Second-Best Month Ever Sends NJ Online Casinos Over $6 Billion Mark In Lifetime Revenue

The New Jersey online casino market shows no signs of slowing down as it inches closer to a 10-year milestone later this year. Including numbers from April, NJ online casinos have now eclipsed $6 billion in lifetime revenue.

Online casinos in New Jersey generated just under $158.9 million in April, according to data released Tuesday by the state Division of Gaming Enforcement. April’s total fell short of March’s record-setting $165.7 million, but it’s good enough for the second-most in the state’s history.

Compared to April 2022, last month’s online gambling revenue is up 16.1%. Year-to-date, online casino has generated $620.1 million, a Y-o-Y increase of 13.7%.

New Jersey was the first state to legalize online casinos in November 2013. In that time, internet casinos have generated over $6.1 billion in revenue and more than $1 billion in taxes.

Here are three key takeaways from April’s revenue figures:

NJ online casino market still soaring from COVID boost

It’s been well established that COVID-19 and the ensuing business closures and lockdown orders were like rocket fuel for the online casino industry in NJ.

Before Atlantic City’s nine casinos closed in March 2020, the high-water mark for monthly revenue from internet casinos was $55 million. It was $79.9 million by April, and it’s never dipped below $80 million since.

But the growth of online gambling did not subside when land-based casinos reopened. The latest numbers drive home the point.

Since January 2021, online casino revenue in NJ has topped $100 million every month, except for February 2021.

In three of the four months this year, online casino revenue has topped $150 million. Only February (28 days) was below the threshold at $142.6 million.

NJ pols have never met a tax they didn’t like

Very few people are more excited about the rise of online casinos in NJ than the state’s politicians. More internet gambling revenue equals more money for Trenton officials to spend.

A lot more.

Online casino revenue is taxed at a higher rate (15%) than AC’s casino slots and table games (8%), sports betting (8.5%) and online sports betting (13%).

Last month, taxes from online casinos accounted for more than 49% of all gambling-related taxes statewide.

Through the first four months of 2023, online casinos have added $93 million to state coffers. The other three gambling segments have combined for $94 million in taxes.

Online taking a bigger slice of NJ gambling pie…but there’s no cannibalization here, folks

While online casino revenue has been trending upward for years, land-based gambling revenue in AC has yet to rebound from 2020. As a result, online revenue now accounts for a significantly larger percentage of the statewide total.

In 2019, the year before COVID, online accounted for less than 14% of AC’s gross gaming revenue. AC casinos were responsible for 77% and sports betting claimed the remaining 8.5%. Online casinos’ slice of the pie rose 20% (34%) in 2020 due to COVID.

By the end of 2021, AC’s slots (39.6%) outperformed online (28.9%) but table games (14.3%) fell behind. Last year, the breakdown was: slots (40.4%), online (29.6%), tables (14.7%) and sports (15%).

In April 2023, online casinos were responsible for 38% of the monthly reported total. The same percentage holds true for online casinos’ percentage for the year-to-date.