In 2022, gambling revenue in New Jersey was at a level last seen in 2006.
The situation changed shortly after the high revenue levels of 2006 as casino gambling in Pennsylvania took hold after legalization in 2004 under the Racehorse Development and Gaming Act. The competition from casino gambling in Pennsylvania damaged revenue in New Jersey, and five of seven casinos operating in the state closed.
The gambling landscape in both states is now very different from how it was back in 2006. Online casino revenue now constitutes a considerable portion of gambling revenue and has helped New Jersey in particular, to improve its overall gambling revenue figures. Keep reading as we look more closely at online and land-based casino revenues in both states.
Online casino revenue high in both states
The 2022 gambling revenue figure of $5.2 billion in New Jersey matched the all-time high of 2006 in the state and was comparable to the figure of $5.2 for Pennsylvania. When we spoke to the industry experts at Justgamblers they commented on the impact of online casinos on overall revenue, saying:
“You look at the online gambling revenue figures in both states, and they are significant. This is especially the case in New Jersey, where around half the overall revenue came from online games. In Pennsylvania, the picture for online gambling in 2022 was also positive with overall iGaming revenue of around $1.3 million, an increase of 22.6% on 2021 figures.”
It’s clear from the picture Justgamblers creates with their comment that the online gambling position is positive in both New Jersey and Pennsylvania. The position of land-based casinos in the states is more mixed.
For a full picture of the current online casino landscape in New Jersey, you can find their guide to it here where the industry expert Jesper Kärrbrink gives his view on the different operators in the market at the moment.
Some land-based casinos performed better than others in both states
When you look at the revenue figures for land-based casinos in New Jersey and Pennsylvania; you can see that there was a difference in the fortunes of providers with losses and gains occurring.
In New Jersey, only three casinos, Borgata, Ocean, and Resorts, had more in-person gambling revenue than they did in 2019. This level of performance was less impressive than for gambling revenue overall, where six casinos experienced higher revenues than they did in 2021. The difference is the online content that land-based operators provide.
In Pennsylvania, the performance of land-based casinos varied greatly. As an example of this, it’s interesting to take a look at three operators. Wind Creek Bethlehem was a top performer, with revenue increasing by 2.69% for slot games and by 31.62% for table games. The Rivers Casino Pittsburgh also experienced an increase in slots revenue, but for table games, its revenue decreased by -3.02%. Finally, Harrah’s Philadelphia saw its revenues for both types of games reduce by -4.86% and 15.76%, respectively.
Overall, the fortunes of the gambling industries in New Jersey and Pennsylvania in 2022 had similarities.
The revenues were comparable in both states, with online casino games having a valuable role to play.