We have witnessed the iGaming industry explode in terms of popularity in the last few years. But 2023, it is estimated to reach more than $92.9 billion in value.
Statista reported in March 2022 that it was currently valued at $59 billion, which means that it is growing so rapidly it is expected to almost double in the next year alone.
What is iGaming?
iGaming is the term that we use to describe online betting and gambling. Gambling and betting have been around for thousands of years, specifically starting with card games and evolving into the many games we play today.
Originally poker, blackjack, roulette, slots, and more would occur at a land-based casino. However, since technology has evolved, how we participate in these games has changed, many people play online. The online version of these games comes under the term iGaming.
How Big is the iGaming Market in New Jersey?
New Jersey played a key role in changing the landscape of igaming in the USA, and part of that was the successful court battle where they managed to have the PASPA overturned.
This meant that New Jersey – and many other states were able to make sports wagering legal.
This huge move meant that it wasn’t just Nevada that could take a slice of this burgeoning part of the igaming market.
The PASPA was overturned in 2018, and since then, the month-on-month revenue of New Jersey has skyrocketed.
What is PASPA? The Professional and Amateur Sports Protection Act means that no other state aside from Nevada was able to offer sports betting legally. Once it was overturned, over 20 states reintroduced the legislation they once had or introduced completely new legislation for sports betting.
As a quick comparison, revenue from gaming:
- June 2018 Revenue: $3,458,668
- January 2019 Revenue: $18,777,582
- August 2019 Revenue: $25,210,341
- January 2022 Revenue: $60,195,902
- June 2018 State Tax Revenue: $337,077
- January 2019 State Tax Revenue: $2,532,619
- August 2021 State Tax Revenue: $6,678,542
- January 2022 State Tax Revenue: $8,019,106
We can see that once the legal standing of sports betting changed, the revenue for NJ rose at speed.
What Are the Other Factors in iGaming Growth?
While the overturning of the PASPA was a huge win and opened the door to potential massive growth, several other factors have contributed to the incredible igaming revenue that NJ is seeing.
Bill No. A2578
It has been a long time coming for New Jersey to be the igaming titan we now see. Online gambling was restricted under The Unlawful Internet Gambling Enforcement Act (2006) and The Federal Wire Act (1961).
Until the moment that bill No, A2578 was passed. This bill was to authorize licenses for online gambling sites. This brought a new wave of igaming, resulting in an influx of options for players and businesses alike.
As soon as the bill came into effect, Caesars Entertainment was one of the applicants.
Golden Nugget, Resorts Digital, and BetMGM were among the six land-based partners that began developing websites. Even though they were still in development, very new and had limited mobile choices, these online casinos showed promise.
Over time, clear frontrunners came into place and some of the best NJ online casinos ranked by Time2play quickly rose to become leaders in this new market for New Jersey.
The pandemic’s Impact on igaming in New Jersey
In April 2021, the New Jersey Division of Gaming Enforcement announced that internet gambling saw online casinos take around $108 million, a huge 35% increase from April 2020.
When land-based casinos were forced to close, the igaming industry quickly pivoted and focused its efforts on mobile-optimized websites, great desktop sites, and mobile applications. They made it as easy as possible for those who loved land-based casinos to play at home.
Technology and iGaming in New Jersey
We know that the online casino industry focused its efforts on innovation and improving its user’s online experience. But there are specific technologies that go into making casino games enjoyable and accessible.
Live casinos bring the atmosphere and excitement of a casino directly to the player in their home—the hybrid of brick-and-mortar and online gaming.
HTML5 coding allows the game developers to write code that will be utilized across multiple devices, which means that all of the most popular games can be played on whatever device a person has available.
In-play betting has made a significant impact on online betting and offers sports fans some of the most dynamic ways to bet. They can make quick predictions as the game is in play. They are bringing a new element of fun.
Which sports are the most popular for sports betting in New Jersey?
Even though sports betting is still relatively new in New Jersey, it has one of the most dominant positions in the industry across the US. What makes sports betting so interesting in NJ specifically is that there is a diverse range of popular sports there.
Research shows that people of NJ are just as likely to put a bet on a hockey game, a basketball game, or football.
Since New Jersey was the spearheading state in the battle to legalize sports betting, it makes sense that they knew there was a huge and eager audience waiting to place a bet on their favorite team.
And they were right to be ready because, for the Super Bowl LVI, New Jersey saw an incredible $143.7 million wagered.
New Jersey is set on dominating the sports betting industry and keeps setting and breaking records. It’s only been three years since NJ could offer so much in terms of igaming to its residents, but New Jersey surpassed all expectations – and we should expect to see more growth in the next few years.