The legalization of online gambling in New Jersey was realized in November 2013. This made The Garden State one of the first states in the US to regulate and legalize online casino gambling. The different forms of online gambling, which are legally allowed in New Jersey include various types of games such as online slots, table games like blackjack and roulette, poker, sports betting, and even live dealer games where players can interact with real dealers through live streaming.
The Division of Gaming Enforcement (DGE) in New Jersey oversees and regulates online gambling activities in New Jersey, ensuring that all online casinos and operators comply with the state’s strict gaming laws and standards.
To stay abreast with the changes in the gaming industry in New Jersey, many of the 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. What is more, 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 and 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 the regulations of the sector extremely seriously. Licensing and regulating online casinos in Atlantic City falls under the remit of the New Jersey Division of Gaming Enforcement (DGE). It ensures that operators meet strict standards for fairness, security, and responsible gambling. In addition to that, to ensure 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 keep their regular patrons is to offer various casino incentives. Online casinos in the state provide their members with promotions, bonuses, and loyalty programs to attract and retain players. These can include match bonuses, free spins, cashbacks, and rewards for regular play.
Online Casino Industry in New Jersey
With the Garden State being one of the firsts to legalize online gambling, players residing in Atlantic City were among the first casino fans who were able 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 who 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 towards the cost of $400,00 for the actual license. Approved applicants must also pay a $250,000 renewal fee aside from the annual $250,000 fee applied to the cost of operating an online casino in New Jersey.
- All operators who have obtained Internet Gaming permit must pay a tax rate of 15% of the gross gaming revenue they have generated. 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 has been extended for another 5 years
The extension of online gambling in New Jersey with only five years might seem harsh as this is exactly the half of the original 10-year period, which was given to the state’s online gambling when it was first legalized in 2013. However, five years sounds a lot more satisfying compared to the original suggestion to extend the Garden State’s legal online gambling with just two years. Luckily, as this proposal was faced with a lot of criticism and concerns, New Jersey lawmakers settled for an extension of 5 years.
New Jersey Internet Gambling Revenue by Months
One sure way to notice the effect of the online casino sector on the overall New Jersey Gambling industry is to take a look at the revenue numbers by month. While the whole Net Revenue and Gross Operating Profit (Loss) digits include land-based gambling and sports betting, we can see that online gambling has also contributed to the increasing revenue, even helping the state to go back 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 the results of 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 can see that the New Jersey online casino licensees have marked 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 the data provided by the New Jersey Office of Attorney General, in March 2023, the eight licensed online casino operators of the Garden State generated Internet Wins of $165.7 million. This number continues the trend of growth, marking a 17.8% year-over-year increase compared to the Internet Wins of 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 |
While the results for April show Internet Wins lower than the ones generated the previous month, in April 2023, online gambling generated a total of Internet Wins of $158.9 million for the eight operators licensed to provide online gambling services in New Jersey. The results for April 2023 indicate a 16.1% year-over-year growth.
As for the year-to-date Internet Wins in New Jersey, the eight licensed online casino providers recorded wins of $620.1 million, indicating a surge of 13.7% when compared to $545.4 million generated for 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 the online gaming market in New Jersey continued to show year-over-year growth, in May 2023, the market’s eight online gaming licensees reported lower online gaming revenue than the previous month. The operators who experienced a year-over-year decline in Internet Wins included Caesars Interactive NJ, Hard Rock, and Tropicana. Despite that, the total Internet Wins for the Garden State reached $161.4 million for May 2023, marking a 14.7% growth compared to the numbers of May 2022.
For the year-to-date period, New Jersey’s online casinos reported Internet Wins of $$781.5 million, recording a 14.7% increase compared to $681.4 million generated 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 |
The reports for June 2023 show that the internet gaming sector of New Jersey continued to experience decline, with Borgata joining Caesars Interactive NJ, Hard Rock, and Tropicana in the reduced online gaming revenue trend. Despite June showing worse results than May, the eight licensed online casino brands in New Jersey managed to generate Internet Wins of $149.3 million, indicating a 12.1% increase compared to the wins in June 2022.
The eight online casino operators reported year-to-date Internet Wins of $930.8 million, reflecting an increase of 14.3% 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 generated by the eight licensed online casino operators in New Jersey. The only licensee that reported year-over-year Internet Win decline was Caesars Interactive NJ. In July 2023, the eight casinos licensed to operate online generated Internet Wins of $155.2 million, indicating a 13.5% increase compared to Internet Wins for 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 continued to enjoy an increase in revenue in the month of August. Internet Win reported by the eight licensed online casino operators and their partners in New Jersey amounted to $155.3 million, marking a 18.1% year-over-year growth.
As far as year-to-date results are concerned, the Internet Win reported by the eight casino licensees and their partners was $1.3 billion in July 2023, which helped the iGaming sector to finally surpass the $1 billion mark. This showed a 14.6% increase when compared to the results for the same period of the previous year.
| 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, the New Jersey online casinos hit record one-month revenue of $150 million, with the record-breaking milestone reached in December. The eight licensed online gaming 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 Win 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 Resort Digital gathered 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 millionin December 2021.
Borgata continues to be the biggest contributor for the New Jersey online casino revenue, with the property and its online partners earning almost a half-billion ($496.3 million) for the entire year of 2022.
Resorts Digital, which is led by online casino brands like DraftKings, Barstool, and Resorts comes in second place, with the entity reporting an all-time high in December 2022. Resorts Digital’s Internet Wins reached $40.4 million, marking a 22.7% increase from the same period of the previous year. Meanwhile, the full-year revenue of the online casino licensee amounted to $393.3 million.
Another brand that came close to the aforementioned online casino licensees in December 2022 was Golden Nugget, which reported Internet Wins of $37.8 million, indicating a 4.9% year-over-year growth. The entity, which includes online casino brands like BetRivers, FanDuel, and Golden Nugget reached a total gambling revenue of $431.7 million for the entire year of 2022, ranking second after Borgata.
- Despite Bally’s and Ocean Casino Resort’s online casino brands not ranking as the biggest NJ online casino revenue contributors, in December 2022, they reached the biggest year-over-year growth of 1,407.4%
- The overall year-over-year growth of Bally for the entire 2022 reached the 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 marked 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 the month of January 2023, the two online-only entities scored internet wins of $8,3 million for Caesars Interactive NJ (17.6% deline 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. Meanwhile, the three biggest contributors to the overall online casino revenue in the state were Borgata, Golden Nugget, and Resorts Digital.
- In January 2023, Borgata and its online casino brands recorded online casino revenue of $40.8 million, marking a 4.3% year-over-year growth
- Golden Nugget came in second place in January 2023, recording online casino revenue of $40.6 million, indicating an 11.3% increase compared to January 2022
- Resorts Digital marked a 21.8% growth in January 2023, recording Internet Wins of $40.2 million
- Based on the year-over-year growth, the three casino licensees in New Jersey who showed the biggest increase include Bally’s with 327.1%, Ocean Casino with 106.5%, and Resorts Digital with 21.8%
For the month of February 2023, Internet Gaming Win reported by casinos and their partners was $142.6 million, reflecting growth of 9.7% compared to $130.0 million for the prior period. The biggest contributors for February’s revenue were yet again Borgata, Golden Nugget, and Resorts Digital.
Resorts Digital and Caesars Interactive NJ, which are the two online-only gaming entities, reported February internet wins of almost $36 million and $8,3 million respectively. The former reported a 20.3% increase year-over-year, while the latter recorded a 17.5% decline from the 2022 results.
When it comes to the brands bringing the Garden State the highest online casino revenue for February 2023, we have:
- Borgata with Internet Win of $39.7 million, marking a 5% year-over-year increase
- Golden Nugget with online casino revenue of $36.5 million, indicating a 5.7% increase compared to results of the previous year
- Resorts Digital with Internet Win of almost $36 million, reflecting a 20.3% year-over-year growth
As far as year-over-year growth goes, the top three casino licensees that enjoyed the biggest increase in February 2023 include:
- Bally’s with 340.1% year-over-year revenue growth
- Ocean Casino with a 238.6% increase in year-over-year revenue
- Resorts Digital with online casino revenue growth of 20.3% compared to February 2022
The licensed online casino entities of New Jеrsey reported March 2023 Internet Gaming Wins of $165.7 million, reflecting growth of 17.8% compared to $140.7 million for the prior period. For the year-to-date period, online gaming revenue reported by casinos and their partners was $461.2 million, reflecting a 12.9% surge compared to $408.5 million for the prior year-to-date period.
As for the internet-only gaming operations in New Jersey, Caesars Interactive NJ reported internet wins of $8.4 million and Resorts Digital recorded online wins of $44.9 million. The February results show a 15.2% year-over-year drop for Caesars Interactive NJ and a 45.5% jump for Resorts Digital compared to the numbers in February 2022.
The biggest online casino revenue contributors for New Jersey in March 2023 continued to be Borgata, Golden Nugget, and Resorts Digital.
- Resorts Digital came first in the race, recording online casino revenue of $44.9 million, indicating growth of 45.5%
- Borgata reported Internet Win of $43.9 million for March 2023, recording a 6.2% increase compared to March 2022
- With Internet Win of $42.7 million (11.6% increase), in March 2023, Golden Nugget become the third biggest contributor for New Jersey’s online casino revenue
As far as year-over-year growth goes, the top three casino companies in New Jersey for March 2023 included:
- Bally’s with a 274.6% growth compared to the same period of the previous year
- Ocean Casino with a 96% increase year-over-year
- Resorts Digital with a 45.5% growth compared to March 2022
The New Jersey casino entities and their online casino partners have recorded Internet Gaming Win of $158.9 million for April 2023. This number reflects growth of 16.1% compared to $136.9 million for the prior period. For the year-to-date period, Internet Gaming Win reported by casinos and their partners was $620.1 million, reflecting growth of 13.7% compared to $545.4 million for the prior year-to-date period.
As for the two entities, which operate only online, Caesars Interactive NJ and Resorts Digital, the first one recorded internet wins for April 2023 of $8,726,139 and the second one marked internet wins for that month of $41,696,819. Considering the results for the same period of the previous year, Caesars Interactive NJ recorded a 4% year-over-year decline, while Resorts Digital marked a 43.1% increase compared to April 2022.
The top biggest contributors for the Garden State’s online gaming revenue include:
- Borgata with online gaming revenue of $43.2 million, marking a 8.1% year-over-year growth
- Golden Nugget and Resorts Digital were competing for the second place, with each one of them generating online casino wins of around $41.7 million for April 2023. Resorts Digital, however, had slightly bigger revenue, marking a 43.1% year-over-year growth
If we take into consideration the year-over-year growth factor, the three casino companies, which had the biggest increase in revenue include:
- Ocean Casino, which marked a 181.3% year-over-year revenue growth
- Bally’s with a 125% increase for April 2023 compared to April 2022
- Resorts Digital with a 43.1% year-over-year increase in April revenue
New Jersey’s eight casinos and their partners reported Internet Win of $161.4 million for May 2023, reflecting growth of 18.7% compared to $136.0 million for the prior period. For the year-to-date period, Internet Gaming Win reported by online casino licensees amounted to $781.5 million, reflecting growth of 14.7% compared to $681.4 million for the prior year-to-date period.
The two companies operating exclusively online in New Jersey, Caesars Interactive NJ and Resorts Digital, have recorded internet wins for May 2023 of $8,311,892 and $41,680,670, respectively. When we compare the results to the May results of 2022, we can see that Caesars Interactive NJ experienced a 14% year-over-year decline, while Resorts Digital marked a 39.9% year-over-year increase.
The entities which experienced the biggest online casino revenue in May 2023 include:
- Borgata with online gaming revenue of $44 million, marking a 3.3% year-over-year increase
- Golden Nugget with Internet Win for May 2023 of $43.5 million, recording a 25.6% year-over-year jump in revenue
- Resorts Digital, which recorded May 2023 Internet Wins of $41.7 million, indicating a 39.9% growth
Despite not ranking as the top contributors with the biggest online casino revenue in May 2023, the three online casino licensees that reached the biggest year-over-year growth in May 2023 include:
- Bally’s with year-over-year May growth of 101.6%
- Ocean Casino with a 55.9% revenue growth compared to May 2022
- Resorts Digital with a 33.9% year-over-year growth in online casino revenue
For the month of June 2023, the Garden State’s eight licensed casino operators and their online casino partners reported Internet Gaming Wins of $149.3 million, reflecting growth of 12.1% compared to $133.1 million for the prior period. For the year-to-date period, Internet Gaming Win reported by casinos and their partners was $930.8 million, reflecting growth of 14.3% compared to $814.5 million for the prior year-to-date period.
As the two online-only operating entities in New Jersey, Caesars Interactive NJ and Resorts Digital have brought the state June internet wins of $9,036,673 and $35,624,339 , respectively. When compared to the June numbers for 2022, Caesars Interactive NJ has experienced a 3.6% decline, while Resorts Digital has scored a 26.8% increase year over year.
During June 2023, the three casino licensees who managed to bring New Jersey the highest revenue results included:
- Golden Nugget, which reported online casino revenue of $41.8 million, reflecting a 17% year-over-year growth
- Borgata with online casino revenue of $39.4 million, which not only did not generate the most in the sector, but also reported a 2.8% year-over-year decline
- Resorts Digital, which brought the state of New Jersey Internet Wins of $35.6 million, marking a 26.8% year-over-year increase
When we compare the year-over-year growth between the revenue of casinos in June 2023 and June 2022, we get a different top-three New Jersey casino ranking. The three online casino licensees with the biggest year-over-year gaming revenue growth include:
- Ocean Casino with an year-over-year growth of 106.1%
- Bally’s whose June online casino revenue marked a 62.7% year-over-year growth
- Resorts Digital with a 26.8% year-over-year growth in Internet Wins
The July 2023 revenue statistics for the casino operators licensed to offer online casino services in New Jersey show Internet Gaming Wins of $155.2 million. Compared to the results of $136.7 million for July 2022, the industry marked a 13.5% year-over-year growth.. For the year-to-date period, Internet Gaming Win reported by casinos and their partners was $1.09 billion, indicating a14.2% increase compared to $951.2 million for the prior year-to-date period.
Caesars Interactive NJ and Resorts Digital, which are the two casinos that operate only online in New Jersey, have reported internet wins for the month of July of $8,556,978 and $40,570,833, respectively. When comparing these numbers to the results for July 2022, we see that Caesars Interactive NJ recorded a 21.7% year-over-year decline in wins, while Resorts Digital’s wins marked a 33.1% year-over-year growth.
The leading online casino operators based on revenue remained the same in July 2023, with Borgata restoring its first place in the list of licensees generating the highest online casino revenue. The three top positions for July 2023 include:
- Borgata with Internet Wins amounting to almost $43 million, marking almost no year-over-year growth due to similar revenue for July 2022
- Resorts Digital with online casino revenue of $40.6 million, indicating growth of 33.1%
- Golden Nugget, which reported Internet Win of $39.8 million for July 2023, marking a 15.2% growth
Despite Borgata, Resorts Digital, and Golden Nugget being the top Jul performers when it comes to total Internet Win, the biggest year-over-year online casino revenue growth was achieved by other brands:
- Bally’s July 2023 Internet Wins marked a 70.2% year-over-year growth
- Ocean Casino is another brand that scored a great year-over-year online casino revenue growth of 57%
- The third online casino licensee that scored high year-over-year growth in July 2023 was Resorts Digital, scoring a 33.1% increase
For the month of August 2023, the eight licensed casino operators and their online casino partners reported Internet Gaming Wins of $155.3 million, reflecting a 18.1% increase compared to $131.5 million for the same period of 2022. For the year-to-date period, Internet Gaming Win reported by casinos and their partners was $1.3 billion, reflecting growth of 14.6% compared to a little over $1 billion for the prior year-to-date period.
As the two online-only operating entities in New Jersey, Caesars Interactive NJ and Resorts Digital have brought the state Internet Wins of $6.6 million and $42.3 million for the month of August, respectively. When compared to the numbers for August 2022, Caesars Interactive NJ has experienced a 25.7% slump, while Resorts Digital has scored a 37.6% increase year over year.
During June 2023, the three casino licensees that brought New Jersey the highest revenue results included:
- Resorts Digital with online gaming revenue of $42.3 million, reflecting a 37.6% year-over-year growth compared to $30.7 million in August 2022
- Golden Nugget reporting Internet Wins of $40.8 million, showing a 30% increase compared to August 2022 ($31.4 million)
- Borgata with online casino revenue of $40.2 million, showing a slight decline of 3.8% compared to $41.8 million in August 2022
As for the casino licensees that showed the biggest year-over-year growth in August 2023, we have:
- Bally’s with a revenue growth of 81.3% when compared to the results from August 2022
- Ocean Casino, which reached a 58.3% year-over-year online casino revenue growth in August 2023
- Resorts Digital, which reported revenue of $42.3 million for August 2023, reflecting a 37.6% year-over-year growth
At the moment of writing these statistics, the state’s regulator has published official revenue data up until August 2023. That said, it is believe that the top three contributors for the high online casino revenue for the entire 2023 year will most likely be Borgata, Resorts Digital, and Golden Nugget, while Bally’s, Resorts Digital, and Ocean Casino will most likely remain the online casino licensees with the highest year-over-year growth for the entire 12-month period of 2023.
Quarterly Gaming Revenue of New Jersey for 2022
The Net Revenue that the casino industry of NJ generated for the 1st Quarter of the fiscal year ended March 2022 amounted to $719.8 million, marking a 27.4% year-over-year growth. Meanwhile, the Gross Operating Profit for that period was $155.6 million, marking a 63% growth. The contribution of Caesars Interactive NJ, Resorts Digital, and Golden Nugget Online Gaming, which are the three state entities operating under Internet Gaming Permits, amounted to $56.1million of Net Revenue (4.9% year-over-year growth) and $18.7 million 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 2nd quarter ended June 30, 2022 amounted to $828.8 million Net Revenue and $183.6 million Gross Operating Profit. Compared to the results for the second quarter of the previous year, the state’s Net Revenue has surged 14.1% from $726.6 million, but the state also recorded a 0.8% drop compared to the previous year’s result of $185.2 million.
The drastic changes in the revenue generated from the three online gaming licensees, however, is due to Golden Nugget Online Gaming surrendering its Internet Gaming Permit on May 4, 2022, with all Internet gaming and sports betting revenue being 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 of the year ended September 30, 2022, New Jersey’s gambling industry reported Net Revenue of $980.1 million, which indicated a 1.3% year-over-year increase. Meanwhile, the Gross Operating Profit that casino licensees reported for the Q3 of 2022 was $269.3 million.
With only two licensees operating under special Internet Gaming Permits, the online-only gaming contribution of Caesars Interactive NJ and Resorts Digital amounted to almost $27.1 million of Net Revenue, recording a 8.3% decline compared to results from the previous year. Meanwhile, the two online-only operating entities reported Gross Operating Profit for Q3 of $9.5 million, indicating 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 two licensees operating only online, contributing to the sector with total Net Revenue of almost $289 million, indicating a 13.5% year-over-year growth. The combined Gross Operating Profit of the two licensees for the Q4 of 2022 amounted to $155.7 million, expressing a 159.6% year-over-year 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, when we combine the numbers from the four quarterly-based reports, we got the results of a total Net Revenue for the state of New Jersey of $3.3 billion, a 9.3% surge from the previous calendar year. Meanwhile, the casino licensees in the state reported a twelve-month Gross Operating Profit of $731.3 million, indicating a 4.6% decline compared to the previous year.
If we take a look at the numbers generated solely from the three licensees, which were contributing to the whole gaming revenue with their online-only operations, we got total Net Revenue of $154.3 million and a twelve-month Gross Operating Profit of $57.4 million. Of course, we should take into account that Golden Nugget Online Gaming forfeited its Internet license permit on May 4, 2022, with online gaming and sports betting revenue being reported under Golden Nugget starting May 5, 2022. This is the reason for significantly lower amounts at the end of 2022 than 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 fiercely contributes to the growth of the overall gaming industry in New Jersey, results for the first two quarters of 2023 are also promising.
Results for the 1st quarter of the fiscal year ended March 31, 2023 show total Net Revenue of $756.6 million (4.6% year-over-year increase) and Gross Operating Profit of $135.4 million (14.8% year-over-year decrease).
As for the contribution of internet-only operations, it is important to say that the results of Q1 2023 seem lower than those of Q1 2022 due to the fact that Golden Nugget Online Gaming was still reporting revenue during that period of the previous year but is no longer reporting its online gaming and sports betting revenue under that licensee. That said, the total Net Revenue of internet-only operating licensees for Q1 2023 was $30.3 million, a 49.0% decline compared to the previous year. Meanwhile, Caesars Interactive NJ and Resorts Digital reported Gross Operating Profit of $14.8 million, a 33.2% drop considering the results of the previous year, which included Golden Nugget Online Gaming.
| 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% | 14.772 | 22111 | -33.20% |
As for the contribution of licensees who operate only online, for the Q2 period of 2023, Caesars Interactive NJ and Resorts Digital brought the state total Net Revenue of $23.2 million, reflecting a 40.2% decline compared to the same period the previous year. The Q2 Gross Operating Profit that the two entities reported amounted to the total of $7.9 million, reflecting a 22.7% decrease compared to the last year when some of Golden Nugget Online Gaming’s profits were also considered.
| 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 in New Jersey has become a key contributor to the state’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 the state of New Jersey had legalized online gambling, Internet wins reached $122.9 million, marking a 1368.24% growth compared to the results of 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 the online casino sector in New Jersey is enjoying a constant increase since its legalization in 2013, it is in a competition with other states, which have also introduced legal online gaming. In fact, results in New Jersey are constantly given as an example of the potential growth that other neighboring states like New York may enjoy if they introduce legal online casino gaming.
- At the moment of writing these statistics and facts, the most recent online casino earnings in different states include the ones generated for the entire year of 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 earnings for 2022.
- The state of Pennsylvania was a standout in terms of tax collected from online casino operations, generating $1,4 billion in tax payments. This number marked an increase of over 20% compared to 2021 when tax revenue amounted to $1,1billion. The only other gambling sector that made more was in-person slot machines.
- In total, all internet gaming operators in Michigan paid $289.2 million in taxes in 2022. It should be noted that these almost $290 million of earnings do not include the internet gaming state payments made separately by tribal casinos. The tax on iGaming ranges between 20% and 28% based on yearly adjusted gross receipts totals.
- New Jersey comes close third, following Michigan with a total of online casino operations of $ 249.4 million paid in taxes in 2022. The state’s tax requirement for online casino licensees operating in the Garden State is 15% on generated Internet Wins.
- The total tax collected by West Virginian online casino companies for the year 2022 amounted to $86.2 million, placing the state in fourth place. A tax of 15% is levied on West Virginian operators, calculated on their adjusted gross interactive wagering receipts. The current law has capped the interactive gaming licenses in the states to a maximum of five.
Predictions for the Growth of the Online Casino Sector in New Jersey
Despite the slight uncertainty surrounding online gambling in New Jersey when it was proposed to extend the legitimacy of this industry by only two years, the latest decision of extending legal online gambling in the Garden State for additional five years predicts a huge surge in online casino revenue for the upcoming months as well.
Just in June, 2023, the state of New Jersey was one step away from hitting the $1 billion mark, with year-to-date Internet Win revenue amounting to $930 million. This marked a 14% jump from the results for the first half of 2022.
In August 2023, the Garden State reported online casino revenue, which was way ahead of the record-setting rate marked in August 2022. Numbers up until the year ended August 31, online gambling in New Jersey, excluding sports betting, accounted for 31% of the GGR reported by licensees in Atlantic City. Meanwhile, the state’s nine casinos offering land-based gambling accounted for 55.8% of the total GGR, which is the lowest rate since online gambling was legalized in New Jersey 10 years ago. It is clear that the overall gambling industry in New Jersey is slowly starting to rely more on online gaming and sports betting and less on in-person gambling.