New Jersey's online gaming has increased once again this September, gaining a tremendous revenue of $208.1 million. It's a record-breaking revenue win, surpassing analysts' predictions. Meanwhile, Atlantic City casinos experienced a slight decrease during the same month, down by more than 6%.

New Jersey's iGaming sector has reached a new milestone, with online table games and casino slots generating more than $208.1 million in September of 2024. This marked the first time the state's online gaming sector surpassed $200 million in just one month.

A significant milestone

According to the New Jersey Division of Gaming Enforcement, gross gaming revenue from online slots and table games reached $205.9 million in September. Additionally, rake from poker games online contributed $2.2 million, bringing the total iGaming revenue for the month to $208.1 million. This figure represents a 27% increase compared to the same period in 2023, and it shows the ongoing popularity and expansion of online gaming in the state.

James Plousis, chairperson of the New Jersey Casino Control Commission, hailed the achievement, noting that "the ongoing success of internet gaming helped push Atlantic City's total gaming revenue to its highest figure for the month of September in over a decade." While Atlantic City's physical casinos have faced challenges in recent months, the iGaming sector has been instrumental in driving statewide gaming revenue upward.

New Jersey's latest iGaming revenue figures put the state in a league of its own, with only Michigan coming close to similar monthly earnings. Michigan, which also allows online casino gaming, set its own record in March of 2024, generating $215.5 million in online gaming revenue. This figure remains Michigan’s all-time best, surpassing even New Jersey's recent record. Despite Michigan's larger haul, New Jersey's iGaming market continues to grow at a robust pace, drawing in more players and driving higher revenues.

Atlantic City's retail decline

Although New Jersey's online gaming sector experienced substantial growth, Atlantic City's retail casino performance told a different story. After a strong August, where the nine Atlantic City casinos reported nearly a 5% increase, September saw a notable downturn. The DGE reported that retail casino revenue was down 6.5% compared to September of 2023, representing a decline of around $15.9 million.

Slot machines generated a Gross Gaming Revenue of $173.3 million, a 5% drop year-over-year, while table game revenue fell more than 10% to $57.3 million. In total, in-person casino earnings amounted to $230.6 million for the month. Plousis attributed the decline to fewer weekend days in September 2024 compared to the previous year and luckier-than-usual table game players, which reduced casino earnings.

Despite these challenges, Plousis remained optimistic, stating that year-to-date casino win was down slightly compared to last year, but it was still the second-best September result seen in 11 years. He emphasized that overall business in Atlantic City has remained stable throughout the first nine months of 2024.

Sports betting and statewide gaming revenue

In addition to iGaming growth, sports betting also contributed significantly to New Jersey's gaming revenue in September. Combined mobile and retail sports betting operations generated $119.6 million, an 8% increase compared to September 2023. These gains helped bring New Jersey's total gaming revenue for the month to $558.28 million, a 7.1% year-over-year increase and an overall gain of approximately $36.8 million.

However, much of the growth was driven by the online gaming sector, with the brick-and-mortar casinos in Atlantic City continuing to experience challenges in maintaining their revenue levels. While the iGaming sector thrives, many casino operators argue that the online revenue does not necessarily benefit Atlantic City's physical establishments in the same way.

Differing perspectives on revenue

Casino leaders in Atlantic City have voiced concerns that the booming online gaming revenue doesn't translate directly to the resort town's economy. Much of the iGaming and sports betting revenue is shared with third-party vendors, such as DraftKings and FanDuel, which have limited physical investments in Atlantic City. As a result, casino operators argue that the retail numbers provide a more accurate picture of the industry's health.

Through the first three quarters of 2024, for example, in-person casino revenue in Atlantic City is down nearly 1%, totaling $2.15 billion. Five of the nine casinos - Caesars, Bally's, Resorts, Tropicana, and Harrah's - reported lower revenue from in-person gambling compared to last year. Ocean and Borgata saw marginal growth, with GGR increasing by under 1%, while Golden Nugget experienced a 2.6% increase. Hard Rock, however, emerged as a standout, with its GGR improving 8.3% year-over-year through September, continuing to gain market share.