The Top New Jersey Gambling Storylines That Will Shape 2026

New Jersey gambling heads into 2026 with major storylines, including iGaming growth, prediction markets, Atlantic City and sports betting debates.

New Jersey gambling in 2025 made all sorts of headlines in each vertical. That’s what makes the Garden State such a rich gambling state.

New Jersey has all types of gaming, which include online casinos, online sportsbooks and Atlantic City casinos. Each are important to the state’s success.

All three verticals evolved in some way in 2025 and are likely to make even bigger headlines in 2026. PlayNJ is going to look ahead at what could be the top stories of 2026.

iGaming growth

New Jersey platforms have set a new standard when it comes to online casino revenue. Through 11 months of 2025, revenue has already surpassed all of 2024’s total.

Operators have already generated $2.64 billion in revenue this year, which represents a 22.2% year-over-year increase compared to $2.16 billion through November 2024.

The New Jersey Division of Gaming Enforcement (DGE) has not released December totals as of yet. The state is projected to produce $2.88 billion for all of 2025. That would be a 20.5% increase from 2024.

The big question for 2026 will be: Can online platforms continue to grow at a 20% rate or higher?

Future of prediction markets

Prediction markets have taken the country by storm and entered most states, including those with sports wagering. Consumers can purchase “yes” or “no” sports contracts, which are federally regulated through the Commodity Futures Trading Commission.

Operators such as Kalshi and Robinhood consider the offering more as a financial investment and not gambling. That has led to a legal dispute between the DGE and Kalshi.

Kalshi won a preliminary injunction earlier in 2025 to continue operating in the state. The DGE has appealed in June, which could take up to a year to decide.

In the appeal, the DGE argued that CFTC was not designed to include sports wagering. It said:

“There are other provisions in federal law, outside of PASPA, that further demonstrate the federal policy of disfavoring sports-gambling. Indeed, in enacting PASPA, Congress explicitly noted that the law was ‘complementary to and consistent with [then] current Federal law’ with respect to sports wagering.

“Congress has, for example, . . . barred the placement of a sports gambling bet through wire communications to or from a place where such bets are illegal, . . . , and proscribed interstate transportation of means for carrying out sports lotteries.”

The New Jersey gambling scene isn’t the only state battling prediction markets. A decision in the Garden State could have a domino effect for other markets, including Pennsylvania.

Smoking in Atlantic City properties

Atlantic City casino employees have been trying to close the loophole of the New Jersey Smoke-Free Air Act, which went into effect in 2006. Casinos remain exempt from the law.

Casino workers are subject to smoking across gaming floors in Atlantic City. They presented their side during an appellate court hearing earlier this month, which came after a New Jersey Superior Court judge ruled in favor of Atlantic City casinos in August 2024.

Nancy Erika Smith, the lawyer representing employees, said in a statement earlier this month:

“Casino workers are expected to clock in to work every day despite inevitably facing a toxic environment that could cause countless health issues, including cancer, heart disease, and asthma.

“We’re asking the court to find the exemption in New Jersey’s Smoke-Free Air Act unconstitutional and void it immediately. We hope this case will serve as a precedent for casinos across the country to close their smoking loopholes and stop poisoning their workers.”

NJ Gov. Phil Murphy has always supported a ban, should a bill reach his desk. However, it never did.

New Jersey is ready to welcome new Gov. Mikie Sherrill, who was elected in November. She doesn’t appear to be in favor of a full ban of smoking inside properties.

This story will surely continue in 2026.

Progress on downstate New York casinos

New York has awarded downstate casino licenses to Bally’s, Hard Rock and Resorts World. Having three world-class gambling establishments in New York City is likely to impact Atlantic City.

The properties won’t be up and running in 2026, however, news of plans and construction are going to progress throughout the year. Each property is expected to have thousands of slot machines, hundreds of table games, lodging for guests, and several dining options.

While it’ll certainly be competition, Jane Bokunewicz, faculty director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism at Stockton University School of Business in Galloway, N.J., is taking a different angle. She said it could be an opportunity for Atlantic City:

“The addition of three integrated resort-style properties in the region will, at least in the short term, increase competitive pressure on Atlantic City operators, but hopefully, the city will be able to distinguish itself in the long term. While New York’s properties will soon boast many of the same dining and entertainment amenities that have long been available in Atlantic City, they will never have the beach and historic Boardwalk.

“The new properties will likely attract international visitors and audiences that have not considered Atlantic City before. This could actually be a plus for Atlantic City. Since two of the operators will have interests in both New York and Atlantic City, they may seek to leverage interest in the new properties to bring greater attention to Atlantic City.”

College props ban coming?

There has been momentum across the country to ban prop betting in both the professional and college levels of sports. In New Jersey, bettors can wager on out-of-state college props.

There have been numerous harassment incidents brought to the surface in 2025, which has led to the effort. In 2025, Sen. Kristin Corrado (R-Passaic) introduced S-3080, a bill to ban props on sports wagering sites.

The bill moved through the Senate in 2025 but then stalled. It remains to be seen if it picks up more momentum in 2026.

Micro-betting has also been a topic of controversy, with multiple wagering scandals in the professional ranks taking place last year. Dan Hutchison (D-4) introduced Assembly Bill 5971, which would ban micro-betting. Sen. Paul D. Moriarty introduced a companion bill in the Senate.

All of these stories are likely to take even more shape in 2026, with more set to emerge for New Jersey gambling.