New Jersey gambling hits $5.2 billion in 2022 to match record 2006 levels, online gambling on the rise

According to the latest press release of the New Jersey Division of Gaming Enforcement reported by the Associated Press, the 2022 gambling revenue of the state was equal to the record $5.2 billion set in 2006, with half of this amount won by casinos from in-person gamblers and the other half realized through online operations.

$5.21 billion generated in 2022:

The state gaming authority reported that the casinos, horse racing sports bets, and online partners of both types of gambling generated $5.21 billion in revenue last year, which is 10% more than the amount won in 2021. Also, the 2022 gambling revenue of New Jersey gambling companies matched the level last seen in 2006. After the post-2006  downfall, leading to the closures of 12 casinos operating at the time, the New Jersey gambling industry recovered and grew until 2019, when the pandemic brought the figures down gain.

2022 surpassed pre-pandemic levels:

In 2022, in-person winnings from gamblers finally surpassed pre-pandemic levels of 2019 to mark the accomplishment of a long-sought goal of the Atlantic City casino industry. The casinos won $2.78 billion from in-person gamblers in 2022, compared with $2.68 billion in 2019. But the industry generated a significant portion of the 2022 record revenue through online gambling and sports betting. According to the AP, these revenue streams contributed to the market recovery but are considered ”heavily shared with third parties such as sports books and tech platforms.”

Enormous efforts to match 2006 levels:

Sarah Grady from Stockton University, who studies the Atlantic City gambling industry, said that the state and the casinos introduced enormous efforts to achieve the 2006 levels again. “To achieve the returns we have today took a substantial expansion and diversification of the New Jersey gaming product to compete with increased competition from neighboring states,” Grady said. Such product diversification included the legalization of internet gambling in 2013, and the introduction of sports betting in 2018 after the respective U.S. Supreme Court ruling in a case brought by New Jersey that cleared the way for this and all other U.S. states to offer legal sports betting.

Best possible experience:

Commenting on the 2022 gambling industry performance in the state, Mark Giannantonio, president of the Casino Association of New Jersey, said: “In 2022, the Atlantic City casino industry continued to face challenges, including the lingering effects from the pandemic, a difficult economy, and high inflation.”

Giannantonio added: ”As we move into a new year, Atlantic City casinos are committed to providing the best possible experience for our customers, which includes making significant investments that will continue to solidify Atlantic City’s position as a world-class resort destination with top-notch dining, shopping, and entertainment offerings.”

$526 million taxes paid:

The casinos, sports books, and internet gambling operations generated more than $526 million of tax revenue in 2022. Almost half of this amount was collected by the state from a 15% tax on online gambling revenue. New Jersey’s casinos and horse tracks took nearly $11 billion in sports bets in 2022 to keep $726 million as revenue after paying off winning bets and other expenses.

Online gambling  – an integral part of the industry:

The year 2022 ended with a strong December with a total gambling revenue of $454 million, which is 12.5% more than December 2021. In-person casino winnings were $215 million in December, which is 1.8% more on a year-to-year basis, but also half of the total revenue reached in December 2022. One may assume that online gambling – which was boosted during the pandemic to help the industry survive – has now become an integral part of the gambling industry.