January’s iGaming Surges in New Jersey With New Records

New Jersey’s gambling industry saw a mixed performance in January 2025, as igaming revenues reached new heights, marking the second instance in history where igaming outpaced other gambling sectors for monthly revenue. Total gambling revenue in the state hit $553.9 million, a 0.9% decrease from January 2024, but a 6% increase compared to December 2024. The slight year-on-year drop can be attributed to a notable decline in sports betting, while igaming continues to be a strong performer, even as the state’s overall gambling results fell short of last year’s record-breaking figures.

IGaming Hits a Milestone

Igaming has proven itself a robust pillar of New Jersey's gambling ecosystem, with January’s igaming revenue reaching $221.6 million. This represents a 20.9% year-on-year increase, although it was just shy of December’s record of $228 million by 2.8%. Despite this minor dip, the performance solidifies igaming as a dominant force in the state’s regulated market. For the second time in history, igaming revenue topped other gambling categories, with the first occurrence being just three months earlier in October 2024.

Breaking down igaming’s performance, “other authorized games” (mostly slots) accounted for $218.9 million, a 21.1% increase. Online poker also showed positive growth, rising 8.1% to $2.7 million. The growth in these segments demonstrates the increasing appeal of online gambling platforms and the continuous development of their offerings.

Leading the charge in igaming revenue were FanDuel and Golden Nugget Atlantic City, which generated $49.7 million in January—an impressive 26.4% year-on-year increase. Following closely behind were DraftKings and Resorts Casino Hotel, which slipped into second place with $44.1 million in revenue. Despite this drop, their performance reflects the broader strength of the New Jersey igaming market. BetMGM and Borgata ranked third with $28.8 million, while Borgata’s own online platform secured fourth place with $21.9 million.

Sports Betting Faces a Setback

In contrast, New Jersey’s sports betting industry saw a significant downturn in January. Revenue from sports betting dropped 28.4% compared to January 2024, amounting to $122.2 million. However, the drop was somewhat mitigated by an increase over December 2024’s performance, as January’s sports betting revenue was nearly double that of the prior month.

Online sports betting made up the bulk of the total revenue, with $118.5 million, marking a 29% year-on-year decline. Retail sportsbooks posted just $3.6 million in revenue, a 6.4% dip compared to last January. In terms of handle, New Jersey saw $1.15 billion wagered on sports, a 33.1% decrease from the $1.72 billion wagered in January 2024.

FanDuel and its partner, Meadowlands, dominated the online sports betting sector, generating $53.1 million in January, although this was a 34.2% drop from the previous year. DraftKings and Resorts Casino Hotel also experienced a decline, bringing in $35.6 million, down 11.5% from last January. BetMGM and Borgata were in third place with $7.4 million in revenue, a modest 6.3% increase from the prior year.

Despite the challenges facing some parts of the market, New Jersey’s land-based casinos also experienced growth in January. Total revenue from the state’s casinos reached $210.1 million, a 2.6% increase from January 2024. Slot machine revenue rose by 2% to $145.4 million, while table games generated $64.6 million, up 4.1%.

Borgata remained the leader in the land-based sector, generating $60.4 million in total revenue, a 4.7% increase year-on-year. Hard Rock followed closely behind with $38.1 million, reflecting a 2% growth, while Ocean Casino posted $35.2 million, a 6.4% rise. Tropicana saw the most significant growth, with revenue surging by 13.2% to $15.1 million.

This growth comes amid an ongoing debate regarding indoor smoking in New Jersey’s casinos. Though a state law banning indoor smoking was passed in 2006, casinos have remained exempt. Former state senator Loretta Weinberg, who originally sponsored the smoking ban, has called for the loophole to be closed, urging lawmakers to implement a full ban on smoking inside casinos. The outcome of this debate could have a significant impact on casino revenues in the months to come.

Conclusion

New Jersey’s gambling tax receipts in January were robust, with igaming tax revenue reaching $33 million, online sports betting tax contributing $15.4 million, and retail sports wagering taxes at $307,487. Casino gross revenue tax totaled $13.3 million, bringing the state’s total gambling tax revenue for the month to $62.1 million.

The New Jersey gambling market in January 2025 highlighted a shift toward igaming, with online casinos and poker continuing their upward trajectory. Although sports betting experienced a substantial decline, the broader market, buoyed by igaming and land-based casinos, showed resilience. As the debate over indoor smoking in casinos continues, the state’s gambling landscape will likely evolve further in the coming months, potentially reshaping the fortunes of the land-based casino sector while online gaming continues to thrive.