New Jersey Online Gambling Touted as Huge Success
February 12, 2019
Any US states that might be considering the legalization of online gambling for its residents won't have to look any further than New Jersey for a model of success.
The numbers from 2018 are rolling in and by any measure, online gambling is proving to be very popular and profitable. The first indication of growth is the fact the state's month over month revenues set records in 6 of the 12 months. In December, the state's online casinos pulled in a little more than $30 million, just missing a record for the 7th time.
Several factors are contributing to New Jersey's move to allow land-based casinos to offer access to residents online. First, the state saw the opening of two major new land-based casinos, each of them authorized to offer an online product. These two new casinos, the Hard Rock Atlantic City and Ocean Resort Casino, figure to be a major player in New Jersey's gambling industry for years to come.
Another contributing factor was the legalization of online sports gambling. Soon after the US Supreme Court ruled the US federal ban against sports betting was unconstitutional and remanded the legislation to the states, New Jersey went all in. The reaction from the state's gambling operators was swift. The fact they could introduce online sports gambling before the end of the year serves as a testament to the industry's commitment to give customer what they want. After only a couple of months with revenues rolling in from online sports betting operations, it's clear the time had come to allow such gambling.
For 2019, all of the stars seem to be lining up for a banner year. With a full year of online sports gambling hitting the books, all online gambling revenue records will be smashed. Local industry estimates show the industry could generate revenues of as much as $400 million in 2019. That would be a 35% increase over 2018.
There are two important factors that could vastly influence the direction of online gambling revenues in the coming year. To the upside, the state is expecting to see an increase in the number of online operating licenses being issues. More online casinos could create more revenues due to increased exposure. To the downside, neighboring states are quickly moving to legalize online gambling, which could adversely affect the stream of revenues coming in from non-residents who may not be following the residency laws in place.