The latest figures from the New Jersey Division of Gaming Enforcement are showing increasingly higher levels of growth. Numbers from the online gaming revenue for November 2022 show a 22.5% increase in the year-to-date (January 2022 to November 2022) compared to the same period last year. That’s $1.51 billion compared to last year’s $1.23 billion for the period.
This creates a positive outlook for the online casino industry after two uncertain years following new regulations and the Covid-19 pandemic. Land-based casino businesses are seeing a 9.7% growth year-over-year, from $2.34 billion to $2.57 billion. Meanwhile, sports wagering has seen a double-digit decline of 10.8% for the same period.
Online gaming revenue for the month of November alone was strong and is expected to carry over into the holiday season. Online casinos reported a growth of 23.9% in November, a total gaming win of $146.2 million compared to $118 million last year. The year-on-year growth for land-based casinos was weaker, with only a 3.7% increase in revenue, from $206.9 million in November 2021 to $214.6 this year. Sports wagering decreased by a staggering 29.9%, from $114.8 in November 2021 to $80.4 million this year.
2022 New Jersey Gambling Revenue
As industry experts had anticipated, sports wagering revenue dropped in 2022 as the neighboring state of New York officially opened up for sports wagering at the beginning of the year. In previous years, thousands of New Yorkers crossed the state border to place bets with online sportsbooks in New Jersey. Judging by the sharp decline in revenue in New Jersey throughout the year, it looks like the experts were correct in their analysis. Looking forward, it’s likely that this trend will continue with a decline in sports betting revenue as New Yorkers can continue placing bets remotely from their homes.
New York Sports Wagering Chipping Away at NJ Revenues
As the stats show, there is a decline in sports wagering for both the month of November and the Year-to-Date. The result is stemming from the legalization of sports wagering in the neighboring state of New York.
New York State Senator Joseph Addabbo Jr. a prominent proponent of pushing sports betting legalization forward, told the media, “Going back to the first week we started, we did as much in two days as we had in two years before that. And we’re not even firing on all cylinders.”
From a US punter perspective, the period between January and April, even stretching into May and June, are the hottest months for sports wagering. You have the Super Bowl and playoffs in many major American sports, such as the NBA and NHL. This year we also had the Winter Olympics and the FIFA World Cup in football which further boosted the revenue.
Other States in the US Are Experiencing an Increase in Gambling Revenue as Well
New Jersey and New York are not the only states that have experienced significant growth. As the legislative landscape has opened up for online gambling in recent years, the industry is booming across the country. In a report from earlier this year, total gaming revenue increased in 32 out of 34 states for a total of 29% increase year-over-year. The success of the industry goes beyond just profits, it goes right into communities across the country. State and local tax contributions are significant and help fund everything from infrastructure to education to healthcare and emergency services.
