New Jersey’s gaming sector reached unprecedented heights in 2024, achieving a record total revenue of nearly $6.3 billion. This figure marks a significant 9% increase over the previous year, primarily fueled by the explosive growth in online gambling and sports betting. However, despite these record-breaking numbers, Atlantic City’s brick-and-mortar casinos faced a challenging year, with a slight dip in earnings from traditional casino games.

Online gambling growth drives statewide revenue:

The surge in online gaming has fundamentally reshaped the state’s gambling landscape. In 2024, online gambling revenues alone totaled $2.39 billion, a striking 24.1% increase compared to the previous year. This growth has propelled New Jersey to the forefront of the iGaming industry in the U.S., with internet gaming now making up a substantial portion of the state’s gambling haul.

The impact of online gambling is especially pronounced when comparing it to the performance of Atlantic City’s land-based casinos. While the nine casinos in the resort city won $2.82 billion from in-person gamblers, this represents a 1.1% decrease from 2023. In contrast, online gambling revenue, which has become increasingly popular among New Jersey residents, reached $2.39 billion, nearly matching the in-person earnings from Atlantic City’s casinos.

As more people turn to online platforms for convenience, the question of whether virtual gaming will eventually surpass traditional casino earnings in Atlantic City is becoming more pressing. According to data from the New Jersey Division of Gaming Enforcement (NJDGE), online gaming revenue for 2024 was already equivalent to 85% of the total winnings from Atlantic City’s casinos, a notable increase from just 18% five years ago.

While the total gaming revenue across New Jersey has seen substantial growth, Atlantic City’s casinos have struggled to keep pace with the online sector. Physical casinos in the area, particularly smaller properties, have found it increasingly difficult to maintain their market share in the face of the online gambling boom. For example, the Golden Nugget, which once lagged behind in physical casino revenue, has now emerged as a leader in the online space. In 2024, Golden Nugget’s online gambling revenue soared to $688.9 million, contributing significantly to its total earnings of approximately $836 million, making it the second-largest revenue generator in Atlantic City, behind only the Borgata, as reported by 70and73.

The decline in traditional casino wins is partly attributed to changing consumer preferences and the rise of digital platforms offering the same games from the comfort of home. Players can now access a wide range of online slots, table games, and even sports betting options, all from their smartphones or computers. This shift in consumer behavior has undoubtedly affected foot traffic to Atlantic City’s brick-and-mortar casinos.

Challenges faced by Atlantic City’s physical casinos:

Mark Giannantonio, president of the Casino Association of New Jersey, expressed disappointment over the 2024 results, highlighting the broader challenges facing the region’s casino industry. He noted that the decline in physical casino earnings was driven by several factors, including a lack of major events such as the Atlantic City Airshow and large-scale beach concerts. Additionally, issues such as beach erosion have affected the city’s appeal to tourists.

“The 2024 gaming results are very disappointing,” said Giannantonio, according to the Press of Atlantic City. “While Atlantic City casino resorts have consistently provided world-class experiences and amenities to attract and retain customer visitation, the decline in visitation and tourism to Atlantic City has been evident throughout the year due to numerous factors outside of our control.”

Giannantonio and others in the industry are looking to state and local governments for solutions, urging them to take action to reverse the decline in tourism and visitation. He emphasized that 2025 should be a year for a “rebound,” with all stakeholders collaborating to address the challenges facing Atlantic City and restore its position as a leading beachfront resort destination.

Despite the decline in physical casino earnings, New Jersey’s overall gaming revenue received a substantial boost from online gambling and sports betting. The state’s online gaming industry alone generated $358 million in tax revenue, more than double the $180 million from in-person casinos. This is a clear indication of the growing importance of the digital gambling sector for New Jersey’s economy.

In terms of sports betting, New Jersey once again broke records in 2024, with bettors placing more than $12.7 billion in wagers, stated the NJDGE in its press release. Of that, nearly $1.1 billion was retained by casinos, racetracks, and their partners as revenue, reflecting an 8.7% increase from the previous year. Even though sports betting experienced some setbacks in December, with a 42.6% drop in revenue from the previous month, the overall results for 2024 showed growth across most sectors.

The evolving landscape of gambling in New Jersey suggests that both physical casinos and online gambling platforms will need to adapt and innovate in order to thrive. Jane Bokunewicz, director of the Lloyd D. Levenson Institute of Gaming at Stockton University, noted that while online gaming has undoubtedly reshaped the market, traditional casinos have not experienced a steep decline. She added that continued innovation and reinvestment in both physical and digital spaces will be key to maintaining the state’s competitive edge.

“There is no clear evidence that online gambling is cannibalizing traditional casino revenues,” said Bokunewicz. “Both sectors are growing, but operators will need to stay attuned to emerging trends and changing customer preferences.”