New Jersey's Division of Gaming Enforcement reported that the total gaming revenue for October 2024 was $499.8 million, marking a 2.6% increase year-over-year.
Despite declines in traditional casino games and other categories such as sports betting, the robust performance of the internet (online) gaming sector drove this growth.
Industry Transformation Leads to Decline in Casino Profits
In October 2024, the revenue for the state's nine casino hotels fell by 8.5% to $208.7 million. Since the beginning of the year, casino revenue has reached $2.36 billion, a decrease of 1.6%.
Notably, slot machine revenue slightly declined by 1.9%, while table games revenue saw a significant drop of 25%.
The shift towards online platforms, as consumer preferences change, highlights the challenges faced by traditional forms of gaming.
Online Gaming Drives Growth
Online gaming continues to trend upwards, with revenues increasing by 28.1% in October 2024, reaching $213.6 million.
So far this year, online gaming revenue has reached $1.95 billion, growing by 23.7%. The growth in online gaming reflects its increasing significance to New Jersey's gaming market, thanks to player demand and technological advancements.
In October 2024, sports betting revenue decreased by 16%, falling to $77.5 million. However, year-to-date sports betting revenue has grown by 13.9%, reaching $912.8 million.
Broad Trends and Context
The data from October 2024 aligns with broader trends observed earlier in the year. For instance, in August 2024, New Jersey reported total gaming revenue of $555.1 million, with internet gaming revenue growing by 27.8%, but monthly sports betting revenue declining by 34.7%.
These results highlight the ongoing evolution of New Jersey's gaming industry, with online platforms showing strong growth while traditional and retail gaming forms face challenges.
The industry's shift towards digital and mobile gaming experiences allows operators to reach a broader audience and adapt to changing consumer preferences.
It's worth noting that the decline in October is attributed to a reduction in gaming activities during the month, consistent with seasonal trends. Nevertheless, online sports betting still contributes significantly, accounting for a large portion of the state's sports betting revenue.
Outlook
As operators continue to adjust strategies to meet the growing demand for online gaming, New Jersey's gaming industry remains in a phase of ongoing transformation.
So far this year, the state's total gaming revenue has reached $5.22 billion, growing by 9.3%, continuing to demonstrate the resilience of its gaming market.
Regulatory updates, technological innovations, and shifts in consumer behavior may play key roles in shaping the future development of New Jersey's gaming industry.
Operators are expected to focus on expanding their online offerings and refining their sports betting strategies to maintain growth across all areas.
