Following a year which has brought great challenges to the state, there is some welcome news brought from gambling revenue for New Jersey. Indeed since 2018, when Governor Phil Murphy staked $20 on Germany to win the World Cup, things have looked very rosy indeed. That bet may have failed but the decision to allow gambling in the state has been nothing short of a winner.
So far, since that fateful day in 2018, the state has generated $7.5B in sports gambling and $530M in revenue. Even this year, when casinos and sportsbooks throughout the state have been closed, the state has been crushing the figures.
The Rise of Mobile Gambling
Much of these impressive gambling revenue figures, especially those from the current year, are due to burgeoning mobile gaming and betting. To put that into context, in the month of July, NJ doubled the revenue that Sin City could manage-even with the reopening of many casinos both here and in Las Vegas.
New Jersey gambling revenue figures in July were $300M compared with just over $150M for Las Vegas. The state makes around 80% of its total revenue from mobile gaming and it is no surprise that we have seen such a spike in mobile gambling revenue in 2020. That 80% increased in July to 92% as live sports returned following lockdown.
Earlier in the year, we ran the story that commercial gambling revenue figures were up 3.7% over last year. This figure now seems to be closer to the 5% mark, in spite of a nationwide lockdown.
Gambling Revenue Figures Lagging Behind Sin City
There is certainly reason to be excited about the gambling revenue figures in New Jersey and what that means for state finances, but they still sit in second place. Las Vegas is the perennial victor in the revenue race and even a pandemic won’t change that.
The mobile trend is certainly what will keep pushing NJ figures, however, because Las Vegas relies on out-of-town gamblers to pump up revenue.
Month-on-Month Increases For The State
This has been a challenging year for casinos, but we have still seen monthly increases in revenue despite people having less money to spend. We reported that April was a record-setting month for the state. Just as fast as we published those figures, another record-setting month occurred.
Another story we covered was about the blistering rise of online gambling figures here in the Garden State as revenue from that platform surpassed $2B. These figures from the Legal Sports Report website show that in the last couple of months, NJ has been leading the way in mobile gambling.
Responsible For Boosting Stock Prices
The increase in mobile gambling and revenue in the state is not just good news for the local economy. Online sportsbooks such as DraftKings have seen jumps in share price thanks to the success of NJ, as we covered here.
A number of sportsbooks can thank the residents of New Jersey for a far better year than many in the casino industry are having.
Reinvestment Of Gains Into Local Economy
Assuming that taxes are paid and reinvested, this is great news for Atlantic City specifically and all of New Jersey, right when it is most needed. The state, like many others, has seen a drastic reduction in tourism and the boost to the economy that brings. This decrease has been accompanied by job losses and business closures. Many hope this increased revenue, and the taxes associated with it, can be pumped back into our economy, and spent where it is most needed.