In New Jersey, the latest revenue figures are raising concerns in some quarters. Several reports in recent times have emphasized that iGaming can incentivize better results in land-based casinos. However, many others believe that they cannibalize land-based casinos. The latest figures seem to corroborate this view and it’s worth taking a closer look. In 2024, New Jersey’s gambling revenue total reached almost $5.7 billion. What helped significantly with this growth was iGaming and sports betting.
Revenue from in-person gambling declines
Online gaming brought in almost $2.4 billion last year, which was up over 24% from the previous year. There are many advantages to online casinos that make them so popular with players.
For example, players playing casino games at a NJ online casino have the convenience of being able to play at any time and from anywhere. They can use a mobile device and a casino app thanks to the mobile friendliness of many games today. Sports betting also did very well in 2024. Despite revenue-breaking figures in these fast-growing segments, in-person gambling in the Atlantic City casinos saw challenges.
Drop in revenue at Atlantic City casinos
Atlantic City is experiencing some ongoing issues as a destination for tourists and gambling. Those wanting to set up a business there today would probably think twice. Even the revenue from non-gambling activities that were traditionally stronger in the summer months saw a decline in 2024.
Various factors, including severe beach erosion, contributed to a downturn in tourism in the summer months. There were no major beachfront events during the year, such as the annual air show and large-scale beach concerts. Higher labor costs, overheads, and inflation also contributed to the drop in revenue.
Collaboration between all affected parties could bring solutions. There are hopes that Atlantic City could become a leading tourist destination once again.
The future of online gambling
By allowing online gambling from an early stage, New Jersey’s gambling market has seen benefits. The US gambling market forecast for online gambling is that it is projected to grow at a CAGR of 12.3% from 2024 to 2030. Some advanced technologies like AI and chatbots are helping to drive growth.
The use of AI helps with predicting player behavior and personalizing offerings to them. This is helping to increase player retention. The use of chatbots means players can quickly get answers to common questions. They also offer information across diverse subjects which leads to more customer satisfaction.
Technology advances lead to better infrastructure, more mobile-friendliness, and secure payment systems. This increases the confidence of bettors and helps with retaining them.
Augmented Reality (AR) and Virtual Reality (VR) are leading to more immersive player experiences, and the use of these technologies is only likely to increase in the future.
A few online casinos are beginning to use blockchain technology. When gambling services are based on blockchain, this decentralizes operations. This has many benefits such as creating more transparency and ensuring fairness of games. It also offers privacy and speed.
Why isn’t iGaming legal in more states?
As iGaming is so popular and US states benefit from the tax revenue, it’s surprising that it isn’t legal in most states. This expansion is likely to happen, and this could be when states are under economic pressure.
Most states already allow sports betting, so it makes sense to legalize iGaming next. It might be good to look a little more closely at the effect of iGaming on land-based casinos because their revenue is on the decline. This is happening not only in New Jersey but in Pennsylvania and Michigan, too.