New Jersey Shines Light On Online Gaming Market With Detailed Revenue Reporting

Erik Gibbs

A mobile phone displaying on online roulette table

The New Jersey Division of Gaming Enforcement (DGE) is ushering in a new era of transparency for the state’s gaming industry. Starting with the revenue report for March 2024, which is expected to arrive on April 16, the DGE will provide a much more granular breakdown of online operator performance. This shift will allow for a clearer picture of how individual companies are faring within the thriving New Jersey online gaming and sports betting markets.

Previously, the DGE reported online casino and sports betting revenue figures consolidated by the land-based casino partner holding the license. This approach grouped all online “skins” – the individual online brands affiliated with a single license – under one umbrella.

There are nine master licenses controlled by the nine casinos in Atlantic City, each of which is able to launch up to five skins for a total of 45. Currently, according to DGE data, there are 31 skins in use.

This made it difficult, if not impossible, to discern the specific performance of each online operator. The DGE’s new reporting format aims to rectify this by breaking down revenue by individual skin. This will provide valuable insights into market share distribution, operator strengths and weaknesses, and overall industry trends. It’s also expected to significantly increase transparency within the New Jersey online gaming landscape.

A look back: NJ’s booming online gaming market

In 2023, the gambling industry in New Jersey, along with its online partners, experienced a significant 11% increase in revenue, reaching a record-breaking $5.77 billion. Internet gambling and sports betting contributed significantly to this figure, accounting for nearly 46% of the total revenue, amounting to over $1.9 billion and over $1 billion, respectively.

Interestingly, in-person gambling only constituted around half of the total gaming revenue for the state during the same period. While Atlantic City casinos collectively earned $2.8 billion from in-person gamblers, surpassing pre-COVID-19 levels, the majority of this revenue stemmed from the three leading casinos in the city, each of which exceeded their 2019 results.

Here’s a glimpse into the state’s recent online gaming revenue performance, based on the previous consolidated reporting format:

  • Q2 2023: The online gaming industry in New Jersey generated $427 million in revenue, reflecting a steady upward trend;
  • Q3 2023: Online gaming revenue hit $451 million, marking a 9% year-over-year growth;
  • Q4 2023: Total online gaming revenue reached $482 million, representing a 12% increase over Q4 2022

The detailed breakdown for March 2024 and beyond will offer a much more nuanced understanding of how these impressive figures translate to individual operator performance.

DGE to reissue previous reports

In a move demonstrating further commitment to transparency, the DGE has announced it will reissue its January and February 2024 online gaming revenue reports. These reports will be updated to include the new, detailed operator-by-operator breakdown. This retroactive approach ensures a comprehensive picture of the market’s performance since the beginning of the year.

The increased transparency is expected to benefit various stakeholders within the New Jersey online gaming ecosystem, including prospective market entrants. Investors will gain valuable insights for informed decision-making. Consumers will have access to more information when choosing between online gaming platforms. Ultimately, the detailed reporting format is likely to foster a more competitive and dynamic online gaming market in New Jersey.