This year marks 10 years since the Garden State legalized its iGaming market. In January, much to all gamblers’ relief, the state elected to renew iGaming for an additional 10 years. Since it was launched, online casino gaming in the state has grown tremendously and is now the sector’s largest income generator behind slots.
Of the handful of states that have legal online casino gaming, New Jersey is easily the most fascinating. Not only does the Garden State enjoy one of the most vibrant populations of online gamblers, but it also boasts one of the most tolerant and forward-thinking markets in North America.
Online casino gaming was first legalized in 2013 making it the most considerable development since casinos were first allowed to operate in Atlantic City more than 30 years earlier. Before New Jersey started offering iGaming, both Nevada and Delaware had attempted to offer some form of iGaming.
However, New Jersey’s launch was considered the first true test of online casino gaming in the country as casinos in the Garden State would be the first to offer a full suite of casino games, not just poker. Gov. Chris Christie, who has been responsible for much of the gaming evolution that has occurred in the state, signed the legislation that welcomed iGaming.
Since its launch, online operators in New Jersey have not only created one of the most successful online gambling markets in the North American region, but they have also helped to set a standard that has been followed by other states. Today, online casino gambling remains legal in a handful of states although a lot of progress is being made to see more states regulate their online casino gaming.
So far, online casino gambling is only permitted in 6 states. These states are Delaware, West Virginia, Connecticut, Michigan, Vegas, as well as New Jersey. This year, several more states are hoping to legalize their online casino markets including Indiana and neighboring New York, which has affected the revenue produced by operators in New Jersey.
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New Jersey recently elected to extend iGaming for 10 more years
The 2013 bill that legalized online betting in New Jersey contained a clause that states that online gambling would expire 10 years after it was first legalized. Had the state failed to extend iGaming regulation, online gaming would have come to an end this year in October.
But that will fortunately not be taking place. It’s hard to imagine the Garden State without the vibrant online casino gaming market that it has created and grown. Today, online casino gambling represents a significant source of revenue for New Jersey. Assemblyman Ralph Caputo, alongside colleague Anette Chaparro, co-sponsored the bill that saw the expiration date of iGaming in New Jersey extended to 2033.
This iGaming extension will ensure that the Garden State continues to remain competitive at a time when more and more states continue to diversify their respective gambling markets. Pennsylvania has already seen its online betting and sports betting market generate impressive results while New York, which has only enjoyed legal sports betting for a year, is already considering expanding its iGaming market.
Given the mounting competition from all over the country, it has become imperative for New Jersey to not only maintain its online casino gaming but also diversify it with as many new innovations and offerings as possible. Although online casino gaming has been extended for an additional 10 years, it doesn’t mean that the market is permanent.
The bill that was co-sponsored by Caputo and Chaparro left a provision in case iGaming started to affect the performance of retail and in-person betting, which is still the lifeblood of New Jersey. Should iGaming start to diminish or slow down the performance of New Jersey’s brick-and-mortar casinos, then lawmakers will be forced to evaluate their decision to extend the iGaming market.
Since 2015, online gambling revenue in New Jersey has continually grown by more than 20% each year and the numbers only continued to grow. Based on figures shared by the New Jersey Division of Gaming Enforcement, the casinos, racetracks, as well as their corresponding partners managed to generate close to $436 million, which was a massive improvement compared to the same period last year.
As per the verticals, sports betting revenue continued to lead the verticals but iGaming wasn’t too far behind. The sportsbook revenue in January reached $72 million thanks to the combined handle of $ 1 billion. Online operations in the state generated $1.02 billion towards the combined handle of $1.08 billion, which just goes to show the importance of online gambling to the state.
As per the operators in New Jersey, Meadowlands and its partners PointsBet and FanDuel maintained their lead in sportsbook revenue when they recorded $47.7m. FanDuel was followed closely by DraftKings and its partners FoxBet and Resorts, who combined generated $12.7 million in revenue. Lastly, Borgata and corresponding partner BetMGM produced a cool $6.78 million.
The industry is showing no signs of slowing progress. Not only does new Jersey offer sports betting and online casino games such as poker, but it now offers fixed odds wagers on horse races. In May last year, BetMakers Technology Group, the New Jersey Thoroughbred Horsemen’s Association, and Darby Development entered into a strategic agreement that saw online fixed odds betting on horse races introduced in the state.
Since its launch, punters in New Jersey have been placing fixed odds wagers via a website, as well as a mobile app that’s powered by Equibase and BetMakers. BetMakers has also opened up wagers on eligible tracks located outside New Jersey under a fixed odds content distribution agreement.
Final Thoughts
At present, New Jersey remains the only state that allows legal online fixed odds bets. But this seems to be the standard that New Jersey has set as it has been responsible for many firsts in the market. As more and more states continue to consider legal iGaming, New Jersey’s willingness to push the envelope is what will allow the market to keep thriving rather than just surviving.
