The legalization of online gambling in New Jersey took effect in November 2013. This made the Garden State one of the first states in the US to regulate and legalize online casino gambling. Legal forms of online gambling in New Jersey include online slots; table games such as blackjack and roulette; poker; sports betting; and live dealer games, in which players interact with real dealers through live streaming.
The Division of Gaming Enforcement (DGE) in New Jersey oversees and regulates online gambling, ensuring that all online casinos and operators comply with the state’s strict gaming laws and standards.
To stay abreast of changes in the gaming industry, many physical casinos in Atlantic City have partnered with online gambling operators to offer their services online. This synergy between land-based and online casinos has contributed to the success of online gambling in the Garden State. Moreover, mobile integration has made online gambling even more accessible, further expanding the online casino sector in New Jersey. Mobile gambling apps and websites have become incredibly popular in the state, allowing players to gamble on their smartphones and tablets, making it convenient to enjoy casino games from anywhere within the state.
With the legalization of online gambling, the state of New Jersey also took regulation of the sector extremely seriously. Licensing and regulating online casinos in Atlantic City is the responsibility of the New Jersey Division of Gaming Enforcement (DGE). It ensures that operators meet strict standards for fairness, security, and responsible gambling. Furthermore, to promote responsible gambling, online casinos in the state provide resources and tools for players to set limits on their betting and seek help if they believe they have a gambling problem.
One common way for online casinos operating in New Jersey to attract new players and retain regular patrons is to offer various casino incentives. These sites regularly offer promotions, bonuses, and loyalty programs. These can include match bonuses, free spins, cashback, and rewards for regular play.
Online Casino Industry in New Jersey
With the Garden State being one of the first states to legalize online gambling, players residing in Atlantic City were among the first casino fans to enjoy their favorite casino games online. New Jersey introduced legal online gambling with the passage of Bill A2578 on February 26, 2013.
Under the bill, casino operators that had already obtained land-based casino permits in Atlantic City were allowed to apply for Internet Gaming licenses and partner with iGaming software providers or operators.
When applying for an online casino license, operators must pay a non-refundable deposit of $100,000. If the application is approved, this money goes toward the $400,000 cost of the actual license. Approved applicants must also pay a $250,000 renewal fee in addition to the annual $250,000 fee for operating an online casino in New Jersey.
- All operators that have obtained an Internet Gaming permit must pay a tax rate of 15% on their gross gaming revenue. An additional 2.5% of the GGR is paid to the Casino Reinvestment Development Authority (CRDA)
- Casino Service Industry Enterprise License
- Vendor Registrant
- Ancillary Casino Service Industry Enterprise License
- March 2023: Bill A240 was introduced to permit courts to assign treatment for gambling addiction
- April 2023: Unibet entered the NJ online gambling market through a partnership with Hard Rock
- July 5, 2023: New Jersey’s online gambling legislation was extended for another five years
The five-year extension of online gambling in New Jersey might seem restrictive because it is exactly half of the original 10-year period granted when online gambling was first legalized in 2013. However, five years is far more acceptable than the original suggestion to extend the Garden State’s legal online gambling by just two years. In response to widespread criticism and concern, New Jersey lawmakers ultimately settled on a five-year extension.
New Jersey Internet Gambling Revenue by Months
A clear way to see the impact of the online casino sector on the overall New Jersey gambling industry is to examine monthly revenue. While the total Net Revenue and Gross Operating Profit (Loss) figures include land-based gambling and sports betting, we can see that online gambling has also contributed to increasing revenue, even helping the state return to its pre-pandemic levels.
The Monthly Internet Gross Revenue Reports for the Garden State reveal that the eight licensed online casinos in New Jersey reported Internet Wins of $152.9 million for January 2023. This number indicates a 10.9% surge compared to January 2022.
| 2023 | 2022 | Change % | |
|---|---|---|---|
| Bally’s | $5,140,854.00 | $1,203,793.00 | 327.1 |
| Borgata | $40,798,884.00 | $39,108,303.00 | 4.3 |
| Caesars Interactive NJ | $8,272,822.00 | $10,045,743.00 | -17.6 |
| Golden Nugget/Golden Nugget Online Gaming | $40,596,496.00 | $36,485,877.00 | 11.3 |
| Hard Rock | $6,047,782.00 | $6,447,054.00 | -6.2 |
| Ocean Casino | $3,937,612.00 | $1,907,261.00 | 106.5 |
| Resorts Digital | $40,222,698.00 | $33,023,836.00 | 21.8 |
| Tropicana | $7,849,669.00 | $9,627,849.00 | -18.5 |
| Total: | $152,866,817.00 | $137,849,716.00 | 10.9 |
When we compare the numbers for February 2023 and February 2022, we see that New Jersey’s online casino licensees achieved a 9.7% increase, reaching Internet Wins of $142.6 million for February 2023.
| 2023 | 2022 | Change % | |
|---|---|---|---|
| Bally’s | $5,939,768.00 | $1,349,525.00 | 340.1 |
| Borgata | $39,736,855.00 | $37,831,314.00 | 5 |
| Caesars Interactive NJ | $8,309,315.00 | $10,066,088.00 | -17.5 |
| Golden Nugget/ Golden Nugget Online Gaming | $36,541,825.00 | $34,560,269.00 | 5.7 |
| Hard Rock | $5,619,451.00 | $6,045,686.00 | -7.1 |
| Ocean Casino | $3,794,936.00 | $1,120,750.00 | 238.6 |
| Resorts Digital | $35,964,598.00 | $29,902,791.00 | 20.3 |
| Tropicana | $6,686,218.00 | $9,099,668.00 | -26.5 |
| Total: | $142,592,966.00 | $129,976,091.00 | 9.7 |
Based on data provided by the New Jersey Office of the Attorney General, in March 2023 the eight licensed online casino operators generated Internet Wins of $165.7 million. This continued the growth trend, marking a 17.8% year-over-year increase compared to March 2022.
| 2023 | 2022 | Change % | |
|---|---|---|---|
| Bally’s | $6,742,392.00 | $1,799,769.00 | 274.6 |
| Borgata | $43,912,679.00 | $41,362,030.00 | 6.2 |
| Caesars Interactive NJ | $8,427,026.00 | $9,933,592.00 | -15.2 |
| Golden Nugget/ Golden Nugget Online Gaming | $42,709,332.00 | $38,280,684.00 | 11.6 |
| Hard Rock | $6,832,131.00 | $5,719,362.00 | 19.5 |
| Ocean Casino | $4,605,260.00 | $2,349,866.00 | 96 |
| Resorts Digital | $44,867,111.00 | $30,844,754.00 | 45.5 |
| Tropicana | $7,615,894.00 | $10,364,996.00 | -26.5 |
| Total: | $165,711,825.00 | $140,655,053.00 | 17.8 |
Although April’s Internet Wins were lower than March’s, online gambling still generated $158.9 million for the eight licensed operators in April 2023. The results for April 2023 indicate a 16.1% year-over-year growth.
As for year-to-date Internet Wins in New Jersey, the eight licensed online casino providers recorded wins of $620.1 million, a surge of 13.7% compared to $545.4 million generated during the prior year-to-date period.
| 2023 | 2022 | Change % | |
|---|---|---|---|
| Bally’s | $6,678,622.00 | $2,967,824.00 | 125 |
| Borgata | $43,180,552.00 | $39,928,794.00 | 8.1 |
| Caesars Interactive NJ | $8,726,139.00 | $9,086,897.00 | -4 |
| Golden Nugget/ Golden Nugget Online Gaming | $41,652,196.00 | $38,142,387.00 | 9.2 |
| Hard Rock | $5,712,960.00 | $6,530,176.00 | -12.5 |
| Ocean Casino | $4,719,115.00 | $1,677,837.00 | 181.3 |
| Resorts Digital | $41,696,819.00 | $29,136,201.00 | 43.1 |
| Tropicana | $6,570,588.00 | $9,413,282.00 | -30.2 |
| Total: | $158,936,991.00 | $136,883,398.00 | 16.1 |
While New Jersey’s online gaming market continued to show year-over-year growth, in May 2023 the eight online gaming licensees reported lower revenue than in April. Caesars Interactive NJ, Hard Rock, and Tropicana experienced year-over-year declines. Even so, total Internet Wins reached $161.4 million for May 2023, a 14.7% increase over May 2022.
For the year-to-date period, New Jersey’s online casinos reported Internet Wins of $781.5 million, a 14.7% increase compared to $681.4 million for the previous year-to-date period.
| 2023 | 2022 | Change % | |
|---|---|---|---|
| Bally’s | $6,767,140.00 | $3,357,262.00 | 101.6 |
| Borgata | $44,012,713.00 | $42,587,342.00 | 3.3 |
| Caesars Interactive NJ | $8,311,892.00 | $9,660,690.00 | -14 |
| Golden Nugget/ Golden Nugget Online Gaming | $43,467,840.00 | $39,353,881.00 | 10.5 |
| Hard Rock | $5,725,676.00 | $5,781,870.00 | -1 |
| Ocean Casino | $3,428,650.00 | $2,199,468.00 | 55.9 |
| Resorts Digital | $41,680,670.00 | $29,790,063.00 | 39.9 |
| Tropicana | $8,017,343.00 | $8,036,004.00 | -0.2 |
| Total: | $161,411,924.00 | $140,766,580.00 | 14.7 |
Reports for June 2023 show that the internet gaming sector of New Jersey experienced a sequential decline, with Borgata joining Caesars Interactive NJ, Hard Rock, and Tropicana in reduced revenue. Despite lower month-over-month results, the eight licensed brands generated Internet Wins of $149.3 million, a 12.1% increase compared to June 2022.
The eight online casino operators reported year-to-date Internet Wins of $930.8 million, reflecting a 14.3% increase compared to $814.5 million for the previous year-to-date period.
| 2023 | 2022 | Change % | |
|---|---|---|---|
| Bally’s | $6,631,811.00 | $4,076,804.00 | 62.7 |
| Borgata | $39,419,707.00 | $40,542,945.00 | -2.8 |
| Caesars Interactive NJ | $9,036,673.00 | $9,376,577.00 | -3.6 |
| Golden Nugget | $41,766,499.00 | $35,705,464.00 | 17 |
| Hard Rock | $5,524,606.00 | $6,014,254.00 | -8.1 |
| Ocean Casino | $4,847,027.00 | $2,351,737.00 | 106.1 |
| Resorts Digital | $35,624,339.00 | $28,086,670.00 | 26.8 |
| Tropicana | $6,441,942.00 | $6,984,352.00 | -7.8 |
| Total: | $149,292,604.00 | $133,138,803.00 | 12.1 |
July marked an improvement in Internet Wins for the eight licensed online casino operators. The only licensee that reported a year-over-year decline was Caesars Interactive NJ. In July 2023 the eight casinos generated Internet Wins of $155.2 million, a 13.5% increase compared to July 2022.
| 2023 | 2022 | Change % | |
|---|---|---|---|
| Bally’s | $6,829,889.00 | $4,013,463.00 | 70.2 |
| Borgata | $42,995,859.00 | $42,986,001.00 | 0 |
| Caesars Interactive NJ | $8,556,978.00 | $10,924,469.00 | -21.7 |
| Golden Nugget | $39,787,349.00 | $34,529,509.00 | 15.2 |
| Hard Rock | $6,687,917.00 | $5,714,945.00 | 17 |
| Ocean Casino | $4,301,099.00 | $2,739,278.00 | 57 |
| Resorts Digital | $40,570,833.00 | $30,480,354.00 | 33.1 |
| Tropicana | $5,435,131.00 | $5,313,297.00 | 2.3 |
| Total: | $155,165,055.00 | $136,701,316.00 | 13.5 |
Following the trend, the online gaming sector in the Garden State enjoyed further growth in August. Internet Wins reported by the eight licensed operators amounted to $155.3 million, marking an 18.1% year-over-year increase.
For the year-to-date period, Internet Wins reported by the eight licensees and their partners reached $1.3 billion in August 2023, helping the iGaming sector surpass the $1 billion mark.
| 2023 | 2022 | Change % | |
|---|---|---|---|
| Bally’s | $8,207,912.00 | $4,527,787.00 | 81.3 |
| Borgata | $40,237,610.00 | $41,823,848.00 | -3.8 |
| Caesars Interactive NJ | $6,614,107.00 | $8,900,003.00 | -25.7 |
| Golden Nugget | $40,805,342.00 | $31,376,905.00 | 30 |
| Hard Rock | $6,191,431.00 | $5,777,667.00 | 7.2 |
| Ocean Casino | $4,625,343.00 | $2,922,331.00 | 58.3 |
| Resorts Digital | $42,296,775.00 | $30,743,374.00 | 37.6 |
| Tropicana | $6,296,006.00 | $5,366,268.00 | 17.3 |
| Total: | $155,274,526.00 | $131,438,183.00 | 18.1 |
Biggest Contributors to New Jersey’s Online Gaming Revenue
In 2022, New Jersey online casinos hit a record one-month revenue of $150 million, with the milestone reached in December. The eight licensed entities reported December Internet Wins of $151.5 million, reflecting growth of 13.7% compared to $133.2 million for the prior period.
For the year-to-date period, Internet Gaming Wins reported by casinos and their partners amounted to $1.66 billion, indicating a 21.6% increase compared to $1.37 billion for the prior year-to-date period.
Online-only December results for Atlantic City show that Resorts Digital recorded Internet Wins of $40.4 million, marking a 22.7% growth from almost $33 million generated for the same period in 2021. Meanwhile, Caesars Interactive NJ generated wins of $9.6 million, which was 7.9% down from $10.4 million in December 2021.
Borgata continues to be the biggest contributor to New Jersey’s online casino revenue, with the property and its online partners earning almost half a billion dollars ($496.3 million) for the entire year of 2022.
Resorts Digital, led by online casino brands like DraftKings, Barstool, and Resorts, came in second, reporting an all-time high in December 2022. Resorts Digital’s Internet Wins reached $40.4 million, a 22.7% increase from the same period of the previous year. Meanwhile, full-year revenue for the licensee amounted to $393.3 million.
Golden Nugget, which includes online casino brands like BetRivers, FanDuel, and Golden Nugget, reached total gambling revenue of $431.7 million for 2022, ranking second after Borgata.
- Despite Bally’s and Ocean Casino Resort’s online casino brands not ranking as the biggest NJ revenue contributors, in December 2022 they achieved the largest year-over-year growth of 1,407.4%
- Bally’s overall year-over-year growth for 2022 reached an astonishing 2,405%, as Internet Wins in 2022 amounted to $41.8 million, while the 2021 number was merely $1.67 million
- Ocean Casino Resort recorded Internet Wins of $3.52 million in December, indicating a 125% year-over-year growth
| 2023 | 2022 | Change % | |
|---|---|---|---|
| Bally’s | $5,218,793.00 | $346,218.00 | 1407.4 |
| Borgata | $43,706,888.00 | $37,052,103.00 | 18 |
| Caesars Interactive NJ | $9,566,032.00 | $10,391,523.00 | -7.9 |
| Golden Nugget/ Golden Nugget Online Gaming | $37,786,899.00 | $36,006,076.00 | 4.9 |
| Hard Rock | $5,333,620.00 | $4,861,176.00 | 9.7 |
| Ocean Casino | $3,520,633.00 | $1,564,982.00 | 125 |
| Resorts Digital | $40,397,270.00 | $32,930,701.00 | 22.7 |
| Tropicana | $5,925,358.00 | $10,059,227.00 | -41.1 |
| Total: | $151,455,493.00 | $133,212,006.00 | 13.7 |
For January 2023, the two online-only entities reported Internet Wins of $8.3 million for Caesars Interactive NJ (a 17.6% decline from $10.0 million in January 2022) and $40.2 million for Resorts Digital, marking a 21.8% increase from $33.0 million the previous year. The three biggest contributors to overall revenue were Borgata, Golden Nugget, and Resorts Digital.
- In January 2023, Borgata and its online casino brands recorded revenue of $40.8 million, a 4.3% year-over-year increase
- Golden Nugget ranked second with $40.6 million, an 11.3% increase compared to January 2022
- Resorts Digital reported Internet Wins of $40.2 million, a 21.8% growth
- Based on year-over-year growth, the three casino licensees in New Jersey with the biggest increases were Bally’s at 327.1%, Ocean Casino at 106.5%, and Resorts Digital at 21.8%
For February 2023, Internet Gaming Wins reported by casinos and their partners totaled $142.6 million, a 9.7% increase compared to $130.0 million for the prior period. The biggest contributors were again Borgata, Golden Nugget, and Resorts Digital.
Resorts Digital and Caesars Interactive NJ, the two online-only entities, reported February Internet Wins of almost $36 million and $8.3 million, respectively. Resorts Digital posted a 20.3% year-over-year increase, while Caesars Interactive NJ recorded a 17.5% decline.
Brands bringing the Garden State the highest revenue in February 2023 were:
- Borgata with $39.7 million, a 5% year-over-year increase
- Golden Nugget with $36.5 million, a 5.7% increase
- Resorts Digital with almost $36 million, a 20.3% increase
For year-over-year growth, the top three casino licensees in February 2023 were:
- Bally’s with 340.1% growth
- Ocean Casino with 238.6%
- Resorts Digital with 20.3%
The licensed entities reported March 2023 Internet Gaming Wins of $165.7 million, a 17.8% increase compared to $140.7 million for the prior period. Year-to-date revenue was $461.2 million, a 12.9% increase compared to $408.5 million for the prior year-to-date period.
For Internet-only operations, Caesars Interactive NJ reported Internet Wins of $8.4 million, while Resorts Digital recorded Wins of $44.9 million. March results show a 15.2% year-over-year drop for Caesars Interactive NJ and a 45.5% jump for Resorts Digital.
New Jersey’s biggest online revenue contributors in March 2023 remained Borgata, Golden Nugget, and Resorts Digital.
- Resorts Digital led the field with $44.9 million, a 45.5% increase
- Borgata reported $43.9 million, a 6.2% increase
- Golden Nugget followed with $42.7 million, an 11.6% increase
For year-over-year growth, the top three casino companies in March 2023 were:
- Bally’s with 274.6% growth
- Ocean Casino with 96%
- Resorts Digital with 45.5%
New Jersey’s eight casinos and their partners reported Internet Wins of $158.9 million for April 2023, a 16.1% increase compared to $136.9 million for the prior period. Year-to-date Internet Wins were $620.1 million, a 13.7% increase compared to $545.4 million for the prior year-to-date period.
For the two online-only entities, Caesars Interactive NJ and Resorts Digital, April Internet Wins were $8,726,139 and $41,696,819, respectively. Caesars Interactive NJ posted a 4% year-over-year decline, while Resorts Digital marked a 43.1% increase.
Top contributors in April 2023 were:
- Borgata with $43.2 million, an 8.1% increase
- Resorts Digital with $41.7 million, a 43.1% increase
- Golden Nugget with $41.7 million, a 9.2% increase
For year-over-year growth, the three companies with the biggest increases were:
- Ocean Casino with 181.3%
- Bally’s with 125%
- Resorts Digital with 43.1%
New Jersey’s eight casinos and their partners reported Internet Wins of $161.4 million for May 2023, an 18.7% increase compared to $136.0 million for the prior period. Year-to-date Internet Wins were $781.5 million, a 14.7% increase compared to $681.4 million for the prior year-to-date period.
Caesars Interactive NJ and Resorts Digital, operating exclusively online, recorded Internet Wins of $8,311,892 and $41,680,670, respectively. Caesars Interactive NJ experienced a 14% year-over-year decline, while Resorts Digital posted a 39.9% increase.
Entities with the highest revenue in May 2023 were:
- Borgata with $44 million, a 3.3% increase
- Golden Nugget with $43.5 million, a 25.6% increase
- Resorts Digital with $41.7 million, a 39.9% increase
Although not the top revenue contributors, the three licensees with the largest year-over-year growth in May 2023 were:
- Bally’s with 101.6%
- Ocean Casino with 55.9%
- Resorts Digital with 39.9%
For June 2023, New Jersey’s eight licensed operators and their partners reported Internet Wins of $149.3 million, a 12.1% increase compared to $133.1 million for the prior period. Year-to-date Internet Wins were $930.8 million, a 14.3% increase compared to $814.5 million for the prior year-to-date period.
Caesars Interactive NJ and Resorts Digital brought in June Internet Wins of $9,036,673 and $35,624,339, respectively. Caesars Interactive NJ saw a 3.6% decline, while Resorts Digital recorded a 26.8% increase.
During June 2023, the three licensees that generated the most revenue were:
- Golden Nugget with $41.8 million, a 17% increase
- Borgata with $39.4 million, a 2.8% decline
- Resorts Digital with $35.6 million, a 26.8% increase
Comparing year-over-year growth for June:
- Ocean Casino with 106.1%
- Bally’s with 62.7%
- Resorts Digital with 26.8%
July 2023 statistics show Internet Wins of $155.2 million, a 13.5% year-over-year increase compared to $136.7 million in July 2022. Year-to-date Internet Wins were $1.09 billion, a 14.2% increase compared to $951.2 million for the prior year-to-date period.
Caesars Interactive NJ and Resorts Digital reported July Internet Wins of $8,556,978 and $40,570,833, respectively. Caesars Interactive NJ recorded a 21.7% decline, while Resorts Digital posted a 33.1% increase.
The leading operators in July 2023 were:
- Borgata with nearly $43 million, showing almost no change year over year
- Resorts Digital with $40.6 million, a 33.1% increase
- Golden Nugget with $39.8 million, a 15.2% increase
The biggest year-over-year growth in July 2023 was achieved by:
- Bally’s with 70.2%
- Ocean Casino with 57%
- Resorts Digital with 33.1%
For August 2023, the eight licensed operators and their partners reported Internet Wins of $155.3 million, an 18.1% increase compared to $131.5 million for the same period in 2022. Year-to-date Internet Wins were $1.3 billion, a 14.6% increase compared to a little over $1 billion for the prior year-to-date period.
Caesars Interactive NJ and Resorts Digital brought in Internet Wins of $6.6 million and $42.3 million, respectively. Caesars Interactive NJ experienced a 25.7% decline, while Resorts Digital posted a 37.6% increase.
August 2023’s top revenue contributors were:
- Resorts Digital with $42.3 million, a 37.6% increase
- Golden Nugget with $40.8 million, a 30% increase
- Borgata with $40.2 million, a 3.8% decline
Licensees showing the biggest year-over-year growth in August 2023 were:
- Bally’s with 81.3%
- Ocean Casino with 58.3%
- Resorts Digital with 37.6%
At the time of writing, the regulator has published revenue data through August 2023. It is likely that the top three contributors to 2023 revenue will be Borgata, Resorts Digital, and Golden Nugget, while Bally’s, Resorts Digital, and Ocean Casino will probably post the highest year-over-year growth for 2023.
Quarterly Gaming Revenue of New Jersey for 2022
The Net Revenue that New Jersey’s casino industry generated for the first quarter of the fiscal year ended March 2022 amounted to $719.8 million, a 27.4% year-over-year increase. Meanwhile, Gross Operating Profit for that period was $155.6 million, a 63% increase. The contribution of Caesars Interactive NJ, Resorts Digital, and Golden Nugget Online Gaming, the three entities operating under Internet Gaming Permits, amounted to $56.1 million in Net Revenue (4.9% year-over-year growth) and $18.7 million in Gross Operating Profit (12.4% increase).
| Licensee | Net Revenue | Gross Operating Profit (Loss) | ||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | Change | 2022 | 2021 | Change | |
| Caesars Interactive NJ | 23360 | 16865 | 38.50% | 7848 | 4484 | 75.00% |
| Golden Nugget Online Gaming | 20354 | 22977 | -11.40% | 6741 | 7907 | -14.70% |
| Resorts Digital | 12431 | 13695 | -9.20% | 4129 | 4263 | -3.10% |
| Total: | 56145 | 53537 | 4.90% | 18718 | 16654 | 12.4 |
The gaming revenue of New Jersey for the second quarter ended June 30, 2022 amounted to $828.8 million in Net Revenue and $183.6 million in Gross Operating Profit. Compared to the second quarter of the previous year, Net Revenue rose 14.1% from $726.6 million, but Gross Operating Profit fell 0.8% from $185.2 million.
The decline is largely due to Golden Nugget Online Gaming surrendering its Internet Gaming Permit on May 4, 2022, with all Internet gaming and sports betting revenue reported under Golden Nugget starting May 5, 2022.
| Licensee | Net Revenue | Gross Operating Profit (Loss) | ||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | Change | 2022 | 2021 | Change | |
| Caesars Interactive NJ | 20737 | 16563 | 25.20% | 5970 | 4400 | 35.70% |
| Golden Nugget Online Gaming | 8103 | 22883 | N/A | 2526 | 7811 | N/A |
| Resorts Digital | 9955 | 12176 | -18.20% | 1776 | 3549 | -50.00% |
| Total: | 38795 | 51622 | -24.80% | 10272 | 15760 | -34.80% |
For the third quarter ended September 30, 2022, New Jersey’s gambling industry reported Net Revenue of $980.1 million, a 1.3% year-over-year increase. Gross Operating Profit was $269.3 million.
With only two licensees operating under Internet Gaming Permits, Caesars Interactive NJ and Resorts Digital contributed almost $27.1 million in Net Revenue, an 8.3% decline from the previous year. The two entities reported Gross Operating Profit of $9.5 million, a 6.87% year-over-year increase.
| Licensee | Net Revenue | Gross Operating Profit (Loss) | ||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | Change | 2022 | 2021 | Change | |
| Caesars Interactive NJ | 16926 | 17108 | -1.1% | 6306 | 4996 | 26.20% |
| Resorts Digital | 10127 | 12406 | -18.4% | 3165 | 3866 | -18.10% |
| Total: | 27053 | 29514 | -8.30% | 9471 | 8862 | 6.87% |
Caesars Interactive NJ and Resorts Digital remained the only online-only licensees, contributing almost $28.9 million in Net Revenue, a 13.5% year-over-year increase. Their combined Gross Operating Profit for Q4 2022 was $15.7 million, a 159.6% increase.
| Licensee | Net Revenue | Gross Operating Profit (Loss) | ||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | Change | 2022 | 2021 | Change | |
| Caesars Interactive NJ | 19858 | 12615 | 57.40% | 12629 | 2686 | 370.20% |
| Resorts Digital | 9033 | 12844 | -29.70% | 2944 | 3312 | -11.10% |
| Total: | 28891 | 25459 | 13.50% | 15573 | 5998 | 159.60% |
For the calendar year 2022, combining all four quarterly reports yields total Net Revenue of $3.3 billion, a 9.3% increase over the previous year. Casino licensees reported Gross Operating Profit of $731.3 million, a 4.6% decline.
Looking solely at online-only operations, total Net Revenue was $154.3 million and Gross Operating Profit was $57.4 million. Golden Nugget Online Gaming forfeited its Internet license on May 4, 2022, explaining the lower totals compared to 2021.
| Licensee | Net Revenue | Gross Operating Profit (Loss) | ||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | Change | 2022 | 2021 | Change | |
| Caesars Interactive NJ | 80881 | 63151 | 28.10% | 32753 | 16566 | 97.70% |
| Golden Nugget Online Gaming | 28457 | 90903 | N/A | 9267 | 32857 | N/A |
| Resorts Digital | 44939 | 51121 | -12.10% | 15407 | 14990 | 2.80% |
| Total: | 154277 | 205175 | N/A | 57427 | 64413 | N/A |
As online gambling continues to expand and significantly contributes to New Jersey’s gaming industry, results for the first two quarters of 2023 are also promising.
Results for the first quarter ended March 31, 2023 show total Net Revenue of $756.6 million (a 4.6% year-over-year increase) and Gross Operating Profit of $135.4 million (a 14.8% decrease).
For Internet-only operations, totals appear lower than Q1 2022 because Golden Nugget Online Gaming no longer reports under that license. The two remaining licensees posted $30.3 million in Net Revenue, a 49.0% decline. Caesars Interactive NJ and Resorts Digital reported Gross Operating Profit of $14.8 million, a 33.2% drop from the previous year.
| Licensee | Net Revenue | Gross Operating Profit (Loss) | ||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | Change | 2023 | 2022 | Change | |
| Caesars Interactive NJ | 15326 | 23360 | -34.40% | 6809 | 7848 | -13.20% |
| Golden Nugget Online Gaming | – | 20354 | N/A | – | 6741 | N/A |
| Resorts Digital | 15023 | 15824 | -5.10% | 7963 | 7522 | 5.90% |
| Total: | 30349 | 59538 | -49.00% | 14772 | 22111 | -33.20% |
For the online-only licensees, Caesars Interactive NJ and Resorts Digital generated $23.2 million in Net Revenue during Q2 2023, a 40.2% decline year over year. Their Q2 Gross Operating Profit was $7.9 million, a 22.7% decrease.
| Licensee | Net Revenue | Gross Operating Profit (Loss) | ||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | Change | 2023 | 2022 | Change | |
| Caesars Interactive NJ | 15142 | 20737 | -27.00% | 6787 | 5970 | 13.70% |
| Golden Nugget Online Gaming | – | 8103 | N/A | – | 2526 | N/A |
| Resorts Digital | 8072 | 9955 | -18.90% | 1155 | 1776 | -35.00% |
| Total: | 23214 | 38795 | -40.20% | 7942 | 10272 | -22.70% |
Since its legalization in 2013, online gambling and sports betting have become key contributors to New Jersey’s gaming revenue, with Internet Wins increasing every year. According to the Center for Gaming Research at the University of Nevada, in 2014, just one year after legalization, Internet Wins reached $122.9 million, a 1,368.24% increase compared to 2013.
| Year | Total Wins | Change |
|---|---|---|
| 2013 | 8369 | N/A |
| 2014 | 122877 | 1368.24% |
| 2015 | 148880 | 21.16% |
| 2016 | 196709 | 32.13% |
| 2017 | 245606 | 24.86% |
| 2018 | 298700 | 21.26% |
| 2019 | 482695 | 61.60% |
| 2020 | 970338 | 101.03% |
| 2021 | 1366891 | 40.87% |
New Jersey Online Casino Revenue Compared to Other States with Legal Online Gaming
While New Jersey’s online casino sector has grown steadily since legalization, it competes with other states that have also introduced legal online gaming. Results in New Jersey are often cited as an example of the potential growth neighboring states like New York may enjoy if they legalize online casino gaming.
- At the time of writing, the most recent statewide results cover 2022. Based on online casino taxes paid in the four states that have legalized online casino gaming, Pennsylvania led the way with more than $1.3 billion in earnings for 2022.
- Pennsylvania was a standout in tax collected from online casino operations, generating $1.4 billion in tax payments, an increase of more than 20% compared to 2021. The only gambling sector that made more was in-person slot machines.
- All Internet gaming operators in Michigan paid $289.2 million in taxes in 2022. This figure does not include state payments made separately by tribal casinos. The tax on iGaming ranges between 20% and 28% based on yearly adjusted gross receipts.
- New Jersey ranked third with $249.4 million in taxes paid in 2022. The state levies a 15% tax on generated Internet Wins.
- West Virginia collected $86.2 million in taxes from online casino companies in 2022, placing the state fourth. A 15% tax is levied on adjusted gross interactive wagering receipts, with the law capping licenses at five.
Predictions for the Growth of the Online Casino Sector in New Jersey
Despite uncertainty when lawmakers proposed extending online gambling by only two years, the decision to extend legal online gambling in the Garden State for five additional years suggests significant revenue growth in the coming months.
In June 2023 New Jersey was one step away from hitting the $1 billion mark, with year-to-date Internet Wins of $930 million, a 14% jump from the first half of 2022.
In August 2023, online casino revenue was far ahead of the record-setting pace of August 2022. By August 31, online gambling, excluding sports betting, accounted for 31% of the GGR reported by Atlantic City licensees. Meanwhile, the nine land-based casinos accounted for 55.8% of total GGR, the lowest rate since online gambling was legalized 10 years ago. The data show that New Jersey’s gambling industry is slowly relying more on online gaming and sports betting and less on in-person gambling.