Online casinos and poker rooms in New Jersey had a record-breaking year in 2021, as the region’s digital and retail sportsbooks took in more than $1 billion dollars in bets for the fourth month running. The Garden State’s gaming companies ended the year with a revenue of $133.2 million, which was greater than any previous high of $127 million achieved in October 2021. This was also up 25.3 percent from $99.5 million in December 2020. In total, New Jersey’s online casinos earned $1.4 billion in gross revenue this year, up 40.9 percent from last year, and produced$239.2 million dollars in state and local taxes, up 40%.
Online casino gaming sets all-time record
In 2021, the top 12 online casinos in New Jersey generated $950m in revenue, 36 percent from 2020. The total number of online casino players increased by 23 percent to reach a new record high of 460,000. Online poker also had a strong year, as the state’s licensed rooms generated $41.0m in gross revenue, up 19.0 percent from 2020. Total player numbers were up 14 percent to 95,000, while unique players increased by 16 percent to 85,000.
With more than $30bn wagered on sports in 2021, New Jersey saw a handle up 44 percent from 2020. This was driven by online and retail sports betting growth, with a handle of $21.0bn wagered online, an increase of 58 percent from 2020, and $12.0bn wagered in-person, up 13 percent. Online gaming has been a significant driver of growth for the state’s casinos and poker rooms and tax revenue. In 2021, online gaming generated $299m in taxes, up from $239m in 2020.
What is expected to continue in 2022?
Many states are now starting to legalize and regulate online gaming, so the growth of this industry is expected to continue into 2022. New Jersey is in a good position to stay one of the leaders in the United States gaming market. NJ is ripe for both players and casino operators because of its many licensed operators, a diverse range of games, and favorable tax regime. The recent launch of online casinos in the state is expected to drive even more growth in the region. Neighboring states are already seeing strong interest from their residents and are expecting to generate significant revenue for their respective casino industries.
With more states continuing to legalize various forms of internet gambling, more individuals are becoming accustomed to it. With additional areas allowing internet gambling, the overall US market is anticipated to reach $30 billion in gross gaming revenue by 2025. New Jersey has a competitive advantage in the market because of its size and proximity to other East Coast markets.
The AGA’s Commercial Gaming Revenue Tracker reports that commercial gaming revenue in the second quarter reached $14.8 billion, setting a new quarterly all-time high for the sector. Despite a modest decrease over the course of the period, this amount nonetheless outperformed Q4 2021 by 3.3 percent.
According to the AGA, commercial gaming revenue in the United States has increased to $29.16 billion through June. This is approximately 18% greater than H1 2021 and indicates that the US gaming industry will set a new yearly record for the second year in a row. “Q2’s results show 16 months of growth in commercial gaming,” Bill Miller, president, and CEO of the AGA remarked. “Our performance over H1 2022 reflects continuing consumer demand for legal alternatives as well as gaming’s long history as one of America’s favorite pastimes.”
In the coming years, the US gaming industry is set to experience explosive growth. And New Jersey is in a favorable position to be one of the leaders in this space. By 2025, it’s estimated that the market will reach $30 billion due to more states legalizing online gambling. Compared to other East Coast markets, New Jersey is relatively small but has a high potential for game sector success because of its prime location.