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While usually progressive states like California seem further away than ever from legalising online gambling verticals, the market in trail-blazing New Jersey continues to go from strength-to-strength.
You can find a list of the best NJ online casino sites at bestcasinosites.net, with these operators continuing to see their quarterly revenues increase while the state’s treasury receives record yields in tax payments.
We’ll explore this seemingly relentless growth in the article below, while asking what the future may hold for iGaming in NJ.
Delving Beyond the Numbers – The Growth of iGaming in NJ
There can be no doubt that the iGaming market in NJ has grown exponentially during the last 18 months or so, with the coronavirus pandemic having helped to accelerate the trend for online gambling in the state.
This has been borne out by the recent year-on-year increase in monthly gross earnings, which peaked at $374.2 million in May.
This not only represented a third consecutive month of significant growth, but it also yielded a year-on-year increase of 290.4% according to state gambling regulators. This is a huge spike in activity, even accounting for the coronavirus pandemic and the subsequent hike in online gambling.
In terms of monthly growth, May’s numbers were noticeably higher than April’s recorded revenue, which peaked at an impressive $352.2 million.
The biggest winners were the Garden State selection of sportsbooks, who have emerged as some of the most successful in the US since their inception following the legalisation of sports betting in NJ in 2018.
These operators earned a cumulative amount of $52.8 billion in May, bringing their year-to-date total for the market to $297.07 million.
Next up was the Borgata online operation ($48.67 million), which narrowly out-earned Golden Nuggets’ burgeoning operation (which managed to bank $31.1 million during the reporting period. Resorts Digital, which owns the PokerStars NJ brand, also recorded eight-figure earnings of $21.5 million, with the state’s total iGaming operation reporting a 25.9% year-on-year uptick.
These numbers make for incredible reading, while they seem to have sustained New Jersey’s wider gambling market throughout the pandemic.
This suggests that iGaming will continue to grow at a faster rate than land-based casinos, as it claims a larger share of the overall marketplace and replaces the tax revenues lost as brick-and-mortar revenues dwindle.
The End of the Pandemic – What’s Next for iGaming in New Jersey
There’s no doubt that the recent spikes in iGaming revenues have been underpinned by the coronavirus, which caused Atlantic City to close its doors through much of 2020.
This trend came to a head in March 2021, when the state’s virtual operators reported a yield of $113.7 million from gamblers. What’s more, these levels have been largely sustained in the three months since, with May’s total winnings coming in at $108.2 million.
However, there are signs that the coronavirus pandemic is becoming less impactul in the states, with a number of states having recently reopened their economies to the general public.
This has created a scenario where the US economy has evolved to a point where it’s now larger than it was prior to the pandemic, with the various casinos in Atlantic City having opened their doors once again.
But is this likely to impact negatively on iGaming revenues? The short answer is yes, as there’s no doubt that online yields have been inflated sharply by the rising number of players who have been compelled to transition from brick-and-mortar establishments.
This means that we’re likely to see some shift in the landscape in the coming quarter, as some of this demographic return to their local land-based casino and spend their money here.
However, it’s likely that some of these players will also continue to wager online, either exclusively or alongside less regular, brick-and-mortar casino trips. This should sustain an overall increase in gambling revenues going forward, which is great news both for operators and the state’s treasury.
Similarly, the enforced lockdowns of 2020 left a disproportionate number of people out of work and spending more time at home, creating a new and potential younger demographic for online casinos to target.
As a result, we’ve seen a new generation of casual players enter the iGaming market in NJ, which represents a significant shift in the landscape overall.
This bodes well for iGaming in New Jersey, while it may also blaze a trail for other states to follow in the near and medium-term!