The online gaming market has experienced a major surge in popularity and revenue over the past decade. More and more states decide to legalize and regulate the market instead of making people cross the state borders and participate in illicit gambling. And while the pandemic was a huge blow to land-based casinos, iGaming flourished.
Naturally, online gaming started to impact land-based casinos and the way they operate their establishments.
Background on the Land-Based Casino Industry in New Jersey
In 1974, New Jersey voters rejected statewide casino gambling legalization, but two years later they backed a new referendum that authorized casinos but only in Atlantic City. Resorts Atlantic City, the first NJ casino, opened its doors in 1978.
Nowadays, New Jersey is a bustling market for all types of gambling. There are now 10 land-based casinos and 27 retail sportsbooks in New Jersey. The New Jersey gambling revenue for 2022 reached $5.2 billion, with $2.78 billion of that figure coming from land-based casinos.
What about the biggest players on the market? After all, choosing the best casino sites in New Jersey can be rather tricky. Well, according to the latest data on land-based casino revenue available, Borgata made $724 million. Hard Rock made $492 million. Ocean earned $356 million. Harrah’s made $257 million. Tropicana earned $248 million. Caesars brought in $235 million.
In 2022, casinos, sportsbooks, and online gambling businesses paid more than $526 million in taxes, with a 15% tax on online gambling income accounting for about half of that amount.
The Emergence of Online Casinos in New Jersey
New Jersey was the first state in the US to authorize online gambling in 2013. By 2017, New Jersey had a dozen different casino brands players could choose from, which was a huge variety for the time. As a pioneer in the gaming market, New Jersey legalized daily fantasy sports in 2018. Casinos, sportsbooks, and racetracks in New Jersey now accept bets placed online.
As we’ve mentioned above, the online gaming market proved to be a reliable source of tax revenue for the state of New Jersey. The states who decided not to authorize online gambling quickly came to regret their decision after seeing the overwhelmingly positive results that states with regulated iGaming, like New Jersey, are experiencing.
Impact of Online Casinos on the Land-Based Casino Industry
As we’ve mentioned above, the Pandemic had a huge impact on the gambling market, trumping the revenue from land-based casinos and giving a surge in the popularity of online gaming. Many players came to see the benefits and comfort that come with playing in the comfort of their homes.
Although more study has to be done on the subject, preliminary data clearly shows that, at least at the macro level of a state, internet gaming does not have a detrimental influence on income from land-based gaming. In fact, the scant data reveals that despite the rise of online gambling, land-based income is still increasing.
This is why programs that motivate players to visit physical establishments after playing at an online casino are so important. By bringing in more players in person, they will increase land-based income and probably decide the properties’ future profitability.
Potential to Drive Economic Growth in New Jersey
Online gaming is a rather young industry that experiences unparalleled levels of success. There is a lot of potential for improvement and development in the future, with new brands, products, and technologies being introduced every year.
Other than the tax revenue, the industry can also bring in other benefits.
New Jobs. Land-based casinos have a lot of moving parts and companies involved. The same goes for online casinos that can provide the state with many job opportunities in the gaming and technology markets.
Tourism. As of writing this article, only six states permit online gaming and this attracts many people from neighboring states who want to participate. Online gaming can also attract players from across the globe thanks to the intrigue and convenience offered.
What Does the Future Hold?
As we can see, there is a lot of promise and potential in the bustling online gaming market of New Jersey. The industry proved itself to be a reliable source of tax revenue, additionally, it motivates land-based casinos to remain competitive, which is favorable for the market. Also, it has attracted many new players to not only online products, but also land-based establishments. So the future seems bright for the bustling casino industry of the Garden State. If you are planning on playing abroad, you should check out this 1 euro deposit casino.
