Summary: Over the past few years, New Jersey has experienced continual growth within their online gambling industry. Will the growth continue or eventually even out?
Since 2013, online gambling has been a reality in the United States. Only three states currently offer online casino and/or poker gaming options, including New Jersey, Delaware and Nevada.
Pennsylvania will begin offering services soon, but in the meantime, New Jersey is the market leader in the US when it comes to online gaming. For five years, the state has held the top spot and shows no sign of slowing down. The market continues to grow, and it seems that there is no slowing down in sight.
Five Years and Counting
This year marks the 5th anniversary of online gaming in the state of New Jersey. For five years, the state has reached several milestones and been able to achieve accomplishment after accomplishment. Perhaps the most remarkable feat of the industry is that they have been able to see sustained growth over the five year time frame. Since the state began offering online gambling services the state has seen an increase in revenue every month.
This is quite the accomplishment considering the industry should have reached maturity at this point. Online operators continue to join the fray and instead of seeming revenues spread out among the existing and new operators, the revenues just continue to grow. It is important to point out that not only has the revenue grown each month but it has grown considerably, increasing at around 10% or more every month for the past several years.
So why is New Jersey so successful? What are they doing that Nevada and Delaware aren’t? For starters, the state’s online gaming law and regulatory oversight was created to be able to maximize the revenues earned. New online casinos and operators to the market helped to see continual growth. New casino products on offer, such as live dealer games and virtual sports helped solidify growth as well.
Of course, the increase in revenues will have to stop at some point, but when? Even if the revenues do reach a flat point, the state continues to bring in over $20 million a month with online gaming. At that point, that is close to half a billion in one year. And of course, $20 million is basically a low point. The state has been reaching $25 million on a consistent basis.
With the introduction of sports betting, operators are set to earn even more in the coming months.
Depending on how online gaming revenues are broken down, sports betting would add even more to the monthly totals. Operators have already launched land-based sports books and online options are available as well.
In August, online sports betting began in New Jersey and this month, the revenues showed that during the first month of operation, over $3 million was earned. Now, even more operators are offering sports betting online so this number is only going to increase, and most likely in a significant manner.
If online gambling totals include the sports betting numbers, the state should see their monthly revenues increase by several million dollars. It will be interesting to watch as the year closes out, just how much is earned via legal online gambling, including with the introduction of sports betting.
New Jersey will continue to be the number one state when it comes to online gambling for the year and most likely continue to have a stronghold into 2019 and beyond as the continue to see massive online gaming success.