems, April produced the second-best-month for online gambling.

While the online sector of the New Jersey gambling industry continues to thrive, in-person gambling isn’t faring so well. The revenue for April was 6.3% lower than in the same period in 2023.

Why is this the case? There are still some gamblers who became used to playing online during the COVID-19 pandemic when land-based casinos were temporarily closed. That isn’t the case now but gambling online saw many players enter a whole new world.

They were able to be gambling on a 24/7 basis and playing games they might never have seen before. When the lock-downs came to an end, players did return to the bricks-and-mortar casinos but not so regularly.

They realized that to gamble on slots and blackjack etc, they could stay in the comfort of their own home and enjoy playing. Nothing quite beats going to a land-based casino but the online sector has grown enormously in recent years and doesn’t look like slowing down anytime yet.

The revenue from in-person gambling is important for the New Jersey industry. It’s a steady flow of revenue and no profit-sharing agreements are in place. The state’s casinos therefore prioritize the in-person side of their business in what is still a very competitive market.

The Director of the Lloyd Levenson Institute at Stockton University is Jane Bokunewicz and she has given her views on what is happening, particularly in Atlantic City. In recent times, operators have been busy making investments with the aim of “improving resort offerings.” This, she believes, suggests that “a significant shift in the market’s overall revenue mix” is on its way.

Her view is that diversifying revenue sources is important. That’s not all about gambling-related products and doing so will see competitiveness and resilience enhanced.

According to NJ.bet, the Borgata topped the revenue charts in April with winnings of $58.3 million. The site attracts players in New Jersey by offering exclusive games with low wager bonus and other promotions. That was clear of Hard Rock in second place with $41.1 million. It wasn’t such good news for other New Jersey casinos, especially Harrah’s. April saw their revenue fall by close to 25% when compared to the same period in the previous financial year.

It’s when sports betting and internet revenue is added, that a brighter picture develops. It’s common now for the land-based casinos to now be offering sports betting to their customers. This has been the case since a major change in US gambling laws in 2018.

A US Supreme Court Judge ruling stated that it was the individual state who could make the final decision on whether or not sports betting should be made legal. Since that ruling, which came about after a lengthy campaign spearheaded by New Jersey, over 30 US states have gone down that route.

It’s good news for gamblers and industry members. Also pleased with the change are the US states themselves thanks to all the gambling tax revenue that is received every month. That’s particularly been seen in New Jersey.

With all the areas of gambling included, the Borgata saw their April revenue figure jump to $107.7 million. Golden Nugget leaped into second sport with a $66 million revenue total. Resorts Digital, who only have an online presence saw their revenue figure make a substantial increase.

A total of $1 billion in bets was placed in April. That’s hugely impressive considering there are no NFL matches being played at present.

New Jersey therefore has a gambling industry in which internet betting is booming as is sports betting. The future does therefore look to be a rosy one. Regulation of the gambling industry is not as strict as in some other countries. There is still the willingness to ensure gambling is safe for players and underage players aren’t participating.

The future looks a rosy one with new technology promising more sophisticated and exciting games to be played. Get ready to see Virtual Reality handsets being used for more games and further growth in areas such as Live Casinos.

IMAGE CREDIT: Microsoft CoPilot

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