New Jersey Online Casinos Reach Record Revenue in May 2024

The New Jersey Division of Gaming Enforcement (NJDGE) recently announced a new milestone in the state’s online gaming industry: gross gaming revenue for May 2024 hit a record $192.1 million. This figure marks a significant 19.0% increase from May 2023 and represents a modest 2.2% growth from April 2024's revenue of $187.9 million.

The $192.1 million in May 2024 online casino revenue underscores the continued growth and resilience of New Jersey's iGaming market. Here’s a detailed look at the year-to-date performance:

• January 2024: $183.3 million
• February 2024: $182.3 million
• March 2024: $197.2 million
• April 2024: $187.9 million
• May 2024: $192.1 million

Comparing the performance to May 2023, when online casinos generated $161.4 million, the 19.0% year-over-year growth highlights the expanding player base and increasing popularity of online gaming in the state. This growth trajectory reflects both rising consumer interest and the efforts of operators to enhance their offerings.

The 2.2% increase from April 2024's $187.9 million revenue indicates steady market expansion. May’s figures are the second-highest monthly revenue for 2024, only behind March. This stability suggests a consistent demand for online gaming, possibly influenced by the variety of promotions and new game launches that often accompany spring and early summer.

 

Breakdown by Operator

May 2024 marks the third consecutive month that NJDGE has provided a detailed breakdown of online casino revenue by operator. The leading performers in the market remained consistent with the previous month:

1. DraftKings Casino: $42.2 million (22.0% market share)
2. FanDuel Casino: $40.0 million (20.8% market share)
3. BetMGM Casino: $22.4 million (11.7% market share)
4. Borgata Online: $17.7 million (9.2% market share)
5. Caesars Palace: $12.3 million (6.4% market share)

DraftKings Casino and FanDuel Casino continue to dominate, collectively holding over 40% of the market. Their extensive game libraries, user-friendly interfaces, and integrated sports betting platforms contribute to their strong market positions. Both operators benefit from established brands and robust promotional strategies that attract and retain a large player base.

BetMGM and Borgata Online have maintained their positions as significant players in the New Jersey online casino landscape. BetMGM’s integration with MGM Resorts and its diverse game offerings have fortified its market share. Similarly, Borgata's reputable brand and comprehensive game selection help sustain its performance.

Caesars Palace's online casino, with a market share of 6.4%, continues to leverage its brand recognition and loyal customer base to compete effectively. Its recent upgrades to the Caesars Palace Online Casino app and the inclusion of new game titles have enhanced its appeal.

New Jersey's online gaming market welcomed a new player in March 2024: Jackpot City Casino. Following its Pennsylvania launch in December, Jackpot City has quickly gained traction in the Garden State.

Operating under a license from Golden Nugget, Jackpot City generated $480,222 in internet gaming win since its March launch. Chris Canas, spokesperson for Jackpot City’s licensing operator, Digital Gaming Corp., highlighted New Jersey’s critical role in their U.S. strategy:

 

“The Garden State is crucial to our US online casino strategy.”

 

Jackpot City’s library in New Jersey includes titles from leading software providers such as Light & Wonder, Evolution, NetEnt, and IGT. The casino offers a broad range of online slots, video poker, table games, and live dealer games, catering to diverse player preferences. Its partnerships with additional suppliers like Games Global, Ezugi, and Oddsworks further enhance its portfolio.

New Jersey's consistent revenue growth solidifies its position as a leader in the U.S. iGaming market. The state's regulatory framework, diverse operator landscape, and consumer engagement strategies provide a blueprint for other states considering the legalization of online gaming.

As of now, online casinos are legally operating in several U.S. states, including Pennsylvania, Delaware, West Virginia, Connecticut, and Rhode Island. Each state has its regulatory nuances, but New Jersey's robust performance offers valuable insights into market potential and operator strategies.

The expansion of operators like DraftKings, FanDuel, and Jackpot City into additional states could influence the competitive dynamics and revenue potential in these regions.

 

Future Developments

Given the rapid growth, operators are likely to continue innovating and expanding their game libraries, user experience features, and promotional offerings. This ongoing development could sustain the revenue growth trend and attract new players, ensuring that New Jersey remains at the forefront of the iGaming industry.

The NJDGE’s May 2024 report highlights another record-breaking month for New Jersey’s online casino industry, with gross gaming revenue reaching $192.1 million. This growth reflects the continued popularity of online gaming in the state and the effectiveness of the operators' strategies. With new entrants like Jackpot City and established leaders such as DraftKings and FanDuel maintaining strong performances, New Jersey’s iGaming market is poised for further expansion and success. The insights drawn from New Jersey’s experience could guide other states in shaping their iGaming policies and market strategies.